MTP targets jobs, economic growth

an effective implementation matrix, pragmatism and broad-based socio-economic development.

The US$9,3 billion blueprint builds on the foundation laid by the Short-Term Economic Recovery Programme and three-year Macro-economic policy framework launched in 2009 and last year respectively.
Economic Planning and Investment Promotion Minister Tapiwa Mashakada, said the plan was a summary of the policy framework, projects, investment opportunities and programmes to grow the economy and create jobs.

“The plan seeks to achieve broad-based economic growth, increase empowerment, create decent jobs and improve economic and social well-being of our people,” he said.
Its priorities include macro-economic stability, infrastructure and human centred development, employment creation, development of Small to Medium enterprises, 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.
The policy document also targets budget deficit of less than five percent, reducing sovereign debt to 60 percent of GDP by 2015, poverty reduction to meet Millennium Development Goals and good interest rate regime.

Vice President Joice Mujuru, Prime Minister Morgan Tsvangirai and Deputy Prime Ministers Arthur Mutambara and Thokozani Khupe joined several Govern-ment ministers, permanent secretaries and officials for the launch.

Representatives of other countries, regional and international agencies and local business lobby groups from all sectors of the economy were also present.
While most speakers hailed the MTP as a brilliant policy document they warned failure to ensure total implementation could result in the plan failing.

World Bank senior country economist Ms Nadia Piffatti, said Government should ensure that there is a distinction between the vision and the plan itself.
She said the vision should be centred on ambition while a plan should focus on achievable goals.

Ms Piffatti said the goals must be achievable and shared to ensure a virtual “buying in”.
She emphasised the need to ensure policy soundness, state efficiency in expenditure, openness to regional and international trade, poverty reduction strategy, implementation of debt strategy and having long-term vision.

“There (also) is need to improve business climate overall conditions. This includes adopting pragmatic view of indigenisation, and protecting the economy from negative effects of corruption and patrimonialism,” she said.

The World Bank economist urged Zimbabwe to learn from the failures of Japan in 1946, China in 1958 and South Korea in the 1950s.
She said the three countries learnt from their mistakes, adapted and introduced pragmatic approaches.

African Development Bank country programme officer Ms Chioma Onukogu echoed Ms Piffatti’s sentiments, adding that Zimbabwe could learn from the experiences of others.
But she stressed the need to ensure the plan was tailor-made to suit local conditions.

Chinese and Indian officials gave detailed accounts on how their economies, the second and fourth largest in the World respectively, succeeded in transforming their economies.
India pledged support for the implementation of the plan while China promised to publicise the policy document to attract Chinese investors to Zimbabwe.

After a decade of recession, Zimbabwe’s economy is on a recovery path. The economy recorded 8,1 percent growth last year and it is projected to grow by a further 9,3 percent this year, supported by increased mineral output.

The dollarisation of the economy during the early part of 2009 and the formation of the inclusive Government, improved the business environment.
According to the Frost & Sullivan report on production and investment trends in the Zimbabwe’s mining and manufacturing industries, the mining industry would be the main driver of the economy and is expected to grow by 44 percent this year after minerals exports realised US$1,7 billion last year.