Sundaymail Editor
Editor’s Brief
Victoria Ruzvidzo
“The greatest glory consists not in never falling, but in rising each time we fall.”
These words aptly describe Zimbabwe’s economy which had been in the doldrums for long, but is now firmly on the rise. It continues to perform beyond targets and expectations.
Last Thursday the Minister of Finance, Professor Mthuli Ncube came with great news in his half term budget review statement, with an upward economic growth projections to 7,8 percent, from 7,4 percent.
Economic activity has definitely been rising even amidst all the recurrent challenges mostly brought about by the Covid-19 pandemic. Tangible, sustainable progress is beginning to be apparent.
Even the harshest of sceptics should by now notice that amidst all the stormy waters, we are definitely navigating and charting the right course, dealing with each wave as it comes.
In the midst of the Covid-19 pandemic and the menacing Delta variant at that, many would be forgiven for believing strongly that the economy would not even achieve the initial target which many had described as “too ambitious” when the Prof announced it late last year, let alone surpass it.
Zimbabwe is a resilient economy with such die-hard citizens capable of weaving their way through challenges to make things happen.
Not only has the economy fended off the humongous challenge of Covid-19 , it has actually gone ahead to breach the limitation and produce better than expected results.
We commend the Government for its discipline in terms of targeting funds towards critical and productive aspects instead of recurrent expenditure. The private sector and all of us as stakeholders have largely complemented these efforts in our different workstations and workspaces.
Although we are coming from a low base of negative growth, the fact that this year we will attain 7,8 percent growth is no mean feat, particularly in an environment where Sub-Saharan Africa and SADC region economies are only managing 3,4 percent and 2 percent respectively.
The global economy is expected to grow by 6 percent this year from an initial projection of 0,5 percent.
Indeed the 2021 National Budget theme: “Building Resilience and Sustainable Economic Recovery” has come to pass. This is a great achievement on all fronts. Even our worst of enemies has no choice, but to celebrate with us.
Such growth rates have been long in coming.
A number of records have been broken this year, chief among them is the 34 percent increasing in agriculture, more than treble the initial target of 11 percent. This has had such a positive impact on overall performance. Zimbabwe’s economy leans on agriculture largely.
Maize output reached record levels of 2,7 million tonnes for the 2020/21 summer cropping season, up from 900 000 tonnes previously. Other grains have realised improved output. This will not only ensure that Zimbabwe is adequately provided, but there is more than enough. The economy will save the much-needed foreign currency that has been used to import maize.
This has been achieved at a time when there is a global production shortfall of produce such as maize and soyabean – an indication Zimbabwe has struck the right cord.
Other crops such as tobacco and cotton have exceeded projections.
This has come out of increased rains, adequate planning and preparation, with the majority of farmers taking up the Government programmes such as Pfumvudza/Intwasa Conservation Scheme, the Enhanced Crop Productivity Scheme (Command Agriculture), farm mechanisation and the Livestock Growth Plan, among other initiatives.
The mining sector has benefited from firming prices in the global market while investments in the sector are already beginning to yield fruit.
The economic engine is firing from all cylinders, with inflation also receding from 837,5 in July 2020 to 56,37 percent last month.
“Despite the raging global pandemic, implementation of the NDS1 through the 2021 National Budget remains on course, following a favourable farming season, recovery in manufacturing sector and firming international commodity prices.
The Covid-19 response measures, coupled with the vaccination exercise currently underway globally and domestically, continue to give hope in sustaining the economic recovery.
“Now that the macro-economic environment is stable, the Government will continue to safeguard these gains to ensure improvement in the socio-economic well-being of citizens
“Therefore, let’s focus on building resilience and recovery of the economy in the middle of this Covid-19 storm,” said Prof Ncube.
The Minister is spot-on. With all this progress comes a much bigger responsibility upon our shoulders, to not back down from this fight we are winning. It is all the more imperative now to step up the game with all stakeholders in the economy. We are called upon to up the ante and ensure we successfully achieve all our economic targets.
Now more than ever is the best time to increase investment, add more capital into the economy and ensure a well-drilled machine with enough arsenal to achieve sustainable growth and meet if not exceed higher economic targets.
Measures such as investing in infrastructure are designed to create more jobs and increase productivity by enabling businesses to run smoothly. These should be sustained.
Infrastructure spending occurs when a local state or the Government invests money to build and repair physical structures and facilities needed for and economy to be successful. We have witnessed many such projects in terms of roads, dams and other such.
This is of paramount importance and should be top priority for us to continue growing and expanding.
The economy has immense potential to perform even better and we must not rest until this is achieved.
We need to remain on this growth trajectory.
Some areas to note:
Corruption remains the albatross round the neck as it negates some of the major milestones we have achieved. The Government and all its partners should do the utmost to eliminate the vice that often rears its ugly head in many unsightly forms.
The country has lost billions of dollars through corruption and this must not be tolerated anymore.
Business must escalate innovation, inclusive of digital technologies that enhance performance and output. Adoption of new technology in production processes allows efficient production while improving product quality. Competitiveness is the name of the game, particularly in face of the African Continental Free Trade Area through which Zimbabwe has potential to grow its exports.
Businesses too, must be proactive and keep supporting and complementing the Government’s initiatives to grow the economy. We have witnessed smart partnerships in this regard and we hope more are in the offing.
Business must not over-price to get usury profits. This has been one of this country’s greatest undoing. It upsets effort to foster stability. There is profit in the virtues of industry and honest hard work,that is what sustainably gets an economy moving not the get -rich-quick schemes!
Labour must remain resolute despite the challenges,appreciate current developments and recalibrate. In a Covid-19 challenged environment, workers have been seeking huge increments, justifiably so in some instances, while there is need for compromise in others. A social contract would do well to foster commitment from all parties.
Agriculture must build on current improvements, factor lessons learnt and consolidate growth. Newer, better, more efficacious methods must be explored. The upcoming season has potential to reap better results. We need to pull all stops to ensure that happens.
Mining is doing great but is susceptible to price fluctuations. This demands that value-addition concepts be adopted at a faster pace. Investments into the sector must continue to be encouraged while a watchful eye must whip an errant boys into line. To plug all mineral leakages.
Amplifying entrepreneurial pursuits is one critical strategy that can result in greater productivity with an accent on training, preparation and tailor-made funding. Youths are emerging as great entrepreneurs with potential to contribute immensely to GDP growth.
The Finance Ministry and the Reserve Ban of Zimbabwe must continue to superintend over economy as they have superbly done over the past few years.
All hands should be on deck. Every citizen is an economic player and shareholders need to move in unison, collaborate and cooperate, forming partnerships that are sustainable and progressive.
In God I Trust!
Twitter handle: @VictoriaRuzvid2; Email: [email protected]; [email protected]; WhatsApp number: 0772 129 972.
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