Rural economies as anchor of economic transformation

Dr Tinashe Eric Muzamhindo

ZIMBABWE’S rural areas hold immense potential for unlocking the country’s economic development.

The over 70 percent of the population residing in these communities is the backbone of Zimbabwe’s agriculture, mining and potentially manufacturing sectors.

Although there are significant challenges, including inadequate infrastructure, limited access to finance and restricted markets, these can be addressed with adequate strategic planning, political will and mindset shift.

Central issues include management of water resources, devolution, innovation, infrastructure development and realigning the interplay between where resources are farmed and mined on one hand and manufacturing and export on the other.

Vision 2030 has, as one of its pillars, prioritisation of rural transformation.

Drawing inspiration from global success stories, such as Bangladesh’s rural development initiatives, which have benefitted over 11 million families, Zimbabwe can replicate similar models.

Strategic investments in rural infrastructure, climate-resilient agriculture and enhanced access to finance and markets can unlock the potential of rural economies.

To this end, we have seen the development of agro-processing companies for produce such as tomatoes and baobab.

These initiatives are commendable and need to be scaled up to ensure that the whole value chain, including downstream industries, is localised in specific rural communities.

This will have the net effect of slowing rural-to-urban migration, expanding the national cake and also diversifying the pool of players that are contributing significantly to the national income through taxes and levies.

Significant investment in rural communities will transform them into revenue centres for the nation, as opposed to beneficiaries of social development programmes.

Improving value addition and post-harvest storage is critical.

Studies reveal that post-harvest losses account for up to 40 percent of total agricultural production in Zimbabwe.

To mitigate this, Zimbabwe should enhance farming systems and reduce post-harvest losses.

The Agricultural Marketing Authority’s efforts to establish commodity exchange markets are a positive step.

Recent steps to establish tobacco marketing floors in areas where the crop is farmed and processed show the importance of ensuring rural communities’ local economies benefit directly from the resultant infrastructure development, while improving access to service providers such as banks in the rural community.

Diversifying farming systems is equally important.

Promoting irrigation and climate-resilient agriculture can mitigate climate change effects and ensure sustainable production.

The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development’s conservation agriculture and agro-forestry initiatives are commendable.

For instance, the Smallholder Irrigation Revitalisation Programme has improved food and nutrition security.

Rural women empowerment is vital for inclusive economic growth.

Enhancing access to land, finance and markets for rural women can unlock their potential as entrepreneurs and farmers.

The Zimbabwe Women’s Empowerment Fund is a positive step towards promoting gender equality.

This is premised on statistics that show that, in Zimbabwe, women make up 52 percent or more of rural households and empowering them is crucial for rural transformation.

Innovation and entrepreneurship drive rural transformation.

Supporting young innovators and entrepreneurs in rural areas can stimulate growth.

Further, devolution is essential for effective rural transformation.

Decentralising decision-making and resource allocation enables rural communities to take ownership of their development.

The Inter-Ministerial Task Force on Devolution’s efforts to establish functional provincial councils are a step in the right direction.

A 2020 World Bank report highlights devolution’s potential to improve public service delivery and accountability in rural areas.

Structured transformation

To accelerate rural transformation, Zimbabwe should enhance rural infrastructure development through public-private partnerships; streamline access to finance for rural entrepreneurs and farmers; scale up climate-resilient agriculture initiatives and conservation agriculture practices; and strengthen support for rural women empowerment initiatives and promote gender equality.

To achieve rural transformation, Zimbabwe requires a structured approach.

This involves establishing a clear framework for implementation, monitoring and evaluation.

The Government can establish a rural transformation agency to oversee the coordination of initiatives across various ministries and other stakeholders.

This agency can develop a comprehensive strategy, setting clear goals, objectives and timelines for rural transformation.

Additionally, establishing provincial and district committees can ensure grassroots participation and ownership.

By adopting a structured approach, Zimbabwe can ensure that rural transformation efforts are targeted, effective and sustainable.

Business models for rural transformation

Innovative business models can play a crucial role in driving rural transformation in Zimbabwe.

One such model is the hub-and-spoke approach. Under this arrangement, rural hubs serve as centres of agricultural production, processing and marketing.

This model can be replicated across various value chains, from cotton to horticulture.

Another one is the cooperative-based approach, where rural farmers pool resources to access markets and finance.

Private sector companies can also adopt inclusive business models, integrating rural smallholder farmers into their supply chains.

For instance, outgrower schemes can provide rural farmers with technical assistance, inputs and market access.

By adopting innovative business models, Zimbabwe can unlock new opportunities for rural economic growth and development.

So, Zimbabwe’s rural economies hold immense potential for growth and development.

By prioritising these key areas, Zimbabwe can unlock this potential and achieve sustainable economic growth.

Dr Tinashe Eric Muzamhindo is an author and head of the Zimbabwe Institute of Strategic Thinking. Contacts: [email protected]