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In 2013, Government introduced the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, a five-year development blueprint. Our Chief Reporter Kuda Bwititi engaged Chief Secretary in the Office of the President and Cabinet Dr Misheck Sibanda on Zim-Asset’s progress and we publish excerpts of that conversation here.
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Q: It is now two years since Zim-Asset’s introduction. Tell us, briefly, what Zim-Asset is all about.
A: Zim-Asset is Zimbabwe’s socio-economic development blueprint for the period October 2013 to December 2018.
It is a results-based plan that is guiding national development over the five-year period.
The implementation of Zim-Asset is cluster-based, with each cluster being driven by two core lead ministries.
The clusters, namely: Food and Nutrition Security; Social Services and Poverty Eradication; Infrastructure and Utilities; and Value Addition and Beneficiation are underpinned by the Fiscal Reform Measures and Aid Co-ordination, as well as Public Administration, Governance and Performance Management sub-clusters, which deal with cross-cutting issues of resource mobilisation and reforming governance and institutional systems as well as policy frameworks and rules and regulations to enhance the implementation of Zim-Asset.
The oversight responsibility of Zim-Asset resides with the Office of the President and Cabinet (OPC), which has since been restructured to ensure that the implementation of the blueprint is well-co-ordinated.
While the OPC has oversight responsibility in co-ordination of Zim-Asset, actual implementation is done by line ministries through the cluster system, and ultimately the Zimbabwean citizenry.
Each Government ministry has appointed a Zim-Asset focal point who represents the ministry within the cluster system at technical level to ensure that Zim-Asset implementation is mainstreamed within the various ministries and in Government operations.
Furthermore, it should be noted that the clusters are part of revamped implementation architecture, involving Government, the private sector, civil society and development partners.
Chairpersons, who, from the Government side, are permanent secretaries and from the private sector, are business executives, constitute the Zim-Asset Joint Review Committee, which feeds into the Heads of Ministries Forum and, ultimately, into the Cabinet system.
The successful implementation of Zim-Asset is a top priority of the Government.
In this regard, a robust implementation framework that includes monitoring and evaluation has been put in place.
The modality is critical to improve transparency and strengthen accountability and build a performance culture in both the public and private sectors.
It is ultimately a strong pillar for better policy-making, resource mobilisation and budget planning, decision-making and management.
By coming up with Zim-Asset, Government seeks to address on a sustainable basis, the numerous challenges, namely: since the year 2000, overall cumulative GDP decline of 50 percent by 2008; industrial capacity utilisation of below 10 percent; high imports to meet demand for food and industrial raw materials; erratic power and high cost of capital, among others affecting quality service delivery and socio-economic growth.
During Zim-Asset’s first two years, the economy is expected to register modest growth owing to the 2014/ 15 drought that affected some parts of the country.
Government is, however, optimistic that socio-economic fortunes will improve as a result of various reforms currently underway. Following the adoption of accelerated Zim-Asset implementation, Government and stakeholders will review progress made during 2015 within the framework of the Zim-Asset Prioritised Annual Plan for 2015.
Q: What is the progress in implementing the blueprint?
A: There is some notable progress under the Food and Nutrition, Infrastructure and Utilities, Social Services and Poverty Eradication and in the Value Addition and Beneficiation clusters, where a number of companies have seen increased capacity utilisation and import substitution.
On a recent visit organised by the OPC to selected manufacturing companies and SMEs, (it was established that) there are a number of excellent examples of companies like Cairns Foods which have recorded remarkable progress in increasing their capacity utilisation and regaining some of their market share.
Such developments have a positive impact on the agricultural sector, where Cairns gets its raw materials such as potatoes, soya bean etc.
United Refineries in Bulawayo is taking advantage of the now favourable tariffs to increase import substitution in the cooking oil sub-sector.
In the textile sector, there are a number of companies that have received an injection of new capital, resulting in improved production and targeting of regional export markets.
A number of our SMEs are now expanding their operations, recapitalising and exporting to regional markets. In the social sectors, Zimbabwe has made remarkable progress in reducing maternal mortality and average household income last year increased to US$111, but has sadly taken a dip because of the unfavourable agricultural season in 2015. Infrastructure projects comprising, among others, the Plumtree-Bulawayo-Harare-Mutare and J Mqabuko Nkomo Harare road rehabilitation programmes, are almost complete, while the Victoria Falls Airport upgrade is at 75 percent completion.
With regards to the energy and power sector, Kariba South Expansion is on schedule, while Bulawayo and Harare Thermal power stations are under rehabilitation.
With respect to Food Security and Nutrition, US$38,6 million worth of farming implements have been sourced through the Brazil-Africa More Food Programme under which the first of three tranches has already been delivered. In line with the broader reform agenda under the Public Administration, Governance and Performance Management Sub-Cluster, the OPC is spearheading State Procurement Board reforms to be completed by year-end.
The SPB will be transformed into a procurement standards and guidelines setting authority, while procurement will be decentralised to procuring entities, which will adopt international best practices such as e-procurement in order to enhance efficiency, transparency and accountability.
