Manicaland Gross Domestic Product grows to US$3,2 billion

 

Samuel Kadungure
News Editor

 

MANICALAND’S Gross Domestic Product (GDP) has grown to US$3,2 billion from US$1,46 billion in 2018, reflecting diversification of the provincial economy as various sectors are now contributing; unlike in the past when it was driven primarily by just five major sectors.

 

With Manicaland’s contribution to the national GDP at US$3,2 billion, the province is ranked fifth behind Harare (US$9,8 billion), Bulawayo (US$5 billion), Midlands (US$3,5 billion), and Mashonaland West (US$3,5 billion).

 

The statistics were availed by Director for Economic Development in the Office of the Permanent Secretary for Manicaland Provincial Affairs and Devolution, Mr Munyaradzi Rubaya in an interview on Wednesday.

 

The latest statistics show that the national GDP is at US$35 billion.

 

These are the latest figures for 2023 as the data for 2024 is still being processed.

 

Manicaland is ranked number eight in terms of GDP per capita at US$1 519, beating only two provinces — Mashonaland East (US$1 232) and Mashonaland Central US$1265.

 

In 2028, Manicaland was at the bottom at (US$743).

 

The latest GDP per capita for other provinces turned out as follows — Harare (US$3 974), Bulawayo (US$7 333), Mashonaland West (US$1 821), Matabeleland North (US$2 022), Matabeleland South (US$2 100), Midlands (US$2 040) and Masvingo (US$1 558).

 

GDP is the final value of goods and services produced within the geographic boundaries of a given area during a year, and is widely viewed as a key indicator of its economic performance while per capita GDP is a metric that breaks down an area’s economic output per person.

 

It is calculated by dividing the area’s GDP by its population to show how much economic production value can be attributed to each individual citizen, giving a good representation of the area’s standard of living and how much citizens benefit from the local economy.

 

Manicaland’s population grew from 2 037 762 in 2022 to approximately 2 098 110 in 2023, reflecting a growth rate of about 2,9 percent.

 

This translates to an increase of roughly 60 348 people.

 

On a more positive note, the provincial economy registered a GDP growth rate of 6,6 percent in 2023, making it the second-best economy after Matabeleland North at 12,6 percent.

 

“This indicates that we achieved significant growth in the production of goods and services, surpassing all other provinces except Matabeleland North.

 

Our province boasted the second-best growing economy nationally, driven by key sectors — accommodation, food, and services at 20,6 percent growth; information and communication (16,4 percent); education (10,6 percent), agriculture (10 percent), transport and storage (10,4 percent).

 

“The major contributors to the provincial GDP were agriculture 16,7 percent, mining and quarrying (10,7 percent), wholesale and retail (9,6 percent), manufacturing (9,2 percent), real estate (9,2 percent), public administration (9,1 percent), transport and storage (8,6 percent) and information and communication (8,4 percent),” said Mr Rubaya.

 

“As you can see, our economy is diversifying as evidenced by the various contributions of different sectors compared to only five sectors that were major drivers of the economy in the past. We now have approximately 12 major drivers, up from just five in 2022,” he said, adding that productivity is a key driver of economic growth, and the province should increase production and add value to its mining and agricultural products.

 

“Going forward, we aim to prioritise value addition for mining and agricultural products produced in the province. Our desired position is one where manufacturing, which involves value addition, contributes over 30 percent of the provincial GDP,” said Mr Rubaya.

 

Manicaland is also endowed with an assortment of minerals, timber and tea estates, tourism facilities, as well as adequate water for agriculture, among other natural resources.

 

The province also has a comparative advantage in the tourism sector.

 

Mr Rubaya emphasised on the need to process phosphate produced in Buhera and cutting and polishing of diamonds produced in Chiadzwa in Manicaland to improve the provincial GDP.

 

The cutting and polishing of diamonds and processing of phosphate are taking place in Harare, resultantly helping Harare grow its GDP at Manicaland’s expense.

 

“We are the only province in the country that produces phosphate, which is the base mineral for basal fertiliser production, but that phosphate is not being processed in Buhera or Manicaland. As such, we are helping Harare grow its GDP.

 

We could better anchor our agriculture, which is our major contributor to the GDP, if the value addition was done locally,” said Mr Rubaya.

 

Manicaland’s proximity to the Sea Port of Beira also makes it an ideal investment destination for transport, logistics and distribution, he said; adding that vast tourism opportunities in the province were not being fully exploited.

 

Manicaland is also the only source of timber in the country, whether for furniture or construction, but no meaningful value addition is taking place in the province, with the bulk of the timber exported in its raw form.

 

“Our unique climate, geology and landscape, unique features of flora and fauna can attract tourists in the province. Again we have our diversified agriculture ecological system where we have all the natural regions suitable for specialised agriculture. Our niche is horticulture — that is coffee, targeting at least 15 000 per year, macadamia, bananas, sugarcane, an assortment of fruits and floriculture,” he said.