Loading...
See More

Revenue crunch may shut Zimbabwe govt

Mar 14 2012 16:57 Reuters

Related Articles

Implats, Zim dispute deepens

Implats denies Zimplats offer

Zimplats stake to be given to state fund

Zim insists on Implats equity deadline

Zim to act on Implats after deadlock

Implats gives up 51% Zimplats stake

 
Harare - Zimbabwe’s government faces a shutdown because projected revenue from the diamond industry has failed to come through, Finance Minister Tendai Biti warned on Wednesday.

“Diamonds will have to deliver, otherwise the only thing we have to do will be to pay wages and government will have to close,” Biti told reporters.

“We cannot have a situation where 70% of revenue is going towards wage demands. That’s not an acceptable position. Wages are crowding out other government expenditures,” he said.

Biti said according to the mines ministry, diamond auctions had not taken place in 2012 before March.

Biti is a member of the opposition Movement for Democratic Change which is in an uneasy coalition government with President Robert Mugabe’s Zanu-PF party.

Zanu-PF controls the mines ministry and is therefore seen as profiting from the diamond sector.

Zimbabwe’s economy has been in a tentative recovery after a decade of steep decline, but with unemployment at 80% its tax and revenue base remains extremely low.
tendai biti  |  zimbabwe government  |  diamonds  |  zimbabwe
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
14 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...