Chronicle Editor
Rutendo Nyeve, Sunday News Reporter
THE Government has assured the nation that it will expedite the implementation of people- oriented and pro-poor policies particularly in the education and health sectors to augment livelihoods through contributions from domestically mobilised resources.
In an interview with Sunday News recently on the 2024 economic outlook, the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube said while economic growth is expected to be slower in 2024 with a growth trajectory of 3.5 percent expected, other sectors other than agriculture are expected to drive the economy.
The domestic economy was projected to end the year with a growth of 5.5 percent, a slight upward revision from the August projection of 5.3 percent, on account of better-than-expected output in agriculture, in particular, tobacco, wheat and cotton.
“The economy has recovered; we are one of the fastest growing economies in the region. But we are aware that next year, because of the weather patterns (El Nino effects), the economy will be slower. As such, we expect a growth trajectory of 3.5 percent. But we think that is the minimum, we should be able to do better than that. Yes, El Nino might impact on agriculture but the rest of the sectors should do well.
“The mining sector is doing well with strong investment there and so is the manufacturing sector. Tourism is recovering very well and we are learning a lot as a country in terms of earnings as such every sector is going well and we are on track towards achieving vision 2030,” said Prof Ncube.
According to the 2024 national budget, the positive growth of 3.5 percent in 2024 will be driven by mining (+7.6 percent) and accommodation and food services (+6.9 percent), while the agriculture sector is projected to contract by (-4.9 percent).
In the main, industry and services sectors are expected to drive economic activities in 2024, with growth rate of 6.3 percent and 4.1 percent, respectively, which will, however, be weighed down by the 4.9 percent contraction in the agriculture sector.
“The policies that I have explained and enacted through the 2024 national budget can only help to boost what I am talking about through domestic resource mobilisation initiatives. The issues that we have introduced through the 2024 budget will go a long way in supporting Government programmes and ensuring that those who are poor and those who are in the low income bracket are catered for. If we look at the Pfumvudza/Intwasa programme as an example, it is a pro-poor programme, it is supporting those who need social protection through the production approach,” said Prof Ncube.
He said the nation was going to witness a more people-oriented approach in terms of implementation of policies where priority would be given to health and education sectors.
“We are investing in the education sector, and the sector is receiving the highest share in the budget which is also a pro-poor approach. We also have the health sector which is well supported, the health margin is going way beyond what we have allocated in the budget. We have also borrowed funds abroad to support the health sector. For example, in Cowdray Park we have the polyclinic which was financed through a loan which we sourced from South African banks and we continue to roll out these health facilities.
As I speak Cowdray Park, Ngwane in Zvishavane, one in Chimanimani have been done and now we are looking at two districts which are Hwedza and Umzingwane in Matabeleland South which are progressing well. So far 30 of these clinics as well as district hospitals are some of the investments in the health sector.
In the 2024 budget we have also introduced a sugar tax on sugar drinks and it will go towards creating a cancer fund so that we can purchase cancer diagnostic equipment. As such I feel the budget is people oriented and pro-poor and will help improve livelihoods,” said Prof Ncube. — @nyeve14
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