adminTaurai Changwa
Business Forum
The new political dispensation has brought with it hope that the country can re-invent itself and offer a lifeline to a generation that has largely been disillusioned.
Also the tone that the new administration has adopted, which is a decidedly economic one, has raised expectations that there will be more interventions designed to improve the economy.
In particular, President Emmerson Mnangagwa has since noted that job creation is one of the key priorities of the new Cabinet.
But the wish list from ordinary Zimbabweans is long. They want jobs, they want a stable currency, an efficient and modern transport system, and a functioning health care system, among others.
Jobs
Although it is commendable that Government has been preaching the gospel of entrepreneurship, which is the hallmark of any modern functioning economy, the struggle to grow informal businesses into formidable firms that create employment and pay statutory obligations has been formidable.
Most Zimbabweans want an economy, which provides them with jobs that pay a living wage.
In most cases, formal employment guarantees health care cover and future social security through pension schemes, which not only guarantees social security, but grows the economy as well.
In addition, the savings stock that is provided through funds from pension schemes and medical aid insurance, especially from workers, can be a handy resource that can be channelled to the productive sectors of the economy.
As a result, this will ensure that banks have funds or deposits that have a long tenure, and such funds can be used to sponsor long-term projections in sectors such as mining.
Quite clearly, Zimbabwe has a large pool of potential workers that simply needs to be tapped into.
The proliferation of vendors on most urban streets show that locals have an appetite to work and earn a decent living.
But providing jobs will also help the country retain its critical skills, most of which are currently working for competing economies in the region.
So it is instructive that Government has to focus on creating an enabling environment for both local and foreign investment, including economic growth. The onus is on the new administration to decisively correct past mistakes and create a conducive environment for job creation.
Stable currency
Currently, Zimbabwe does not have its own currency, but many economists are agreed that introducing one now might not be a viable option, for a currency needs to be supported by real wealth.
The liquidity crunch in the local market is real, and continued issuance of Treasury Bills — which are premised on the creation of future wealth — is worrying; more so, when there are reports that some of the Government paper is being rolled over.
On the other hand, the country cannot continue to use the multicurrency system forever.
A responsible Government should prepare for the future transition to a local currency.
Therefore, a white paper outlining the pre-conditions that are needed for this process to take place, including how Government intends to defend the currency, is desperately needed.
The banking sector needs to regain confidence and the general public needs to be confident that if they deposit their United States dollars they will be able to withdraw the same, whenever they want.
Efficient transport system
Over the years, the liberalisation of the public transport system, while noble, has resulted in indiscipline in the industry as investors have been targeting profit at the expense of the commuting public.
At times, commuters have been treated unfairly and during difficult times in the country’s history, Government has often been held to ransom through strikes.
Kombis are a menace on our streets and lots of lives have been lost over the years due to them.
In most modern economies, it is the responsibility of government to run an efficient public transport system.
And Government should do likewise to bring back sanity in the industry.
If run properly and along professional lines, this can be a lucrative line of business as well.
Many towns have dreams of being interconnected by various modes of transport such as road and rail.
This is all possible.
Environmental & health issues
One subject that has not been clearly broached by the new administration is the issue of the environment.
Well, considering the local circumstances, this might not be priority but it definitely needs to be planned.
An aesthetic environment is good for business and health.
It doesn’t need a lot of money to manicure our recreational sites in and around cities.
In any case, designating workers to do this, as it used to be, creates employment through recruitment of workers to mind the sites.
But over the years, we have normalised decrepit recreational sites, which is sad. However, environmental issues are broad.
They extend to the need for local authorities to provide clean and safe drinking water.
Agriculture
No doubt, President Mnangagwa, as his predecessor Cde Robert Mugabe used to do, has clearly indicated that future economic growth will be predicated on agriculture.
And we should expect that local policies will reflect as much.
But the tenure system needs to be urgently resolved.
Many experts claim that land can easily be “a dead asset” if it is not monetised.
Any reform, they say, should necessarily involve a system where financial institutions, which are more than willing to extend support, have scope to recoup their investment in cases where farmers default.
There is also need to begin investing in technologies that cover seed varieties, tillage and harvesting.
The example of China, which has managed to feed the 1,3 billion people that make up its population, is quite helpful. Farmers in the Asian country have been so technophile to such an extent that some of them use drones to apply chemicals on their crop.
This does not only increase the hectarage of land under production, but the average yield per hectare.
All we need is the vision and the political will to do so.
Way forward
It is quite clear that a lot of things are broken, but they can be repaired.
The new administration has thus far demonstrated its appetite to reform and grow the economy.
There is also a lot of goodwill from across the world and this good will should not be squandered.
If the new team walks the talk, then all their promises will come to pass.
Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe, Certified Tax Accountant and an Estate Administrator. He has vast experience on tax, accounting, audit and corporate governance issues. He is a director of Umar & Tach Advisory. He writes in his personal capacity and can be contacted at [email protected] or WhatsApp on 0772374784.
Online Reporter