Zimbabwe is admitting that it is facing challenges in fully implementing the staff monitored programme that was approved by the International Monetary Fund’s management in June 2013 to try and revive the county’s ailing economy.
The letter of intent to the IMF, co-authored by Finance Minister Patrick Chinamasa and governor of the Reserve Bank of Zimbabwe, John Mangudya, indicates that the country is struggling to revive the economy.
The two admit that though some steps have been taken to implement the IMF recommendations, Harare is finding the going tough as a result of a non-performing economy.
Zimbabwe though says it has met two of the six quantitative targets, the floor on protected social spending and the floor on payments to the poverty reduction and growth trust.
But the country admits it has failed to reduce its external debt, reduce the civil servants bill, cut ballooning government expenditure, and fully bring clarity on the use of diamond revenue, among other reforms.
Economist Godfrey Kanyenze, director of the Labour and Economic Development Research Institute says Harare lacks the political will to address the economic crisis.