Following the successful establishment of the High Performance Computer Centre at the University of Zimbabwe for advanced research, including meteorological forecasting and drought monitoring, among others, plans are underway for establishment of a National Information Data Centre to provide a reservoir of information for the entire Government machinery.
Q: What work is outstanding and what challenges have you faced?
A: The major challenge has been the funding gap, with key projects being stalled or deferred. Efforts to mobilise internal resources through better collection of taxes, development of bankable projects and promotion of joint ventures, particularly in the building of infrastructure, are being pursued with some positive results. The private sector itself has been vigorously developing bankable projects and looking for outside investors in order to start new projects or expand existing ones.
In order to generate more investment for our local industry, Government has put measures in place to support import substitution and value addition, resulting in positive developments in the manufacturing sector. Efforts by Government to improve the ease and cost of doing business and engage with the international community will result in more investment in key areas of the Zim-Asset agenda.
Q: What framework has been adopted to secure the necessary funding?
A: Obviously, Government cannot fund the implementation of Zim-Asset on its own because of limited fiscal space.
The following measures are already being implemented under Zim-Asset to augment Government resources:
◆ Efforts by our private sector to grow the economy and participate in joint ventures in order to attract more FDI are beginning to bear fruit. These efforts are being greatly assisted by Government’s commitment to creating an enabling environment for the effective operations of the private sector;
◆ Promotion of FDI via various funding models such as project financing, build-operate-transfer systems, joint ventures/public-private partnerships (The Joint Venture Bill awaits Parliamentary approval) and grant financing.
Q: What role does the private sector have in Zim-Asset’s implementation?
A: The role of the private sector is vital to successful implementatlon of Zim-Asset, as the main drivers of the productive economy. Private sector organisations are well-represented in strategic positions of the Zim-Asset architecture in order to grow the economy, reduce the import bill, increase capacity utilisation and revitalise key economic sectors.
The incentives put in place in the form of tariff measures in order to promote import substitution, for example, in the cooking oil and textile sectors, have been carried out after consultation with the private sector. Government welcomes suggestions from our private sector players, including SMEs, that will result in increased growth in all sectors of the economy, thereby increasing employment and socio-economic growth.
Many private sector companies pay their taxes and, therefore, make a positive contribution to the fiscus.
Q: And what part can the general populace play?
A: Inclusivity is the name of the game in the implementation of Zim-Asset. The bottom line is to increase production at all levels. Villagers producing and marketing horticultural products at Mbare Musika and within their localities are playing their part in meeting Zim-Asset targets.
The Zim-Asset agenda is mainly focused on the development of enablers for socio-economic development such as provision of water, energy, roads and railway and investment in strategic sectors of the economy.
The Zim-Asset agenda has also identified “Low Hanging Fruits”, where small investments can have enormous impact with respect to employment and new industries. For example, Government has encouraged the development of value chains in the growing of fruit to fruit juices and honey; livestock production to leather; and cotton to textile production; that is sectors where Zimbabwe has a strategic advantage.
Participation in these sectors will result in greater volumes and more opportunities for value addition and processing. We would, therefore, encourage individuals to look at the opportunities arising from Zim-Asset and focus attention on key sectors of the economy and see how they can play their part.
There are many people who continue to carry out numerous projects which may be outside the framework of Zim-Asset. This is also acceptable, as Zim-Asset is about providing focused attention to key areas for accelerated socio-economic growth. The OPC is finalising the Zim-Asset Communication Strategy, which will provide the framework for more vigorous communication on activities targeted at empowering the Zimbabwean public to participate in Zim-Asset programmes and projects.
Q: President Mugabe enunciated the 10-Point Economic Growth Plan in his State of the Nation Address. How does this fit into Zim-Asset?
A: It is clear from the 10-Point Plan that key areas of the Zim-Asset agenda have been given more focus.
For example, revitalising agriculture and agro-processing falls neatly into the Food and Nutrition Security Cluster and the utilities sector falls perfectly well into the Infrastructure and Utilities Cluster.
Hence, the President was emphasising the urgent need for the nation to redouble its efforts in implementing key Zim-Asset targets in order to catalyse implementation. The 2016 Annual Priority Plan – currently under formulation – is anchored on the 10-Point Plan. In the same vein, Government is working on the Ease of Doing Business Project to improve the investment climate. The Ease of Doing Business Project will ensure Government is a facilitator of entrepreneurship through legal, regulatory and administrative reforms.
Such reforms include the following:
◆ Establishment of a functional One-Stop Investment Centre with decision-making powers to finalise investment deals;
◆ Reducing the number of days it takes for investors to register a company by streamlining and simplifying processes and procedures;
◆ Reviewing downwards some of the levies and fees chargeable during application for investment licences and permits;
◆ Overhauling of the outdated Companies Act and all pieces of allied legislation which hitherto hindered the ease of doing business; and
◆ Amending the Banking Act with a view to strengthening management, supervision and surveillance of financial institutions as well as protecting depositors.
