Online Reporter
Gibson Mhaka
Zimpapers Politics Hub
THE removal of illegal economic sanctions is critical for Zimbabwe to achieve the upper-middle-income status by 2030, a goal that is currently being driven by transformative, game-changing projects spearheaded by the Second Republic under the astute leadership of President Mnangagwa.
While the Government has laid a robust foundation for prosperity, the continued restrictive measures remain a severe hindrance to full economic take-off.
President Mnangagwa has made tremendous progress in engendering socio-economic development and setting the tone for the nation to quickly achieve Vision 2030 goals through various game-changing projects with a direct bearing on people’s lives.
The Second Republic has set Zimbabwe on the road to prosperity through signature projects in critical sectors of infrastructure development, mining and agriculture — guided by the philosophy of “leaving no one and no place behind”.
The development projects championed by the Second Republic are the engine driving Zimbabwe toward its aspiration of becoming an Upper Middle-Income economy by 2030, as outlined in the National Development Strategy 1 (NDS1).
Among the key projects setting this trajectory for national development and Vision 2030 are the refurbishment of the Harare-Masvingo-Beitbridge highway, which is already expediting the movement of people and goods, thereby growing the economy and enhancing regional integration. This is complemented by the sweeping modernisation of the Beitbridge Border Post, which now stands as the region’s most modern land port.
Further complementing these efforts are other signature infrastructure projects, including the construction of the New Parliament Building, Trabablas Interchange, the refurbishment of the Robert Gabriel Mugabe International Airport, the construction of the Lake Gwayi-Shangani (a critical water project), and the expansion of the Hwange Thermal Power Station (a major energy project).
Under President Mnangagwa, Zimbabwe has scored many firsts that have positioned the country on a new socio-economic trajectory.
The Government is prioritising value addition of local resources and optimising agricultural production to ensure the nation becomes a net food exporter and significantly cuts its huge import bill via import substitution.
Vision 2030, launched in 2018, places emphasis on modernising agriculture, boosting manufacturing and mining, expanding energy generation, and building world-class infrastructure to create jobs and improve livelihoods.
President Mnangagwa has challenged Zimbabweans to push beyond the milestones set under Vision 2030 and aspire for even greater socio-economic transformation.
However, in the face of continued illegal sanctions, Zimbabwe remains resolute and unwavering in its commitment, with the echoes of determination resounding in the call for reliance on home-grown solutions, undeterred by external pressures.
Despite the nation’s resolve and the massive infrastructural strides made, experts agree that the continued existence of illegal sanctions is the most significant obstacle to achieving the Vision 2030 economic breakthrough.
Since 2000, Zimbabwe has been under illegal and unjustified sanctions imposed by the United States and its Western allies following the implementation of the land reform programme.
These restrictive measures, notably under the Zimbabwe Democracy and Economic Recovery Act (ZIDERA) of 2001, are detrimental to business growth as they frustrate fresh potential investments and constrain overall economic growth.
Economic commentator and businessman, Mr Morris Mpala, quantified the damaging effects, noting that the restrictions have far-reaching consequences, particularly for the industrial sector.
“The quantified impact is significant, with Zimbabwe reportedly losing over $42 billion in revenue over the past 18 years due to these measures.
The country’s GDP reduction is estimated at $21 billion, and it has lost $12 billion in crucial loans from the IMF, the World Bank and the African Development Bank,” Mr Mpala stated.
He emphasised that the restrictive measures severely limit access to affordable, long-term credit, explaining that sanctions “severely restrict Zimbabwe’s access to affordable, long-term lines of credit from international financial institutions like the World Bank and the IMF”.
This restriction is due to the country’s high-risk profile, which makes it extremely difficult for local businesses to secure essential funding.
The sanctions have also disrupted supply chains and increased the cost of doing business, making Zimbabwean goods uncompetitive.
“Sanctions disrupt the supply chain for essential imported capital equipment, spare parts, and technology, thereby increasing costs and significantly reducing competitiveness for Zimbabwean manufactured goods,” Mr Mpala added.
He further explained that the difficulty in accessing foreign currency leads to higher production costs.
This predicament results in increased costs for imported goods and services, which ultimately means Zimbabwean goods become less competitive in the global market because of high production costs.
Crucially, the restrictive measures impose a “risk premium” on the country.
“The imposition of sanctions creates a pervasive ‘risk premium’ that inflates transaction costs, making it prohibitively expensive for businesses to operate in Zimbabwe,” Mr Mpala said.
This perceived risk hinders foreign direct investment and limits access to international markets.
Economic analyst Mr George Nhepera acknowledged the multifaceted negative impact, noting that the sanctions represent a complex issue with various negative effects on the country’s economy, politics and society, including “reduced access to international markets, increased costs of borrowing, and a resultant shrinkage of our GDP.”
He said sanctions have hindered industrialisation and crippled formal job creation, suggesting the rise of large informal sectors could be a direct result.
Executive director of Citizens Against Economic Sanctions (CAES) Mr Martin Zharare, disputed claims that the measures are targeted, insisting they affect the entire nation by crippling its financial access.
He stated that the core legal barrier remains in place.
“Zimbabwe is under sanctions, under the ZIDERA Act of 2000, imposed by the American Congress, and that Act is still in force. It has never been removed. It is still there.”
The Government has, over the years, sought to have the illegal embargoes removed. President Mnangagwa has also repeatedly called on the United Nations to raise its voice for the removal of illegal economic sanctions, saying the punitive measures had hamstrung development in the country.
In solidarity with Zimbabwe, SADC has declared October 25 as Anti-Sanctions Day, with member States expected to speak against the restrictive measures on the day each year.
As a counter-sanctions measure, Mr Nhepera cited the diversification of trading partners as the most successful domestic mitigation strategy pursued by the country, pivoting towards countries in the East, such as the United Arab Emirates, China and India, as well as others in Eastern Europe. He advised Zimbabwe to strategically improve relations with wealthy nations.
