The global economy is on fire . . .

the markets and Zimbabwe needs to stand guided.
To a large extent, the African continent emerged almost untouched by the first crisis of 2008 and has managed an average 5 percent economic growth in the last few years against all odds.
This growth has largely been driven by commodities and improving consumer spending.

However, things do not look too good in this second wave that threatens to engulf the globe.
The International Monetary Fund, the World Bank and the European Central Bank have sent alarm bells. The global economy is on fire.
Whether this part of the world will also catch fire is one thing but chances are the smoke coming therefrom may be dense enough to suffocate our economies.
Does this spell doom? Yes and No!

It all depends on how we will deal with the situation as a continent, a region and a country.
Presently I am more keen on what this whole situation means for Zimbabwe as an economy still recovering from its own economic tsunami.
During the hyperinflationary environment Zimbabwe was “immune” to what was happening on the global front because it had a worse scenario back home.

What else would affect an economy with an official inflation of 231 million percent as of June 2008 and a single note of Z$100 trillion?
Nothing at that point could penetrate or affect the trillionaires we had all become overnight.
But it’s a different ball game altogether now.

The multiple-currency system and the economic correction process has brought us back into the global fold and hence whatever happens on that grand stage will affect this Southern African economy in one way or the other whether positive or negative.
It is in this regard that this country should not consider the global economic crisis as something far-removed from us.

However, the impact will depend on how, as a country, we choose to respond to the unfolding scenario.
So yes, this could spell disaster. Zimbabwe’s economy is still very fragile. The export base is not strong, local industry is stuttering and many challenges continue to impede progress.
The balance of payments position is in shambles.

With only three months to go before the end of the year, the 9,3 percent economic growth might as well turn out to be a fallacy.
Does the economy have the stamina to ward off the impeding challenges? Has the recovery process been strong enough at the roots to withstand the winds that threaten to blow this way?
On face value yes, but a deeper analysis will tell you there is still a lot of work that needs to be done to get the economy firmly on its feet.

On the flip side is an emphatic No! The ongoing global crisis may cause challenges but it does not spell doom and gloom for Zimbabwe.
This country is too blessed to sink. The man of God Prophet Emmanuel Makandiwa has on numerous occasions prophesied that the economy will recover in amazing ways as the nation turns more and more to God.
God is certainly on our side and that is good enough to give us comfort.

The country has admittedly gone through a rough patch but I believe this is history that can only help shape our thoughts without necessarily influencing the future directly.
The mining sector holds the key to sustain the recovery path the economy has taken.
Zimbabwe has more than 40 different kinds of minerals which we can exploit to our advantage. Of course, if the global crisis is not stemmed, demand on the international market will slump, hence the prices.

But optimism remains high that Zimbabwe will benefit from an increased presence in the global markets. Such countries as China and the rest of Asia will obviously keep their demand for commodities high. In fact, China has been approached to bail out struggling economies indicating that it remains on a sound footing.
Furthermore, the global crisis promotes intra-regional trade which could still see demand for minerals and other produce rising as countries look more to their neighbours or continental peers for trade.

Zimbabwe should, therefore, not be found wanting.
An important aspect is the need to add value. The export of primary goods has remained a millstone for this country’s economy. We could treble export receipts if we added value to our products.
This subject is dealt with extensively in the proposed industrialisation policy draft document.

More jobs could be created and wealth generated through value addition. The export of primary products in itself entails exporting jobs.
The need to widen the industrial base and capacitate local companies can never be over-emphasised. Zimbabwe has the wherewithal to command a significant share of the market but an undercapitalised industry will not help matters.
Under the Zimbabwe Industrial Development Policy, the target is to increase capacity utilisation from the current 43 percent average to 100 percent by 2015 through replacement of obsolete machinery, adoption of new technology and enhanced value addition.

This will also help the manufacturing sector and other sectors to create jobs on an incremental basis over the next few years.
This means that strategies should be pursued to rid the economy of any impediments to achieving the above figures, something that will not happen if, as a country, we resign to the misnomer that the global crisis will overpower us.

Furthermore, although foreign direct investment is expected to slow down if the global crisis persists, Zimbabwe needs to cultivate the interest that has so far been demonstrated by investors from traditional markets such as Germany and from new sources that still have resources to invest overseas.
The Chinese have been here, Indians, Germans and many others, and the United States ambassador recently told President Mugabe that his nationals were keen on doing business with Zimbabwe.

Such kind of interest needs to be pursued with haste.
The tourism sector is also one that is benefiting from renewed interest in Zimbabwe as a destination.

Of course, Air Zimbabwe remains a sore point.
Tourism and Hospitality Industry Minister Walter Mzembi wrote a very informed and thorough piece on the airline last week.

I then asked myself why the airline was still in a quagmire if solutions were there as preferred by Minister Mzembi. Let’s go for it and adopt the most viable of the proposals he laid down
I agree with Minister Mzembi that it would a an assault on national pride if we were to allow Air Zimbabwe to fold.

Enough energy and resources should immediately be applied to ensure the airline flies again. We do not have the six months to allow a gradual recovery. A lot of issues such as downsizing should have been done yesterday to restore viability.

The Chiyangwas of this world have invested a lot in motor vehicles of various shapes, sizes and performance and we would want them to extend their resources towards aeroplanes if the window is opened to allow new investors into Air Zimbabwe.

He has said he will soon buy a personal jet but we advise him to help restore viability of the national carrier first.
I wish I could ignore Zesa in this instance, but a lot hinges on timeous provision of power, so I hope the advice proferred by us in the media and other stakeholders on Zesa is under serious consideration to ensure the situation improves.

Sadc has already said power challenges will be with us for some years to come but Zimbabwe as a country has many options at its disposal to ensure commercial and domestic consumers are well taken care of. Come on Zesa!

There is so much we can do differently as a country, including responsible pricing by our retailers to present a formidable force that will somewhat counter the debilitating effects of global economic recession.
When the rand strengthens there is an immediate upward price review but when is softens as drastically as has happened in recent weeks, the ink or whatever it is they use to change prices runs out all of a sudden.
Such behaviour will not take us far as a nation.
Where on earth is Mr Godwills Masimirembwa? I have always warned you guys not to attract his wrath. He never runs short of interventions where prices are concerned.
In God I Trust!