To ensure that all these are achieved within the time frame pronounced by His Excellency in the State of the Nation Address on August 25, 2015, we have adopted the Rapid Results Approach to fast-track the reform agenda.
Q: Ministries are now required to submit weekly diaries of their activities in implementing Zim-Asset. What success have you registered in this respect?
A: The OPC is co-ordinating communication within Government, and weekly diaries are a way of ensuring that all the activities of the ministries with respect to Zim-Asset implementation are communicated in a coherent and co-ordinated way. The OPC is in the process of co-ordinating the finalisation of a Zim-Asset Communication Strategy in order to have a coordinated approach to communication on Zim-Asset.
The Strategy will be coordinated through communication focal points in ministries who will be collectively responsible for coordinating implementation of the Zim-Asset communication action plans.
Regular meetings of such focal points will ensure we have information on Zim-Asset activities that need to be communicated to the public.
Q: Permanent secretaries and heads of local authorities signed contracts that bind them to specific deliverables under Zim-Asset. What is the update?
A: Performance contracts have been adopted by Government as a management tool to enhance performance of permanent secretaries under the broader public sector performance reform underpinned by the Results-Based Management System. Essentially, the contracts provide benchmarks related to the Zim-Asset implementation matrix and are being used as a basis for monitoring the performance of heads of ministries as a way of improving service delivery.
Q: There is concern that State enterprises and parastatals continue to under-perform. What structures are in place to revive these?
A: There is indeed deep concern across Government over under performance of the majority of our 97 parastatals and/or State enterprises, especially strategic entities such as those responsible for the provision of key services to the nation, including electric power, water, road, rail and air transportation and telecommunications services.
Whereas in the ‘90s, the parastatals/State enterprises sector contributed about 40 percent towards national GDP, today that figure has fallen to a small fraction of less than 10 percent, with only a handful contributing. As a result of the strategic nature of many of those State-owned entities such as the NRZ, Zesa, GMB, Zinwa – to name just a few – it is essential that they function well and as per their mandate if the objectives of Zim-Asset are to be attained and thereby contributing towards sustainable economic growth and development.
Accordingly, Government has prioritised 10 of the most strategic entities which are pivotal to the successful implementation of Zim-Asset namely: Agricultural and Rural Development Authority, Cold Storage Company, Grain Marketing Board, Air Zimbabwe, TelOne, Civil Aviation Authority of Zimbabwe, National Railways of Zimbabwe, Industrial Development Corporation, Zimbabwe National Water Authority and Zimbabwe Power Company.
The reform process, in each case, will begin with a specialised audit, designed to identify structural, operational and management deficiencies and to come up with a range of turnaround options for consideration by Government. In some cases, this might entail dividing some of the existing entities up into smaller, more focused companies.
In other instances, this might mean inviting equity participation by private sector players, including players from beyond Zimbabwe’s borders aimed at attracting the injection of new capital and technology. Safeguarding national interests, of course, will be paramount. Pursuant to the State enterprises and parastatals reform initiative, some of these have already submitted their turnaround strategies for consideration by Cabinet namely ZBC, CSC; Air Zimbabwe and NRZ.
Entities such as Arda have already begun to bear fruit as demonstrated by improved productivity at its Antelope, Ngwezi and Balu Estates in Matabeleland South and North where successful joint ventures are under implementation. Government is also seized with the need to ensure compliance with good corporate governance practices in the State enterprises and parastatals.
To this end, the Public Sector Corporate Governance Bill to give legal effect to the National Code on Corporate Governance in Zimbabwe is being drafted by the Attorney-General’s Office. A Corporate Governance Delivery Unit will be established to enforce compliance with tenets of good corporate governance.
Q: What efforts are there to engage the international community and attract investment?
A: Government recognises the importance of strengthening re-engagement with the international community. Indeed, current re-engagement efforts with both bilateral and multilateral partners, including the African Development Bank and the World Bank, should see the improvement of relations as well as opening up of new financing avenues for the long overdue reforms and development co-operation.
At a higher level, His Excellency the President has been engaging his counterparts at various international fora to attract more investments.
Senior Government officials and private sector players have been attending numerous investment conferences the world-over for the same reasons.
Q: President Mugabe has mentioned the Diaspora Policy. What does this entail?
A: Government recognises the enormous contribution of the Zimbabwean Diaspora, who have continued to support their families through remittances even during very challenging times. Such contributions have also had a positive impact on national socio-economic development.
In this regard, Government is crafting the National Diaspora Policy that clearly outlines the various investment incentives that the Zimbabwean Diaspora would enjoy once they invest in key sectors of the economy.
Many Diasporan Zimbabweans have skills and knowledge that would be of enormous value to the development of the nation if harnessed, coordinated and optimally utilised. The Diaspora Policy will spell out the framework for the engagement between Government and the Diaspora.
The Draft Diaspora Policy will be circulated widely for input from our Diaspora community with a view to having the policy finalised by the end of this year.
Bongani Ndlovu
Online Reporter