Economy set for reforms

available to him in his efforts to rescue the economy.
“You will see most of these ideas (from the high-level economic forum) in the next Budget,” said Mr Biti. “We will take the issues to the leadership of the Government.”
But he said there was need for a complete “paradigm shift” and the embracing of a common vision if

Zimbabwe was to realise its political and economic aspirations.
Mr Biti also underscored the critical importance of discussing problems and opined “Zimbabwe had kwashiorkor of dialogue”.

The forum was organised after the sluggish performance, especially of agriculture and revenue, which forced a review of growth and revenue forecasts from 9,4 to 5,6 percent from US$4 billion to US$3,4 billion, respectively.
Rounding up the discussions after the conference, Minister Biti said focus would be on addressing challenges in infrastructure, optimising benefits from mineral resources, land, regional integration, tax reforms, multi-currency, transparency and policies.

Among the central issues to find space in national policy and macroeconomic reforms were measures to deal with power, transport, agricultural productivity, modernisation of accumulation models, inclusive growth, policy predictability and consistency.
Measures to ensure sustainable growth, adopting proper policies, reforms of key economic institutions, clearing debt, efficient cash budgeting, stronger multi-currency regime, re-engaging global lending institutions and sound policies would also be part of future policies.

Broadly, effort will also fall on addressing the dual enclave economy by reducing widespread poverty, growing per capita GDP and sustainable broad-based economic growth.

But sustained economic growth would require a well-functioning and fully capitalised Reserve Bank capable of performing all its traditional statutory roles, and strong and adequately capitalised banking institutions.
It was agreed that the RBZ and the Bankers Association of Zimbabwe should discuss punitive rates and charges.

The forum also admitted that the absence of Government paper was long overdue while proposals were made for pension and insurance firms to participate in availing funding. Economic experts said the country’s mining title system was now outdated and should be replaced.
It was also felt that there was need for fiscal policy clarity on the security of foreign investment, as well as the need to reform aspects of the taxation system, which was said to be too fragmented and loaded with unnecessary taxes.

Other issues the forum cited as needing attention included tightening accountability and dealing with issues around mining super profits, price transfers and thresholds of royalties.

Discussions on the manufacturing sector concluded that the sector, which requires US$2,5 billion in fresh funding to recapitalise, was being hampered by policy inconsistencies.

Confederation of Zimbabwe Industries president Mr Kumbirai Katsande said there “was need to prioritise investment in electricity” because energy “was quite an issue”.

There has been massive rehabilitating of electricity infrastructure at Kariba Hydro Power Station and Hwange Thermal while new projects are on course amid revelations that the current power crisis will be over by 2016.