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WHILE we may differ on other issues, as Zimbabweans we do agree that Zimbabwe needs fixing, and that our current situation is not sustainable in the long-term. The World Bank as reported in this paper says that growth will be choked by the liquidity crisis and low capital inflows. As such growth will only be at a low 3.2 percent from the estimated 3.1 percent last year.
Zimbabwe has had its fair share of problems over the past decade and a half and it is for this reason that Government should go a gear up and make this year an implementation year.
We now all know the Zim-Asset blueprint. We have all seen various strategy documents that have been released such as the Cotton to Clothing Strategy while various policy documents are being worked on.
What is left is implementation in line with the Zanu-PF Congress theme: “Accelerated implementation of Zim-Asset”.
The ruling party informs Government.
Zim-Asset is supposed to run till 2018 at an average growth rate of 6 percent. However, the blueprint has largely been confined to a feel-good-add-on on speeches. It’s fashionable to say that a project is in line with Zim-Asset. The launch of the Kariba Hydro Extension project was a good beginning, we need more such in line with the mega deals struck with China last year.
Government has a huge task at hand which is, however, not insurmountable if there is will power to see through promises and projects. Recall; Health for all; Housing for all; Vision 2020 (now just five years away). Zim-Asset will be impressive and highly successful if all these things even the plans on past blueprints are implemented.
No doubt the country needs a cocktail of measures on the fiscal and monetary front in addition to some acceptance of the economic realities. After failing to attract meaningful levels of FDIs; 2015/16 should be the years that we target to be in the top five FDI destinations on the continent.
There are no two ways about it.
Cash inflows will improve the liquidity situation, up capacity utilisation, grow exports and create jobs in the mid-long term. Once the economy is kicking, contributions to the fiscus will definitely improve and potentially alleviate the country’s debt crisis.
We acknowledge the fact that Government is listening to the concerns of its citizens and would be investors. The first step was the gazetting of the amendments to the Indigenisation Act which made compliance with the law much more flexible. The amendments give powers to line ministries to make the decisions on the indigenisation plan of the investor.
Government believes that the inclusion of the line ministries would take into account the circumstances prevailing in the sector.
Government is also rushing to ensure that the standards French company Bureau Veritas begins operations this quarter as reported in yesterday’s Herald Business. Veritas is a reputable international company which has testing labs across our trading markets making it easier for the country to control the dumping of sub-standard products.
Government will also set up a Competitive Commission which will address the cost structures of all industry while funding for industry will be secured if the Industrial Development Corporation of Zimbabwe is re-organised into a proper investment vehicle.
The Ministry of Finance will carry out a civil service audit as well as a parastatals audit with the help of the World Bank’s ZimRef. This will not only serve to provide guidelines on how the Government can cut its wage bill, it will also highlight areas of inefficiencies. It is good that Government has a priority list which has identified feasible projects with the potential of raising returns.
The Reserve Bank of Zimbabwe has also started the year on a good note, moving in to protect depositors from further distress of not having access to their monies. Interfin and Allied Bank will soon be liquidated.
The aim is to clean up the banking sector by half year. The remaining struggling banks should do the noble thing and surrender their licenses.
There should be no sacred cows.
Online Reporter