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Ishemunyoro Chingwere
Business Reporter
Economists and market watchers have described Government’s economic blueprint, the National Development Strategy 1 (NDS1), as a solid compass to usher stability and foster economic growth.
President Mnangagwa launched NDS1 on Monday and it is expected to guide the country’s economic framework from 2021 to 2025 thus succeeding the Transitional Stabilisation Programme (TSP).
In separate interviews, economists who spoke to The Herald were in concurrence that NDS1 has the potential to spur Zimbabwe’s growth trajectory.
Economist Professor Gift Mugano said NDS1 is coming at a perfect time when the country is already enjoying macro-economic stability.
“They are a couple of key facets that put NDS1 on a pedestal for success which you must take note of from the outset,” said Professor Mugano.
“The first issue is that NDS1 is coming at a very good time when the economy is already enjoying stability and what is happening is that it is simply looking at consolidating that stability.
“Stability is very important for economic growth to an extent that I can tell you that the biggest stimulus package that Government can give to business is not money, but stability in the macro-economic fundamentals.
“There is also ownership of the blueprint from key stakeholders where you realise that this is a document which is a culmination of extensive consultation as opposed to a situation where one feels like Government is donating ideas, so how can business then resist its own blueprint?” queried Prof Mugano.
Professor Mugano said NDS1 consolidates ministerial strategies and provide funding mechanisms.
Some of the line ministry strategies include the mining sector 2023 milestone which is expected to drive mining sector annual exports from US$2, 7 billion in 2017 to US$12 billion from 2023.
In agriculture, Government is pushing the Agriculture and Food Systems Transformation Strategy that is expected to grow the industry to US$8, 2 billion by 2025 while the tourism sector is running with the National Tourism Recovery and Growth Strategy (NTRGS) which is targeting US$5 billion by 2025.
Professor Ashok Chakravarti, who is also a member of the Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee said with a clear commitment at continuing to tame Government expenditure and budget deficit, NDS1 will be able to stimulate economic growth.
“It is for Government to set up the enabling environment and that is what the NDS1 seeks to do, to have the fiscus that is under control,” said Prof Chakravarti.
Another economist, Persistence Gwanyanya, said with a target to grow the manufacturing sector, NDS1 had the capacity to foster rapid employment creation.
“A country can only deal with its unemployment problems if it fosters manufacturing sector growth and this is a portion of its GDP,” said Mr Gwanyanya.
“If you look at our current return, we are at 10 to 15 percent of the GDP and this explains the high level of unemployment. We need to get to about 30 percent which is what obtains in South Africa and this is exactly what NDS1 will address,” he said.
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