Andrew
December typically heralds year-end and prods us to look at what would have transpired during the preceding months from January.
It is not uncommon to introspect and see where we would have come from while simultaneously charting the way forward.
It is only natural and perhaps predictable that we do so. We monitor and evaluate milestones covered, while concurrently putting under the microscope areas we might have done better, the potential areas of improvement, for indeed every endeavour asks us to perpetually improve.
The year began rather sadly because of the triple ravages of Covid-19, the Russia-Ukraine war and drought.
Covid-19 triggered a trail of destruction, both in lives lost and the consequent economic and social impact. Companies were closed as containment measures where put in place. This was necessary to save lives. Government itself experienced diminishing inflows, as companies were closed and, therefore, hugely diminished tax inflows. Yet it had to bite the bullet, with even huge pressure on expenditure as Covid-19 required quite substantial financial resources to stem the tide.
Then there was the drought. Yields were drastically affected by the low rainfall, leaving most farmers despairing. Food security was under clear and present danger. But nothing is entirely bad. We increasingly learnt the need to drought-proof agricultural processes and not leave output to the vicissitudes of the weather.
We can always adopt environmentally friendly practices, weather elements are not within our control. It thus necessitates proactive measures to mitigate the devastating effects of drought by climate-proofing it.
Agriculture will perennially be in our economic matrix. It provides employment, ensures food security and feeds other industries. The potential for augmenting exports in this field is huge.
The war in Ukraine compounded an already precarious situation, disrupting supply chains and systems that saw shortages of fertiliser, flour, energy et cetera. Fuel prices went up and inflation obliged. This geopolitical situation came really closer to home, revealing the extent to which geographical distances do not matter anymore.
Indeed, rampaging inflation, which was also induced by currency volatility, was upon us. It demanded urgent redress and Government instituted a number of measures, with both monetary and fiscal authorities putting all hands on deck.
Arbitrage opportunities, speculative tendencies and downright unethical conduct did not help matters.
The populace reeled under rampant price increases. Gladly, Government initiatives paid significant dividends as the currency stabilised and inflation was tamed somewhat.
The month-on-month inflation rate in November 2022 was 1,8 percent, shedding 1,4 percentage points on the October 2022 rate of 3,2 percent.
The year-on-year inflation rate (annual percentage change) for the month of November 2022, as measured by the all items Consumer Price Index (CPI), stood at 255,0 percent.
The first and second quarter of the year were really challenging, with the inflation bubble showing no signs of dissipation.
Food prices have an expansive economic effect. High inflation erodes consumer spend and confidence and militates against developmental and growth objectives. It elicits untold suffering. It is, thus, noteworthy that the authorities acted decisively.
It would be remiss of me not to talk about capacity utilisation. This increased to an average of 66 percent during the course of the year, the highest industry has achieved in a long time. Our industries have come to the party in a big way. Sounds of machinery running are commonplace. This is as it should be.
We need to produce, produce and produce, as His Excellency repeatedly says. We need to go all out and capacitate it, retool and re-orient where there is need.
More technologically adept strategies might need to be adopted, which are faster, more convenient and reduce costs of doing business.
We should continue on this remarkable increase in capacity utilisation trajectory and not rest on laurels. The world beckons for our produce, value-added even.
We learn that new investments rose from 1,8 billion to 2,8 billion during the period up to October, relative to the same period last year. This is yet another positive development. The Zimbabwe is Open for Business mantra has reached many ears.
So much has been achieved in this country, even under trying times as intimated above. This speaks to our intrinsic capabilities. While others might be overly critical, things are happening. It is a cue for us to keep moving. Indeed, the world is our oyster.
Economic growth has been revised downwards to 3,8 percent. This is a realistic projection and does not give fodder to prophets of doom.
The economy came under a lot of pressure from both internal and external factors, but we still managed to record growth. It speaks to our resilience. But it also reveals to us that we keep working hard, that we target higher levels for next year. We have demonstrated that it is within our capacity to do so.
Other economies are regressing but we are on a growth path and we have sustained it, perhaps not to the extent envisaged but we are good to go
Investors, both domestic and foreign, are disposed towards investing in economies with the requisite infrastructure. We made great progress during the course of the year. Road, rail and airports have made significant improvements in rehabilitation and expansion. This provides conducive operating environments that make for better conduct of business.
The 100-day cycles and performance management systems in Government have underpinned progress.
Like all things, we strive to do better. Everything is work in progress but we derive tremendous satisfaction on progress made, which should catapult us to even greater heights
Education and health have received Government’s priority consideration. These social services are inestimably critical in any economy. So much more needs to be done, but we acknowledge every effort in this direction.
Education empowers and capacitates an economy. The adoption of 5.0 was incisive. We also have innovation hubs coming up with home-grown solutions.
Any sick and ailing populace cannot be productive, certainly not to the extent to which it is capable of. Thus, we applaud the Government for prioritising these two in budgetary allocations.
In the face of competing interests, this is even more noteworthy. The incremental gains are very encouraging and we keep working at it.
Government has tightened screws on expenditure, part of the reason for the stability, outside of money supply management. This has enabled it to spend more money on priority projects.
Government expenditure patterns resonate with the entire economy. After all, governments are the biggest players in any economy.
The discipline which has been evident augurs well for this economy. It sends the right signals and builds confidence. It reflects that we have our priorities right.
By and large, this has been an eventful year, one with as many challenges as opportunities. We fought formidable battles and emerged victorious. We assiduously pursued some opportunities. Our pedigree as a people is proven.
As we look towards the next one, we also actively consider areas we can do better, those that will continue to take us to the Promised Land.
There is no room for euphoria or complacency. We even apply ourselves with greater resolve, motivation and inspiration. We look just briefly at our past and get singularly focused on our future. We have a great one at this rate!
In God I Trust!
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