Vusumuzi Dube
Vuyisile Mlilo, Business Reporter
ZIMBABWE’S economic performance has displayed remarkable resilience as it recorded a year-on-year growth rate of 4.5% during the second quarter of 2023 when compared to the same period in 2022.
The second quarter of 2023 witnessed significant advancements across various sectors, indicating a strengthening of the country’s economic foundations. Government initiatives aimed at promoting stability, encouraging investment, and fostering economic development have played a significant role in the positive growth experienced during this period. These measures, designed to attract both domestic and foreign investment, have created an environment conducive to business growth and expansion.
Additionally, targeted efforts in sectors such as agriculture, manufacturing, mining, and services have yielded positive results.
The agricultural sector, a key pillar of Zimbabwe’s economy, has witnessed increased productivity, bolstered by favourable weather conditions and improved farming techniques. This has contributed to food security and enhanced export opportunities.
Mining, another significant contributor to the country’s economic growth, has experienced steady expansion and contributed 14.5% to the rising Gross Domestic Product (GDP). Investments in mining technologies, coupled with rising global demand for precious minerals and natural resources, have fueled Zimbabwe’s mining sector growth.
In turn other major contributors to the second quarters higher GDP projections are as follows; wholesale and retail trade: 18.6%, agriculture: 12.8%, manufacturing: 9 %, finance and insurance: 8.4%.
The services sector, comprising a diverse range of industries such as finance, tourism, and telecommunications, has also exhibited positive growth.
Commenting on this positive trajectory, local economist, Mr Stevenson Dlamini said this was a sign of an improved economy.
“The positive economic growth experienced by our economy is a sign of an improving economy mostly driven by infrastructure development and the firming commodity prices globally. As for its impact on employment, there has not been a significant decline in formal employment.
The government can improve the employment levels by investing more in infrastructure projects such as hospitals, roads, bridges and industrial parks,” said Mr Dlamini.
Another economist Mr Morris Mpala warned against complacency and a need to diligently monitor and make economic policy changes where need be.
“The need for continuous power supply, Conducive environment, drought mitigating farming methods and agriculture support capital or otherwise, improved mining, increased tourism initiatives, improved increased ease and cost of doing business will help in the positive growth trajectory,” said Mr Mpala.
Online Reporter