Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
GOVERNMENT has attributed the 7,8 percent national Gross Domestic Product (GDP) growth attained last year to a resurgence in agriculture and mining sector as well as a general stable macroeconomic environment.
In the 2020/2021 agricultural season, 2,7 million tonnes of maize was produced against a national requirement of 2,2 million tonnes.
Beef production increased by 33 percent.
In his post Cabinet briefing on Tuesday ICT, Postal and Courier Services Minister, Dr Jenfan Muswere said the implementation of National Development Strategy 1 has largely been successful despite the adverse effects of the Covid-19.
“On the economic growth front, the national GDP growth for 2021 stood at 7,8 percent, mainly on account of the good 2021 agriculture season, higher international mineral commodities’ prices and a general stable macroeconomic environment that enabled the domestication of some value chain and better management of the Covid-19 pandemic,” he said.
Minister Muswere said Inflation significantly declined from 837,5 percent in July 2020 to 60,7 percent in December 2021.
A target of 5,5 percent GDP growth has been set this year which according to economists is achievable given the stable macro-economic environment.
To buttress the significance of agriculture as the country’s economic mainstay, beef production rose sharply against set targets.
“Production of milk over national requirements stood at 46 percent. Beef production as a percentage of national requirements stood at 79 percent against a target of 46 percent resulting in a positive variance of 33 percent,” said Minister Muswere.
In order to improve animal nutrition, Government has put in place the Livestock Growth Plan.
The Livestock Growth Plan seeks to grow the sector to US$1,9 billion by 2025.
The Agriculture and Food Systems Transformation Strategy also anchors and propels Zimbabwe towards Vision 2030 which envisages to attain an upper-middle-income economy.
Under the scheme increasing the cattle numbers from a 2019 baseline of 5,4 million to 6 million in 2025 with a beef production of 90 000 tonnes and milk production from 79,9 million to 150 million annually are some of the targets of the Livestock Growth Plan.
The foreign currency auction platform introduced in June 2020 also aided to the stabilisation of the economy.
“The Auction System ensured a stable exchange rate and an uninterrupted supply of foreign currency to the economy.
“The external sector remained favourable due to inter-alia strong performance of exports, diaspora remittances as well as other services of foreign currency in the economy,” said Minister Muswere.
A reduction in tourist arrivals was recorded largely due to Covid-19-induced global travel restrictions which cost the sector an estimated US$690 million as the industry suffered reduced demand for leisure services due to reduced traffic.
Dr Muswere said a total of 370 676 tourist arrivals were recorded against a target of 1,1 million during the first half of 2021.
“Regarding tourism investment, US$141,2 million was recorded against a target of US$280 million.
“Performance on investment is attributed to Tourism rebates put in place by Government to assist the growing appetite to invest in the tourism sector,” he said.
With regards to the Harmonised Social Cash Transfer programme, Dr Muswere said Government continued supporting 78 000 households while Development Partner Unicef is reaching out to 9 725 households with
Emergency Social Cash Transfers.
— @nqobilebhebhe
Online Reporter