Business Forum: Zimbabwe is very rich

ESTIMATING a country’s economic well-being is not an easy task throughout the world.
There are major differences over what economic indicator could best highlight the economic performance of a country, from measuring the gross domestic product (GDP) to the human development index.
However, it might seem that those who have appropriated to themselves the intellectual high ground to judge other economies are convinced that Zimbabwe is one of the poorest countries in the world.
Of course the statistical basis of such assertions has and continues to be questioned, especially in the absence of an extensive study to establish the statistical underpinnings of some of these indicators.
What, however, cannot be questioned is that the country has been under intense pressure from foreign countries that are hostile to the ideological leanings and policies of the Zimbabwean Government.
Despite such ill-intended hostilities, the country’s economic fundamentals are still strong.
The local banking sector is still solid and strong.
Non-performing loans are declining and could soon reach the internationally-recommended benchmark of 5 percent.
Assets, in terms of bank deposits, are also growing.
It cannot be disputed that the country’s local infrastructure, though it needs urgent intervention, can measure up with competing infrastructure in the region, excluding South Africa.
From 2009 to date, there have been massive investments in dam construction and rehabilitation, road construction and thermal and hydro power projects.
China’s renewed efforts to fund the same will arguably be a game changer going forward.
But the trials and tribulations of the past 15 years have impacted on Zimbabwe.
In trying to react to very trying circumstances, Zimbabweans have evolved as an entrepreneurial people.
They are now adept in handling a turbulent economy and difficult economic cycles.
Most of the economic challenges that are now visiting some of the countries in Africa – unstable currency, unreliable exchange rates and critical shortages in key sectors of the economy – might be new to them, but they cannot be new to Zimbabwe.
As a country that was first to push the envelope in terms of empowerment, the country has become a vanguard in defining new terms of African freedom in the form of economic freedom.
It has slowly been inculcated in the local people, including a reluctant intelligentsia, that taking charge of one’s means of production is a sure way forward.
Inevitably, locals are now very business-minded.
However, what cannot be escaped is the fact that there are bad apples that are a drag to some of the local policies defined by Government.
Regardless of the high unemployment rate, Zimbabweans are still a very industrious lot.
It is an established and well known fact that when compared to other African countries, the country has vast mineral resources, great tourist destinations, enviable human resources, high ICT literacy rates and an organised infrastructure.
These are the ingredients for economic take off.
But it is the minerals that have the potential to be a trump card for the country to chart its new developmental path.
Zimbabwe has more than 60 mineral groups that are at various stages of exploitation.
In terms of natural resources per capita, Zimbabwe favourably ranks with other countries in the region.
In as much as exogenous factors have played a big part in slowing down progress, there are internal issues that have to be addressed for our economy to flourish as some of the issues are beyond our control.
This column has previously mentioned critical issues on corruption, greed and their effects to business.
It’s time the authorities take heed.
Government has to harness the country’s energies and strengths in order to pave a new way for development.
Recognising Zimbabwe’s wealth and potential, there has been a lot of interest from traditional cooperating partners of late.
But with all this international interest on Zimbabwe, it is high time business get backs to basics.
No nation develops without an ethical philosophical foundation.
No serious business person likes doing business with a crook or greedy person because there is an inherent risk in doing so.
A new work ethic is crucially needed.
The structural foundations of such a foundation is already in place.
This year, Government launched the National Code of Corporate Governance which if successfully adhered to, has the potential of cleansing the private and public sectors.
The Bill is before Parliament and there are many reasons to be hopeful.
Zero tolerance to corruption should be practiced.
Qualified and competent professionals should now be appointed to key positions in public companies.
Stephen Yeboah of Africa Progress Panel says despite the investments pouring into Africa, poverty is widespread, education and health infrastructure is inadequate, and millions of children go to bed hungry.
Why such a disconnect?
One reason is that many investments are not made in a transparent and accountable manner.
As a result, African governments lose huge sums of money.
Many of these investments are going into sectors that are not necessarily improving Africans’ livelihoods.
The oil, gas and mining sectors tend to operate in enclaves that have weak links to the local economy.
Africa often gets unethical investments that stifle efforts to foster inclusive growth, reduce poverty, and enhance food and nutrition security.
Zimbabwe needs to invest more on energy, agriculture and infrastructure.
Ethical investments in agriculture are particularly important as agriculture’s potential is huge.
With two-thirds of Africans depending on farming, boosting agricultural production is an effective way of reducing poverty and inequality.
Former UN secretary General Mr Koffi Annan once said, “We have to significantly boost our agriculture and fisheries, which together provide livelihoods for roughly two-thirds of all Africans.”
As we enter 2016, let us as Zimbabweans remember that we are very rich.
Our destiny lies in our own hands.
It is our actions which will determine what we will be.
The paradox of a resource-rich continent that ironically is still grappling with poverty has to be banished.

Taurai Changwa is an Articled Accounted and ACCA finalist. He is the managing director of SAFIC Consultancy. He writes in his personal capacity and can be contacted at [email protected] or whatsapp on 0772374784.