Government turns to private sector to plug ZiG627 billion budget gap

THE government will turn to the private sector and pension funds to plug a ZiG627 billion funding gap between bids by ministries, departments and agencies (MDAs) and available resources, Finance Minister Mthuli Ncube has said.

Speaking at the close of the 2027 National Pre-Budget Seminar in Bulawayo this Saturday, Ncube said Treasury can only afford ZiG347 billion against ZiG974 billion demanded by MDAs.

“Infrastructure remains among the most powerful economic block. We have not closed in full through the budget, we can also receive support from private sector resources and pension fund resources,” Ncube said, referencing Speaker Jacob Mudenda’s opening address.

“We should put in place structures for harnessing these resources on a public-private, pension funds as potential partners to government.”

Ncube said the government will create an infrastructure fund to cover road construction, health and water infrastructure.

“We are going to raise the resources from the private sector with structures that will put in place to create an infrastructure fund, which will cover road construction, health infrastructure, water infrastructure, and other infrastructure.

“So, in terms of infrastructure funding, where we can collect user charges, such as fees and so forth, we will be leaning on the private sector,” he said.

He said government will also accelerate recapitalisation of the Women’s Bank using private sector resources without diluting its focus on women enterprises and will tap external credit lines.

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