Zim unveils IMF funds rollout plan

By Stanley James, Business Editor

THE country has come up with a solid plan for utilising funds released through the International Monetary Fund (IMF) Special Drawing Rights (SDR) with the focus on foreign currency reserves and mitigating the impact of Covid-19.

The SDR allocation plan released this week shows that of the US$961 million received in August last year, more than US$280 million will be utilised on rebuilding foreign currency reserves, while US$220 million has been set aside for mitigating the impact of the Covid- 19 pandemic and external shocks.

More than US$210 million is being proposed to be used for projects in the health, education and vulnerable groups.

However, at least US$70 million was drawn-down from the facility last year for purchasing Covid-19 vaccines.

Infrastructure projects account for US$164 million of the SDR allocations.

A revolving horticulture fund, retooling fund for manufacturing entities and support for small and medium enterprises has also been included in the SDR allocations.

The government is expected to report to Parliament during on the usage of the SDR funds by mid-year.