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Economic Planning and Investment Promotion Minister Tapiwa Mashakada told the Parliamentary Portfolio Committee on Budget and Finance that set targets had not been achieved in the first year of the plan, which runs until 2015.
Launched in July last year, the MTP set a number of targets across major economic sectors all aimed at improving performance of the economy, slowly recovering from years of meltdown fuelled by economic sanctions.
Minister Mashakada told the committee chaired by Goromonzi North legislator Paddy Zhanda that the Zimbabwean economy had reached a “plateau”.
“We need a serious injection in our economy by way of foreign direct investment. We need a lot of support in terms of global overseas financing,” he said.
Minister Mashakada said implementation of the MTP had primarily been affected by lack of funding, policy discord and delays in approving tenders by the State Procurement Board.
Lack of implementation of Public Private Partnerships was also affecting performance, especially on infrastructure projects.
Implementation of the MTP requires over $9 billion with the resultant effect of the failure to finance plans affecting economic growth targets.
While the MTP targets economic growth rate of 7,8 percent this year, Government has said there will be a slowdown to around 5,6 percent.
The MTP envisages an average growth rate of 7,1 percent up to 2015.
“The slowdown in economic performance in 2012 is largely due to the poor performance of the agriculture sector,” Minister Mashakada said.
He, however, said the mining sector was improving its performance.
The minister said the manufacturing sector was also failing to improve its performance due to a number of factors revolving around lack of cheap finance.
He said only inflation targets of between four and six percent during the plan period were likely to be achieved.
Minister Mashakada noted that while economic performance was in the positive in 2011 and 2012, no new jobs had been created.
“The growth that has been registered has been jobless and that is a challenge. We need to create growth that creates jobs,” he said.
He said the Government was failing to improve living conditions as “poverty is on the increase”.
“We are fortunate that we dollarised and everything fell into place, but it’s very clear that where we are now is not sustainable.” — New Ziana
Online Reporter