Call for greater research, innovation to boost economy

Delivering a keynote address at the Zimbabwe International Business Conference at the ongoing Zimbabwe International Trade Fair in Bulawayo, VP Mujuru said research and innovation have potential to unlock value in many sectors of the economy, among them agriculture and mining.

 

In a speech read on her behalf by Mines and Mining Development Minister, Dr Obert Mpofu, VP Mujuru also said economic growth must be sustained and equitable to prevent social instability.

She said in the mining sector, research, innovation and value addition in minerals like diamonds, gold, coal and methane gas have enormous multiplier effects on the economy.

“Innovation, research and development in the mining sector for a rich resource-based economy like Zimbabwe would produce massive benefits for the country,” she said.

“Specifically, Zimbabwe would produce a whole new industrial base ranging from composite materials production, catalytic converters, rechargeable and battery cells manufacturing, among others. “Furthermore, a jewellery industry of both gold and diamond could open a whole new area of growth.

“Methane gas and coal would open up a whole chemical industries sector, while silica mining, coupled with rebuilding and consolidating of the local glass production creates another possible frontier of development.

“Put differently, the option of new industrial zones based on the resource on abundance in a particular area of the country can actually see the whole country experiencing unprecedented economic growth,” she said.

The one-day international business conference was held under the theme “Investing locally, building local capacity and reaping dividends globally: Turning a rich resource base into an industrial hub.”

The conference is a joint effort by the ZITF Company, National Economic Consultative Forum, Ecobank and Marketers Association of Zimbabwe.

VP Mujuru said the country could realise its growth projections through striking partnerships with countries such as Brazil, Russia, India, China, South Africa, South Korea and Malaysia which have registered rapid growth.

She said given Zimbabwe’s rich resource base, the country must have more information about them, their management and exploitation. To that end, work is under way to set up a national minerals exploitation company.

Education, employment and attention to national food needs, VP Mujuru said, help resolve the prevailing social and economic problems.

“To address these challenges,” she said, “we need a robust economy that provides real opportunities for our citizens so that they become a key component of the supply and demand equation. On the supply side, they will expand the local production capacity and help increase the availability of goods at affordable prices.

“On the demand side, they will provide a huge market for local production and help boost trade, improve people’s lives and become more productive.”

Turning to sources of income to boost the economy, she urged fiscal authorities to design tax systems that positively influence economic growth beyond simply raising revenue.

She also called for more private sector involvement in infrastructural development. The Diaspora, she added, could also be another source of revenue to propel economic growth.

“In 2010, remittances in the world were worth $325 billion,” said VP Mujuru.

“The African Diaspora alone was sitting on $50 billion in savings that could be invested in bonds. Zimbabwe has a fair number of nationals in the Diaspora.

“My challenge to our planners today is for them to formulate policies and strategies that encourage investments at home by such foreign-based nationals.”

Public capital could also be used to stimulate research and development through advance market commitment, a system whereby buyers are guaranteed a product before it is developed.

She said Zimbabwe was rich in human and natural resources and what needs to be done was to develop strategies to transform the country into an industrialised country with double-digit growth rates.

“With the prevailing stable macro-economic environment backed by a steady currency, the time to transform the economy is now,” she said.