A parliamentary portfolio committee has pleaded with the government to fund the Foreign Affairs and International Trade ministry’s 2024 budget in United States dollars to enable it to deliver on its mandate.
This came out in a report tabled in Parliament on the budget allocation analysis by foreign affairs committee chairperson, Webster Shamu.
He said the ministry was allocated ZWL$976 billion (US$150 million) against a ZWL$1,139 trillion (US$175 million) bid presenting a shortfall of 16,7%
“I wish to highlight to this august House that while this revised expenditure envelope was provided for in Zimdollar, 80% of the ministry’s budget is expended in US$ because foreign mission operations and salaries are funded in foreign currency and subscriptions to international organisations are primarily paid in US$,” Shamu said.
“The government must provide the budget for the ministry in foreign currency as payments are in foreign currency such that the ministry does not suffer from exchange rate movements.”
“The Finance, Economic Development and Investment Promotion minister should reconsider to fully allocate the funds in time such that the ministry will not be affected much by exchange rate volatility as evidenced by movements in the exchange rate in 2023.”
He said there was a need for sufficient budgetary support towards diplomatic missions to clear legacy debts.
“In order to improve accountability and efficiency in the operations of embassies in foreign missions, the committee highly recommends that the Foreign Affairs ministry should be given a relatively leading role in ensuring timeous refurbishment and maintenance of Zimbabwean embassies,” Shamu said.
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He also called on the Treasury to expeditiously release allocated resources to ease operational challenges and reduce the effects of exchange rate volatility.
“In light of the foregoing recommendations, the committee is humbly requesting the Finance, Economic Development and Investment Promotion minister to award the ministry its budget request of ZWL$1,139 trillion instead of the budget ceiling of ZWL$976 billion,” he said,
“This request, if fulfilled, will help the Foreign Affairs and International Trade ministry to effectively discharge its mandate.”
He added: “However, considering that the budget is denominated in the local currency, which is susceptible to fluctuations in exchange rate, as has been observed in previous years, the allocated funds fall short of adequately addressing employee compensation and clearing outstanding salary arrears amounting to US$6,2 million.
“Moreover, the proposed budget is inadequate in covering the salary expenditures for the recently established missions in Equatorial Guinea, Pakistan and Saudi Arabia.”
Shamu said insufficient funding undercut international diplomatic efforts by Harare.
“The adverse effects of underfunding are manifold and, when coupled with inadequate budget provisions, it intensifies the potential perils of non-payment of crucial expenses at missions such as living expenses, school fees for children of mission personnel, healthcare, subsequently precipitating dire circumstances akin to evictions or lockouts,” he said.
“Pursuant to its mandate of improved country perception and image, the ministry intends to continue with various construction plans, major repairs and facelift projects for chanceries, ambassadors’ residences and officers’ houses at various missions.
