Govt, business strike deal

By Golden Sibanda
THE Government and business have struck an agreement that would see them collectively work towards achieving a US$100 billion economy by 2030.
The agreement was reached at the third edition of the KMFS CEO Africa Roundtable 2011 conference held in the resort town of Nyanga last week.
Keynote speaker Vice President Joice Mujuru consented to the proposal and pledged to make a formal presentation to Government.
Finance Minister Tendai Biti as well as fellow ministers Saviour Kasukuwere (Indigenisation and Empowerment), Elton Mangoma (Energy) and Tapiwa Mashakada (Economic Planning) were in attendance, as were company executives.
Secretary for Economic Planning and Investment Promotion Dr Desire Sibanda and Zimbabwe’s former ambassador to China Mr Chris Mutsvangwa were also present.
KMFS chief executive Mr Kenias Mafukidze said, as the organisers of the conference, they were excited that the target would find its way into planning at the national level.
“We now have a common target for the whole country. Companies will now make sure their own business grows at over 15 percent per year. Everyone must aim to grow at 15 percent per year. It is only in that way that we can win,” he said.
Sectoral committees set up during the conference came up with proposals on how business could complement Government to reach the economic target.
Mr Mafukidze said it was inspiring that there was now a broad consensus on the need for collective and focused attention towards a US$100 billion economy.
He said what remained was for every Zimbabwean to see how they could contribute to ensure the target for a US$100 billion economy was achieved by 2030.
Vice President Mujuru stressed the need for the lifting of sanctions, which she said hurt businesses more than politicians and targeted individuals. She said there was need for a shared vision, consultation and dialogue on policy formulation and stamping out of corruption in all spheres of business.
The Vice President said there was need to explore all opportunities available in agriculture and tourism, which offered “quick wins”.
In his address to the conference, Minister Biti singled out 10 factors he said were critical for the country to realise the target for a US$100 billion economy.
He said there was need for a common vision that united Zimbabweans, a new wealth accumulation model to ensure beneficiation of exports, regional integration for economies of scale and enhanced local infrastructure.
The finance minister emphasised the need for macro-economic stability in the next decade, retiring of the country’s US$6,7 billion debt, foreign direct investment and investment in information technology systems.
He also said it would be critical to have strong institutions of governance and economic management for the US$100 billion economy vision to be realised.
Minister Kasukuwere said he was more than confident the 2030 economic target was achievable. Resources would play a huge role towards meeting the target.
But he said indigenisation of most economic sectors would bring about quicker economic expansion to drive the process towards a US$100 billion economy.
The indigenisation minister said gold, diamonds, platinum and coal would be the main anchor for minerals while tobacco would leverage contribution from agriculture.
Minister Kasukuwere said Western economic sanctions would be the biggest impediment towards achieving the US$100 billion economy by 2030.
“If we work together the target that we have set of a US$100 billion (economy by 2030) could be achieved earlier than we think,” said Minister Kasukuwere.
Minister Mangoma guaranteed that Government was doing all it could to ensure adequate power supplies as the economy grows. He said investors had been identified to expand Hwange Units 6 and 7 as well as expand power output by no less than 300 megawatts in the near future.
New projects, for instance the Sengwa thermal power project in Gokwe North, had been awarded contracts as efforts to ramp up power output intensify.
Minister Mangoma also said Zesa Holdings had revived all three small thermal power stations but output remained low.