Chronicle Editor
Zimbabwe’s economy which is on a recovery trajectory is expected to grow by 3,5 percent this year according to the International Monetary Fund.
The IMF commended Government for addressing the macroeconomic imbalances while also ensuring that the vulnerable members of society are supported.
It also applauded Government for its swift response in fighting the Covid-19 pandemic which resulted in fewer Covid-19 related deaths compared to other countries.
After concluding the Article 1V Consultation with Zimbabwe last week, the IMF said there were positive signs of economic recovery.
“Executive directors welcomed the positive signs of economic recovery following two years of deep recession,” said IMF. It said given the challenges that remain, there is a need for authorities to implement the necessary reforms that would foster higher, more inclusive growth and pave way for re-engagement with the international community.
It said the fiscal policy should aim to restore macroeconomic stability and create fiscal space for priority spending.
The fund’s executive directors emphasised the need to enhance revenue mobilisation including broadening the tax base.
The IMF directors said Government should accelerate reforms of state-owned enterprise (SOEs) and enhance fiscal control. What is encouraging is that most of the recommendations of the IMF are already being implemented which means we are on the right track.
The process to reform the operations of SOEs has already started and Government has introduced performance contracts for heads of parastatals and SOEs to ensure the entities are run efficiently.
The IMF’s positive report on Zimbabwe’s economy should boost the confidence of both local and foreign investors.
Zimbabwe’s industry is on a recovery and growth trajectory and this is largely as a result of a stable operating environment as observed by the IMF.
The country has therefore done well despite the Covid-19 pandemic challenges. The manufacturing sector has shown that it has great potential for growth and the challenge is to continue creating an enabling operating environment and providing the required resources.
The sector has been substituting products that used to be imported thereby saving the country the much needed foreign currency. This is as it should be.
President Mnangagwa has challenged science and technology students at the country’s institutions of higher learning to play a leading role in the import substitution.
We want at this juncture to implore all sectors of the economy to maintain the momentum so that the nation realises its vision of an upper middle income economy by 2030.
Online Reporter