VP Mujuru backs US$100 billion plan

call to ensure adequate power in the near future.
Zimbabwe faces critical power shortage and is presently only able to generate about 1 300 megawatts against national power demand of 2 100MW.
The country is now importing up to 200MW to make up for the power deficits and in so doing losing millions of dollars that could be invested in other critical areas.
Vice President Mujuru made the call when she set the tone for a US$100 billion economy by 2030 at the KMFS CEO Africa Roundtable in Nyanga two weeks ago.
“Bold decisions need to be implemented to address the current power shortage in a manner that ensures that the country has enough electricity for the foreseeable future.
“Previously, the reason for our failure to attract investors in this sector had to do with tariffs and exchange rates. That is now history,” said VP Mujuru.
She implored the Government to allow investors to expand existing capacity and also start Greenfield projects.
She pointed out that it was no longer good enough to continue boasting about potential that was not being realised.
VP Mujuru’s call on power was mind provoking considering the current shortages at this level of economic activity.
Admittedly, Government has approved US$10 billion worth of power projects, but the first one will only come on stream in 2014 at the earliest, barring any constraints.
To that, Economic Planning Minister Tapiwa Masha-kada concurred saying the country should raise power output to about 15 000 megawatts to achieve its 2030 vision.
He said by that time, the country should not have only capacity to meet domestic power demands, but must be able to export it as well.
With that in mind the Ministry of Energy should follow through on approved projects to ensure the country is not found wanting as economic activity picks up.
Energy Minister Elton Mangoma said efforts were underway to ensure adequate power supply pointing out RioZim’s Sengwa project could solve the power deficit by 2014.
He said an investor had also been secured to raise generating capacity at Hwange by installing units 6 and 7. More units will also be set up at Kariba Hydro Power Station.
Minister Mangoma said a number of small independent power producers had been licensed while for the first time all Zesa’s three small thermal power stations were operational.
The critical need for sufficient power was one of the things VP Mujuru said needed to be addressed for the country to realise its target of a US$100 billion economy by 2030.
She delivered a candid, but frank statement on what needs to be done to ensure the economic target is achieved.
In the context of her punchy, frank and honest speech, Zimbabwe should start talking, thinking, dreaming and planning a US$100 billion economy.
Following her presentation the Vice President and captains of industry present at the event unanimously agreed to embrace the 2030 vision as a national programme.
The Vice President then pledged to take the initiative for formal presentation to Government such that the initiative becomes part of national planning.
Finance Minister Tendai Biti and fellow Cabinet ministers Saviour Kasukuwere (Indigenisation), Elton Mango-ma (Energy) and Tapiwa Mashakada (Economic Planning) attended the event and endorsed the 2030 vision.
With such senior representation in terms of key economic ministries of Government, sustaining the agenda for a US$100 billion economy should be light work.
The respective ministers all delivered detailed presentations on the key building blocks for the country to exploit its potential to attain its economic target.
But it was the speech of Vice President Mujuru that touched the hearts of many and left everyone feeling proud of being a Zimbabwean.
It was really strange for a politician to stick to discussing business and preach the need to avoid political postulations when given a platform and only lecture economic imperatives for a country in need of realising its vision.
For starters, she admitted considering the country’s potential “Zimbabwe can maintain double digit growth rate in the next decade or two”
But then, as the biblical quote aptly sums “where there is no vision, my people perish”.
In the same manner Vice President Mujuru contends the country needed a shared vision, known and acceptable to the majority of Zimbabweans.
While Zimbabwe has gone through difficult times, it was possible for the country to rediscover and realise its potential.
However, there were a number of conditions the country needs to ensure to realise its target.
Undoubtedly, Zimbabweans need to start putting such commitments to action if ever, as a nation, we are to realise the potential that we have and tout so much about.
VP Mujuru contends that there is need to depoliticise national programmes and activities and end dramatisation of political differences.
“In my opinion, exaggeration of our political tension has had a worse impact on the economy than the actual political tension,” said Vice President Mujuru.
The Vice President said it was regrettable that the current debate on indigenisation has generated more heat than light and was focussed on distributive rather than growth policies.
The success of the indigenisation programme would not depend on how well the national cake is sliced, but the extent to which locals enjoy a bigger share of the cake. As everyone might well be aware of by now that the country needs to address the issue of poor infrastructure, which could soon become an impediment to growth.
In the same vein she pointed out the need to improve and expand basic infrastructure such as road dualisation, airport expansion and rehabilitation of rail system as these could constrain growth and development.
The Vice President also stressed the need to shift focus from rain fed agriculture to developing sophisticated irrigation system to boost productivity.
In that regard she stressed the need to promote small grains. On tourism, it was her considered view that the sector presented immense opportunities and one that should be promoted as a “soft option”.
The Vice President also said the biggest challenge that industry is facing was access to adequate and affordable lines of credit, hence it was critical to ensure the opening of external lines of credit for business to retool.
In no uncertain terms the Vice President noted on how the country needs to speak with one voice in calling for the lifting of unjustified western imposed economic embargo.
She noted that economic sanctions were hurting businesses more than they were hurting individuals and should be regarded as an economic imperative.