‘Long-term view critical for Zim economy’

Michael Tome

HARARE – Zimbabwe should identify and establish long term economic potential areas for the country to realise a robust economy from now going into the future.

This is not a new concept in building economies as it has been undertaken in Latin America and East Asian countries.

Zimbabwe has great wealth in natural resources that comprise of vast reserves of gold, platinum and good agricultural soils for commercial agriculture.

Backed by sound economic policies these areas can be used to boost industrial development of the country. 

In an interview with this publication economic consultant Professor Ashok Chakravati indicated that Government should capitalise on abundant locally produced resources and promote industrialisation of their value chains for maximization of production.

“As Zimbabwe we need to identify high yielding resources like natural resources in mining sector, tourism, our rich arable land for agriculture and make the most of that.

“Once you identify these key areas, build a policy and make these things become real to realise high productivity and profitability in those few areas.

“It has been done in Latin America, East Asia, and Mauritius and their economies have phenomenally progressed,” said Professor Chakravati.

He said Zimbabwe also has great potential in services sector which could be transferred to some other countries, mainly considering the quality of the country’s education system and constant chaining out of nurses in the health sector.

“There should be conversation between stakeholders and policy makers and make health and education sector services be recognised as economic potential areas, why not develop and make our universities attractive to the outside world and as well export our abundant nurses to parts of the world that have shortage ,” he added.

According to United Nations Conference on Trade and Development (UNCTAD) report, African services exports and imports totaled $271 billion in 2012.

Though Africa is a marginal player in global services trade, with an export share of only 2, 2 per cent, the services sector represents an important source of export revenue that should be further exploited if Africa is to assume a role as a global player in services trade.