Online Reporter
As Zimbabwe’s economy accelerates over the next five years, there is a need to upgrade the emphasis of this growth following the incredibly successful five years of the first National Development Strategy (NSD1), made possible by effective transitional measures from the Second Republic.
Simply repeating what has worked so well will not elevate Zimbabwe up the development ladder, which requires a more complex and sophisticated economy.
We must utilise the vast increase in secured supplies of mining and agricultural raw materials generated during NSD1.
It is crucial to maintain the gains of the past five years, as these will underpin the next steps needed to elevate Zimbabwe into the ranks of upper-middle-income economies.
Planning and implementation must ensure a fair distribution of these gains to create an upper-middle-income population, avoiding a society characterised by stark inequality with a few extremely wealthy individuals and many very poor ones. National and social goals must align.
Following the successful transitional stage initiated at the start of the Second Republic, NSD1 has seen Zimbabwe achieve significant progress in the primary sectors of mining, farming, tourism and infrastructure, alongside a resurgence in the heavy industrial base that had largely declined early in the century.
While NSD1 included industrialisation, value addition, inclusive growth and mobilisation of local finance and resources, these aspects will come to the forefront with the implementation of NSD2 next year, as we build on our achievements.
Historically, much industrialisation focused on import substitution, which is not always the most efficient development approach, especially under heavy protectionism that allowed inefficiencies to persist.
As we transitioned into a more competitive economy, industrialisation centred on basic consumer goods — an advancement considering these goods were often produced from local agricultural raw materials.
With most food items on our shop shelves now locally made, we need to expand industrialisation to include a wider range of products and leverage the opportunities provided by the African Continental Free Trade Area.
African consumers have expressed a clear desire for quality products at competitive prices, guiding our direction.
Zimbabwean pioneer exporters have succeeded by meeting these dual conditions, showing us that this approach works.
We also recognise what other African countries can offer Zimbabwe, capitalising on their strengths.
Fortunately, Africa’s industrialisation appears to be increasingly focused on quality and the processing of local raw materials.
Value addition has been a major element of Zimbabwean Government policy, aiming to export more than just basic commodities.
Miners are advancing with the commissioning of processing plants, following the example of gold, which we export as pure bars rather than ores or semi-processed materials.
Gold is our leading mineral not only due to the volume produced but also because we strive for the best global prices.
Platinum, lithium, chrome and nickel are moving in the same direction to ensure we receive full value.
Our new heavy industry will utilise Zimbabwean steel to manufacture products, representing a further step up the value addition ladder from iron ore, coke and limestone.
Agricultural products will also increasingly undergo processing before sale.
For instance, tobacco has some initial processing in Zimbabwe to ensure proper grading and moisture control, with the goal of exporting cut leaf and eventually creating and exporting Zimbabwean cigarette blends as free trade opens new markets.
While foreign investment is crucial for building the Zimbabwean economy and must continue, we also need to mobilise more domestic capital.
This is not an either-or situation; we desire both sources of investment to expedite progress.
We have seen domestic capital mobilisation become vital for infrastructure development, such as our road network and irrigation dams, and in expanding some of our more mature industries, driven by the private sector and the innovative efforts of universities and Government.
As the economy grows, more domestic wealth will be available for investment, which is essential for industry, tourism and other sectors where numerous investment opportunities arise.
Both foreign and local investors can participate and profit.
Economic growth is a national endeavour that requires sound Government policies to facilitate progress.
However, individuals building factories, opening hotels, or commissioning farmers to grow new crops are primarily motivated by their own business interests.
Their success drives them to push forward, benefiting the broader economy in the process.
