Business Reporter
UNITED Nations (UN) resident coordinator for Zimbabwe ,Edward Kallon says the obtaining currency instability is part of cocktail of problems which needs redress.
Speaking at the Post-Fourth International Conference on Financing for Development held in Harare recently, Kallon said the government should work on strengthening tax systems and fiscal governance in a bid to generate sustainable revenue.
“Zimbabwe’s economic challenges, debt and arrears burden, currency instability, unilateral coercive measures, limited investor confidence and recurrent climate shocks are emblematic of these broader issues.
“Implementing progressive taxation, reducing illicit financial flows and expanding the formalisation of the informal economy through incentives can generate domestic funds vital for development,” he said.
This trend risks leaving many vulnerable populations behind, he said.
Kallon said global debt levels among developing nations had surged and access to affordable finance had become elusive.
Kallon said reducing rent-seeking behaviour and improving fiscal governance would ensure tax revenues are effectively used for development.
“This also requires enhancing international cooperation and supporting civil society efforts to expose tax evasion and corruption,” he said.
Kallon reiterated the need to strengthen financial institutions and regulatory frameworks to enable a transparent system that results in more effective utilisation of resources.
“Central to these efforts is the adoption and implementation of sustainable policies that promote social inclusion through a devolution governance approach and environmental sustainability, building resilient economies and communities.
“Zimbabwe can also advocate at regional and global forums for reforms that increase representation and voice for developing countries in multilateral institutions.
“This includes advancing debt relief initiatives, improving concessional financing terms and ensuring climate finance aligns with national needs.”
He said the government should also strengthen financial institutions, regulatory frameworks, and policy implementation capacity, which enables more effective utilisation of resources.
