Domestic Resource Mobilization And MDGs In Zimbabwe
The study sought to analyse Aid and domestic resource financing in Zimbabwe, and the implications of these on the Post 2015 MDG Agenda.
The research findings indicate that domestic resource mobilization needs to be complemented by appropriate financial and economic policies that bolster financial management and supervision systems in the country, as well as a sustained advocacy for debt cancellation. Zimbabwe is presently locked in a quagmire of expanding foreign indebtedness. In 2014 Zimbabwe’s external debt stock is about 120% of GDP, which is above international debt sustainability benchmark of 60%. Zimbabwe is also in default on its debts. But while debt payments are relatively low, at about 0.5 per cent of government revenue, the public debt burden remains a major deterrent on savings mobilization efforts through its impacts on monetary stability and interest rates, and crowding-out effects. This impact negatively on the country’s international credit rating, and on foreign investment and credit inflows.