Zimbabwe inches closer to attaining Vision 2030, says Minister

THE transformation of ordinary people’s livelihoods in line with President Mnangagwa’s vision of an upper-middle-income economy by 2030 is on track, and only an average extra US$500 is required per person per annum to attain the milestone target.

Finance, Economic Development and Investment Promotion Minister, Prof Mthuli Ncube, said this on Friday as he outlined the positive economic gains achieved so far under the Second Republic.

He was officiating at the launch of Contract for Differences (CFDs) on the Victoria Falls Stock Exchange (VFEX) where he expressed optimism that Zimbabwe would no doubt meet the ambitious Vision 2030.

The World Bank segments world economies into four income groups —low, lower-middle, upper-middle, and high-income countries.

While Zimbabwe has over the years been classified as a lower middle-income economy, the accelerated economic transformation under Second Republic’s first phase of the National Development Strategy 1 (NDS1) has yielded positive results with improved livelihoods.

According to the World Bank, a middle-income economy is one with a gross national income ranging between US$1 086 and US$12 235 per capita.

Under President Mnangagwa’s vision, key goals entail transforming Zimbabwe to an upper middle-income economy with per capita gross national income above US$3 000, rising employment rates in both the formal and small-to-medium enterprises, decent housing, reduced poverty, national food security, affordable, competitive and accessible education and health services and infrastructural development.

Prof Ncube said part of these key national priorities have been achieved and some are in progress and made reference to a majority of Zimbabweans who now own houses and vehicles debt free, which places the country on the right trajectory towards achieving 2030 targets.

He said achieving a single digit inflation, implementation of the state-owned entities reform strategy and deepening financial inclusion were some of the critical top deliverables.

“The trading of VFDs on VFEX marks a significant milestone in the evolution of our capital markets and reaffirms Zimbabwe’s commitment to fostering innovation and progress in consolidating economic transformation as reiterated in the 2024 national budget,” said Prof Ncube.

“I am sure you can attest to the work that the Government has been doing through its policy initiatives to transform Zimbabwe into an empowered and prosperous upper-middle-income society by 2030,” said Prof Ncube.

“Government will continue to implement policy initiatives that promote capital formation and investment. Last week I was at an investment conference in Johannesburg and I did make a very simple statement about the level of income in Zimbabwe.

“People own houses and cars. Anyone in Zimbabwe who owns a house and has no debt on it, they own it outright. If you own a car and you don’t have debt on it, you own it outright. That is unusual for any society, any country in the world to be debt free on your house and on your car.” Prof Ncube said the rise in income levels and wealth shows that Zimbabwe is not a poor country.

“So, really getting to an upper-middle-income status will not be difficult. I think all we need, from my calculations, is an extra US$500 on average per person per annum to qualify for that US$3 500 threshold for an upper-middle-income society and we’ll get there by 2030, it will happen,” he said.

“You are already doing it. You own no debt on your house and your car, and some have lots of United States dollars in their accounts.”

Prof Ncube said private sector-led economic growth was ideal hence Government policies will continue to strive towards that. He said the recent creation, Mutapa Investment Fund, like other sovereign funds, was critical in driving economic progress.

In line with the President’s motto of building a prosperous Zimbabwe leaving no-one and no place behind, Prof Ncube said the CFDs will tap into a new market, especially the aspiring youths.

He also said Government has achieved positive gains from its engagement and re-engagement policy to win back confidence of the world and attract both domestic and foreign investments.

The launch of CFDs on VFEX speaks to the focus of NDS1 towards deepening financial inclusion, especially coming at a time when the rapidly changing global finance landscape demands innovative instruments in managing risks and tapping opportunities in volatile markets. — @ncubeleon