‘Let’s address economy to solve vending challenge’

Martin Kadzere in VICTORIA FALLS
THE proliferation of vending activities on the streets across the country is a symptom of an economic challenge Government needs to stamp out, Finance and Economic Development Minister Patrick Chinamasa has said.Addressing more than 300 delegates attending the Zimbabwe Association of Pension Funds 40th annual congress in Victoria Falls the minister said Government needed to address challenges in the economy.

“When I look at the vending issue, it is a symptom to a problem and unless you address that root of the problem, you will remain with it, Minister Chinamasa said.

“Personally I think we need to address the economy. We need to address the root causes of why people are now in the street,” he added.

Minister Chinamasa said the root cause of widespread vending in the country was the drastic drop in opportunities for alternative formal employment.

The Finance Minister said that there had been structural changes in the economy from the formal sector to the informal and the people that are seen vending on the streets were there seeking means for survival.

“So we need to address and make sure that the decline in our economy is reversed. But I don’t think we should use force to correct an economic situation.

“We need to use market friendly ways and market friendly ways call for more investment in manufacturing, more lines of credit in productive sectors.

“Once the industry starts growing, you will find out that those people in the streets will vanish. There are not there on their own choice. Let us not address the symptom, let’s go for the root cause of the problem,” he said.

Speaking at the same event Minister Chinamasa said pension funds should consider coming up with long-term financial instruments to fund infrastructure development and support industry as well as small to medium enterprises which have become the biggest employer in the economy.

He said that pension funds should adopt a long-term view by playing an instrumental role in reviving the ailing domestic economy given the industry’s potential in promoting the country’s sustainable economic development.

“Looking at the life cycle and inter-generations models, I am of the strong view that the industry players can play an important role in resuscitating the capital market, especially for the long dated paper which is key to infrastructure development and funding for the industry,” he said.

“I am humbly urging you to have a re-look at your investment philosophies, because they may be out of sync with reality. There are structural shifts in our economy; the small to medium enterprises have emerged as an important sector while big institutions continue to struggle.”

The minister said pro-development investments were lacking in the economy as pension funds continue focusing on real estate and equities.

He said the funding of infrastructure projects and the industry would have significant multiplier effect.