Vision 2030 requires commitment for reform: Think Tank

Nelson Gahadza

Zimbabwe’s path to 2030 will be shaped by its ability to adapt, reform and innovate, as well as the country’s commitment to create an open, secure and inclusive economic environment, according to a global think tank.

The country’s roadmap, Vision 2030, has its ambition for the nation to become an upper-middle-income economy by the year 2030.

The Government’s five-year economic blueprint, National Development Strategy 1 (NDS1), which ends in 2025 and targets an economic growth rate of 5 percent per annum to catapult the country into an upper middle-income economy by 2030.

However, a tank, Atlantic Council, in a report on how Zimbabwe can achieve its vision, said that by prioritising reforms, Zimbabwe can not only meet its Vision 2030 goals but also position itself as a leading example of sustainable and inclusive development in Africa.

“The comparison with regional peers like South Africa and Mozambique underscores the urgency for Zimbabwe to create a more conducive environment for foreign investors,” reads the report, which was launched in Harare last week.

The report noted that despite Zimbabwe’s rich natural resources, skilled labour force and strategic location, the country’s FDI inflows remain below their potential.

“The relatively low freedom scores, especially concerning property rights and bureaucratic efficiency, are significant barriers. These challenges are not insurmountable but require a committed and strategic approach,” said the report.

It highlighted that strengthening property rights, streamlining bureaucratic processes and ensuring security are essential steps to unlock Zimbabwe’s full potential as an investment destination.

“Simultaneously, the empowerment of women is not merely a social objective but a key economic strategy. Zimbabwe’s relatively strong performance in women’s economic freedom compared to regional and global standards is commendable, but gaps remain,” reads the report.

According to the report, foreign direct inflows (FDI) inflows to Zimbabwe show substantial potential for growth and hence indicate opportunities for further enhancing the investment climate to attract and retain foreign investments.

According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2024, Zimbabwe attracted US$588 million in FDI in 2023, marking a 48.9 percent increase from the previous year.

“While this growth is encouraging, it remains below the level of US$745 million recorded in 2018, prior to the Zimbabwean (challenges after elections),” the Atlantic Council said.

However, despite the recent positive jump, FDI inflows to Zimbabwe remain below those of regional peers like South Africa and Mozambique.

Speaking at the launch of the report, Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, said current FDI levels are being understated as various investment equipment is not accounted for.

“For example, if we take into account the quantum of equipment that Manhize Steel plant brought into the country and the cost of this equipment was not accounted for as FDI, and there are various mining equipment coming into the country and not accounted for, of which they can bring a different picture on FDI inflows,” he said.

He noted that there should be collaboration between ZIDA, ZIMRA and the Reserve Bank of Zimbabwe (RBZ) in consolidating the capital inflows.

Mthuli said the Government remains committed to improving the investment climate, which is key for economic development.

Kenneth Sharpe, the West Properties chief executive, said the Government should play the facilitatory role and create an enabling environment for the private sector to invest.

He noted that women are the backbone of the economy, as statistics show that 70 percent of small to medium enterprises (SMEs) are women.

“The growth that you can have in the economy comes from the SME sector. This means women in Zimbabwe can provide the platform for the growth of the economy,” he said.

However, the report said addressing barriers to women’s participation in the economy will not only improve the economic prospects for women but also contribute to broader economic growth and societal well-being.

“Countries that successfully integrate women into the economic mainstream typically experience higher productivity, innovation and competitiveness. By analysing the successful reforms of countries like Rwanda, Togo and Sierra Leone, Zimbabwe can draw lessons on how to implement impactful changes,” reads the report.

The report also noted that the recent stagnation in Zimbabwe’s prosperity since 2018, exacerbated by the Covid -19 pandemic, highlights the fragility of progress.

However, it said this should be viewed not as a setback but as an impetus for renewed efforts, and the strategy must be holistic, targeting the weakest links in its economic and social systems while capitalising on existing strengths.