Zimbabwe Roundup: EV import duty, power cut in parliament, remittances
Minister announces 15% reduction in import duty on electric vehicles
Zimbabwe's Finance Minister Mthuli Ncube announced a 15% reduction in import duty on electric vehicles (EVs), lowering it from 40% to 25%, effective January 1, 2025. This initiative is geared towards enhancing market penetration of EVs, with a goal of achieving 33% by 2030, while also facilitating the establishment of solar-powered EV charging stations through extended duty rebates for necessary equipment. Importantly, this effort aligns with Zimbabwe's commitment to combat climate change, leveraging its lithium resources for battery manufacturing.
Power cut during parliamentary budget speech
A sudden power cut occurred during a recent parliamentary budget speech while Finance Minister Ncube was concluding his speech. Opposition MPS swiftly leveraged this incident, characterising it as a stark representation of the ongoing challenges faced by the nation, highlighting the unreliable energy infrastructure Zimbabwe is grappling with.
Zimbabweans are among the top immigrants in the UK
The migration of Zimbabweans to the United Kingdom has shown a notable increase over the past year, reaching 36,000, which places Zimbabwe among the top five non-EU nations contributing to long-term immigration. This surge, up from 32,000 in 2023, is primarily driven by the demand for skilled professionals in the UK, particularly in healthcare. The migration of Zimbabwean healthcare professionals, such as nurses and doctors, indicates a trend towards seeking better career opportunities and living conditions abroad, raising concerns regarding a brain drain that exacerbates the challenges faced by Zimbabwe’s own healthcare system.
China-Zimbabwe trade exceeds $3 billion in 2024
Trade relations between China and Zimbabwe exceeded $3 billion in 2024, highlighting the strong economic relations between the two nations. The Chinese Ambassador to Zimbabwe, Zhou Ding, revealed a $10 million humanitarian food aid package designed to support Zimbabweans affected by drought. The event, attended by key Zimbabwean officials, reiterated historical cooperation and explored avenues for further collaboration in trade and human resource development, illustrating the potential benefits of continued bilateral relations.
Zimbabweans abroad remitted $1.9 billion by September 2024
Zimbabweans living abroad sent $1.9 billion in remittances during the first nine months of 2024. This figure, representing approximately 16% of Zimbabwe’s foreign currency inflows and exhibiting a 16.5% increase from the previous year, reflects ongoing financial support for the home economy. International reserves saw a substantial rise from $285 million in April to $540 million by October 2024, attributed to increased currency and gold holdings. Despite stable inflation post the introduction of Zimbabwe Gold (ZiG), challenges persist, notably from parallel market activities, prompting the Monetary Policy Committee to respond with adjustments to the bank policy rate and currency withdrawal limits, evidencing Zimbabwe's ongoing efforts to stabilise its economy in the face of global economic pressures.
