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Prosper Ndlovu Business Editor—
ZIMBABWE respects the rights of investors and is prepared to listen and address their concerns to foster economic growth, President Robert Mugabe said yesterday. The country needs critical private sector driven investment of up to $27 billion to finance numerous economic projects under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset) — a five year development plan (2013-18).
Addressing the nation during the Heroes’ Day commemorations in Harare, the President said a number of reforms were being implemented by the government to attract increased domestic and external investment and bring about the desired economic turnaround.
He said while the country was endowed with vast natural resources, it needed partners from friendly countries to exploit them and develop its economy.
“Being a country that observes and respects the concerns and rights of investors, as a government we’re prepared to listen to all investor concerns and address them,” said President Mugabe.
“We’re still grappling with transforming our economy. Even though we’re endowed with resources, transforming our economy is still a task. That’s why we invite investors especially those from friendly countries to partner us. In the meantime we’ll do our best to improve.”
The President said his government was seized with addressing the cost of doing business, which experts blame for repelling investment and stifling domestic commodity competitiveness.
“To address the challenges faced by our local industries, a National Competitiveness Commission is being established with the responsibility to review business related legislation and the repealing of all laws that hamper growth,” he said.
Businesses have cited high utility, labour, technology, transport and logistics costs, and costs of borrowing as well as a multiplicity of regulatory charges as major impediments to domestic industry viability. President Mugabe stressed the strategic role of agriculture as the backbone of the country’s economy and challenged farmers to adopt modern production techniques in the context of climate change.
“Because Zimbabwe is drought prone, we should employ all strategies that help us avert the consequences of drought and starvation,” said the President.
He said the recently acquired farming equipment under the $98.6 million Brazilian More Food for Africa loan facility was being distributed to small holder farmers across the country and would be used in the coming farming season. The President said economic growth opportunities abound in the mining and tourism sectors, which have proved to be resilient to the prevailing difficult macro-economic fundamentals.
The two sectors, said the President, have recorded significant growth in the first half of the year with gold, nickel, platinum and chrome output maintaining a steady upward trend.
President Mugabe said the tourism and hospitality industry was poised for major growth with arrivals projected to clock the two million mark by year end.
He commended the sector for propelling the country’s name higher after winning several star country branding awards.
The President said the growth of the tourism industry was being buttressed by the prevailing peace in the country and paid tribute to service chiefs and citizens for embracing tranquillity.
As a result, he said, the country has been ranked first in terms of countries that are free from incidents of instability and terror.
The President also said the country was on track towards meeting its target in provision of decent accommodation under the new National Housing Delivery Programme, a major component of the country’s blue-print, Zim-Asset.
He said plans were underway to introduce a rural housing loan scheme that will benefit thousands of communal and commercial farmers.
Online Reporter