Online Reporter
Victoria Ruzvidzo
Editor’s Brief
Zimbabwe’s economic train is moving and at this rate nothing seems to have enough force to derail it.
Every other day the country is receiving endorsements locally and from reputable international institutions such as the International Monetary Fund and the African Development Bank lest some of the eternal pessimists might think tirikuzvifonera (we are lying to ourselves)
Please hear me from the outset. I am not saying everything is smooth sailing in the economy and that our tables are filled with milk and honey yet, but its a fact that the train is moving to regions where these are found in abundance.
A 6 percent annual growth rate sounded like a mirage or day dreaming last year as the country was smarting from a nasty drought season, but this is the reality that is almost upon us.
Yes, dipping commodities prices have given us a scare here and there, but this economy is so solid and resilient such that when one sector or sub sector does not perform well others rise to fill the gap.
In his budget review statement a few weeks ago, Finance, Economic Development and Investment Promotion Minister Professor Muthuli Ncube confirmed what we have always stated: That the economy is growing and most sectors are performing well, even beyond expectations in some instances.
All sectors are expected to realise positive growth this year, backed by a favourable agricultural season, stable exchange rates, low inflation rates and increased power generation.
In this instance, we have seen a number of companies generate their own power now.
A few weeks ago, President Mnangagwa launched the US$360 million Zimplats smelter expansion project and a 35-megawatt solar plant at the entity’s Selous metallurgical complex which he hailed as a remarkable milestone in Zimbabwe’s quest for industrialisation,
An increasing number of private firms are coming up with such projects to augment electricity supplies.
Statistics show that agriculture is expected to grow by 21 percent this year while mining will achieve a revised 2,9 percent, manufacturing sector 2,4 percent and tourism sector 2,9 percent against an anticipated 4,3 percent due to declined visitors in the first few months of the year. The figures are rising now.
These statistics reflect an economy that is growing. The train is indeed picking up pace and remains on track. The speed in some aspects needs to improve but there is no doubt that it is moving towards an upper middle income economy that the country has targeted by 2030.
The ZiG has also been stable with its transactions rising to more than 40 percent over the last few months. The demand for the local currency has risen phenomenally, to think that only last year most people didn’t want to keep it in their accounts for a day. They would quickly dispose of it.
This is a great sign in the economy that things are getting better and better.
The hugely successful National Development Strategy 1 will, at the end of this year, hand the baton stick to NDS2.
The five-year programme, launched in 2021 was built on four key pillars of economic growth and stability, social development environmental sustainability and good governance and the rule of law.
A number of targets set under NDS1 have been achieved and even surpassed in many instances as the train advances. Agriculture, mining and other sectors have long exceeded targets, with new ones being set a year or two into the programme.
This has created a solid base for NDS2 to take off on solid ground. This is the part set to take the country to Vision 2030 which intends to achieve an upper middle income economy, creation of a vibrant society where all citizens can thrive and pursue their passions, among other aspects.
Indications on the ground and results registered so far show that there is no stopping on this trajectory.
This week Zimbabwe is hosting a high-powered delegation from Qatar headed by His Royal Highness Sheikh Mansour Bin Jabor Bin Jassim Al Thani, a prominent member of Qatar’s ruling family.
They are here to formalise a US$19 billion investment. This is huge by any measure and is set to propel the economy to another level.
The engagement and reengagement strategy by President Mnangagwa is yielding immense results. The President has proved that this is not just a phrase that reads well, but is a strategy that has seen Zimbabwe attract significant investment over the past few years.
The confidence registered by investors can only augur well for this economy.
The wealth generated and employment created gives impetus to Vision 2030.
We already have Manhize doing wonders in steel production. The US$1,5 billion plant has a daily production capacity of 300 tonnes. Its target is five million tonnes per year.
This plant will not only benefit Zimbabwe, but the region and beyond.
Zimbabwe’s exports are also expected to rise significantly this year to US$8.4 billion from US$7.8 billion. This is a sure sign that the economic engine is firing from all cylinders.
Furthermore, recent international forays by the President to Expo 2025 Osaka where Zimbabwe is participating actively and the recent Tokyo International Conference on African Development (TICAD) in Japan have yielded positive results.
At Osaka Zimbabwe signed deals to boost the tourism sector while the President’s recent trip to TICAD saw this country being selected as a hub for storing food by the World Food Programme. Meetings during the conference were quite beneficial to Africa at large and Zimbabwe in particular.
On the regional front, Zimbabwe is celebrating the President’s successful chairmanship of Sadc. He scored huge in terms of peace building, industrialisation, and in developing institutions that underpin democracy and good governance.
The President was actively involved in the peace initiative for the Democratic Republic of Congo (DRC) were he merged efforts with the East African Community (EAC) to silence guns in the war-torn country.
Locally we have seen the Government initiate strategies such as the review of licensing fees and taxes to create a more favourable operational environment for companies. Increased engagement between the Government and the private sector are yielding great results.
The Confederation of Zimbabwe Industries and the Zimbabwe National Chamber of Commerce have expressed optimism in this economy and have commended the Government for being more responsive to their needs.
This is a game-changer.
On the sporting front the assumption of the IOC presidency by Kristy Coventry is a major victory for this country and assures Zimbabwe’s pride of place on the global arena.
Recently, the Sables rugby team booked a place at the World Cup slated for next year, a major feat that again puts the country firmly on the global sporting map.
One ingredient that continues to work in the country’s favour is the peace that we enjoy. This enables individual and collective progress. It also enables forward planning by business and all stakeholders. In volatile and chaotic environments no one can plan for tomorrow but in Zimbabwe five-year, or 20-year strategic plans are possible. It’s an ingredient that is very critical as the country moves towards 2030.
So much is going well for this country.
Who wouldn’t want to take a ride on such a train? It’s not necessarily moving at supersonic speed, but be rest assured, the train is moving and is gaining much ground.
The beauty of it all is that there is always space for everyone, even the doubting Thomases, and it’s not too late to join. So hop in and let’s ride together. In God I Trust!
X handle: @VictoriaRuzvid2; Email: [email protected]; [email protected]; WhatsApp number: 0772 129 972.
