MTP review set for next month

economy, reduce poverty, create jobs, maintain macro-economic stability and restore the economy’s capacity to produce goods and services competitively was launched in July last year.
The MTP builds on the foundations of the Short Term Economic Recovery Programme (February-December 2009) and the three-year Macro-economic Policy and Budget Framework launched by Finance Minister Tendai Biti last year.
But Government has so far failed to attain targets set in the blueprint as the economy continues to underperform, mainly due to inadequate funding of key sectors.
About US$9,3 billion is required if the targets set in the MTP are to be met. Analysts say the success of economic policies such as the MTP hinges on the availability of funding.
They said the current liquidity challenges would pose a serious threat to the success of the MTP.
Unfortunately, Zimbabwe has limited options to address liquidity challenges, in the absence of an active monetary policy, good performance of the export sector and substantial foreign direct investment.
Some of the priorities of the blueprint include macro-economic stability, infrastructure and human-centred development, employment creation, development of SMEs, information communication technology, science and technology and good governance, removal of sanctions and combating corruption.
Also at the heart of the policy are investment regulations, co-ordination and promotion, natural resource utilisation, poverty reduction and gender mainstreaming, development energy infrastructure and rural development.
The MTP targets an average annual economic growth rate of 7,1 percent during the five-year period and an average annual employment creation of 6 percent.
It envisages a current account deficit of 5 percent of Gross Domestic Product by 2015, foreign exchange reserves of at least three months import cover and double-digit savings and investment ratios of 20 percent of GDP.