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Farirai Machivenyika and Felex Share
The State of the Nation Address delivered to Parliament by President Mugabe yesterday set the tone for development as it identified priority areas that need attention as part of measures to turn around the country’s economy, analysts have said.
President Mugabe delivered the address to a joint sitting of the National Assembly and Senate where he outlined Government’s proposals to boost economic growth.
Among other issues, the President said Government’s focus was on policies that would improve the business climate and attract Foreign Direct Investment.
Investment banker Mr Terrence Mukupe, who is also MP for Harare East, said there was no doubt that the policies — if implemented — would play a vital role in reviving the economy.
“One thing that has affected the growth of the economy is lack of the ease of doing business in the country,” he said.
“Transactions take long to be approved and by the time some are approved the market dynamics would have changed and this affects investment.
“Unsound procurement policies come with a cost to the citizenry as they slow down economic growth and this has to be dealt with.”
President Mugabe said a new Procurement Bill and the urgent overhaul of the Companies Act and all allied legislation had to be dealt with before the end of the year to create a conducive business environment.
Another economist Mr Witness Chinyama said: “The intention is good as it will see investors trickling in. The setting of targets by the President is also a positive development because in the past Government has outlined plans without setting deadlines.
“Investors, before coming into a country, compare the business climate with other countries and hence Government’s focus is now on having policies that do not hinder the ease of doing business. We should also do away with the red tape that has seen projects taking years to be approved.”
Affirmative Action Group president Mr Chamu Chiwanza welcomed the President’s address, saying it would boost confidence in the economy.
“What the President said in his address gives confidence to the economy and identifies areas that are of importance for its growth,” he said.
“Issues to do with value addition of our resources, infrastructure development, reducing red tape in establishing businesses, growth of small to medium enterprises and combating corruption are some of the things the President mentioned that we believe are necessary for economic growth.
“What is left is for business people, especially indigenous Zimbabweans to take advantage of the various opportunities created by Government for us to turn around the fortunes of our economy.
“We also hope that all the arms of the State from Parliament to the ministers will take guidance from the President’s statement and deliver on their mandates.”
Political analyst Mr Goodwine Mureriwa said the President’s speech showed that people should remain focused on the economy.
“The President’s speech showed that Government remains committed to turning around the economy,” he said. “In his address, the President simplified Zim-Asset and indicated the various areas that we should be focusing on.”
Mr Mureriwa added that it was important that Government combat corruption and reform parastatals as these were also key in achieving economic growth and improving people’s livelihoods.
Online Reporter