admineconomist Mr Joseph Mverecha said for the country to achieve economic growth there is need for authorities to take a cue from other countries in the region and abroad.
He said this on the sidelines of the Zimbabwe National Chamber of Commerce annual congress in Nyanga last week.
“The economy requires significant capital flows, capitalisation of firms, working capital financing, new equipment financing, and new projects, for example in energy and infrastructure.
“Financial intermediation is at the heart of economic growth. Economies grow due to investment or FDI, and examples include China, India, Peru, South Korea, and Taiwan.
“To achieve national imperatives, there is also need for the authorities to promote export growth, secure credit lines, engagement of the international community, external debt and arrears resolution, address banking sector vulnerabilities, capacitating the central bank, and lender of last resort function,” he said.
He said there is need for financing of the economy’s key enablers. Mr Mverecha cited the National Railways of Zimbabwe that requires around US$200 million for recapitalisation, while the energy sector needs about US$7 billion.
“Capital is the principle thing, it creates a platform for the country to create solutions.
We also need to create the right institutional frameworks as well as fight corruption,” he said.
He also called for a broad approach to engaging the international community, saying there was need to improve the country’s relations with the West, while at the same time drawing lessons from the East.
Specifically from China, he said, Zimbabwe could learn from its well-defined economic objectives, economic growth and poverty reduction and global dominance.
It could also learn from its own mistakes, cultural revolution, Understanding the global dynamics, far sightedness/ focus on long term, mastery of international engagement, and investment in education, health, research and development.
Former ZNCC president Mr Trust Chikohora said the One-Stop investment facility was a timely development as it functions to improve the local investment climate.
“It’s quite a welcome development, it is a demonstration of commitment to improving the doing business environment in Zimbabwe as it enhances the country’s competitiveness as a prime investment destination in addition to the tremendous opportunities it has on offer in all economic sectors.
“It however needs to be fully resourced and implemented,” he said.
Online Reporter