Govt on un­der-em­ploy­ment

Sunday News (Zimbabwe) - - Business - Wil­son Dakwa Business Re­porter

THE Gov­ern­ment will by next month come up with a strate­gic frame­work meant to re­duce un­der-em­ploy­ment in the coun­try, a Cabi­net Min­is­ter has said.

Un­der-em­ploy­ment refers to a sit­u­a­tion whereby peo­ple in a labour force are em­ployed at less than full-time or reg­u­lar jobs or at jobs inad­e­quate with re­spect to their train­ing or eco­nomic needs. As a re­sult of the eco­nomic sit­u­a­tion most peo­ple have been forced to take any jobs re­gard­less of their aca­demic at­tain­ment to just earn a liv­ing with re­ports that some uni­ver­sity grad­u­ates were now en­gaged in vend­ing.

In an in­ter­view on the side­lines of a break­fast meet­ing in Bu­l­awayo on Fri­day, Pub­lic Ser­vice, Labour and So­cial Wel­fare Min­is­ter Patrick Zhuwao said the strate­gic frame­work must be ready by 1 De­cem­ber.

“We are de­vel­op­ing a strate­gic frame­work which will as­sist us to re­solve un­der-em­ploy­ment. Zim­babwe at al­most full em­ploy­ment is at 95 per­cent but that em­ploy­ment is pri­mar­ily made up of peo­ple in the in­for­mal sec­tor with about 84 per­cent of the em­ploy­ment com­ing from the in­for­mal sec­tor which I re­gard as un­recorded un­em­ploy­ment.

“This com­ing week we are go­ing to de­velop the con­cept note and then en­gage stake­hold­ers. In the sec­ond week, we will have na­tional mo­bil­i­sa­tion around the con­cept and the third week we will have pro­vin­cial out­reach pro­grammes to un­der­stand how we can put the strat­egy into ef­fect. In the fourth week, we will get report back on the pro­vin­cial con­sul­ta­tions. Ul­ti­mately by the last week of Novem­ber, the frame­work should be re­leased be­fore the Christ­mas break. The strate­gic frame­work will be used for the labour sec­tor from 2018 – 2023,” said Min­is­ter Zhuwao.

While ad­dress­ing del­e­gates at the break­fast meet­ing, Min­is­ter Zhuwao said Zim­babwe’s low For­eign Di­rect In­vest­ment (FDI) was as a re­sult of low do­mes­tic in­vest­ments and not the Indige­nous and Em­pow­er­ment Pol­icy.

“Crit­ics say that Zim­babwe doesn’t have much FDI be­cause of poli­cies like in­di­geni­sa­tion. This is a lie. We have low FDI be­cause when we bring in FDI, it must sit next to do­mes­tic in­vest­ment. Un­for­tu­nately, we have low do­mes­tic in­vest­ment be­cause we don’t have suf­fi­cient long term sav­ings. Long term sav­ings are in the form of in­vest­ments in pen­sions. As a min­istry, we want to be able to stim­u­late long term sav­ings in an ef­fort to as­sist the Min­istry of Fi­nance to struc­ture in­vest­ments,” he said.

Zim­babwe at­tracted about $319 mil­lion in FDI in 2016 com­pared to $421 mil­lion in 2015. For­eign in­vest­ment in­flows into Zim­babwe stood at $387 mil­lion in 2011, stag­nated at $400 mil­lion in 2012 and 2013 and then reached an all-time high of $545 mil­lion in 2014 be­fore de­clin­ing.

The Gov­ern­ment is in the process of set­ting set up Spe­cial Eco­nomic Zones (SEZs) as a mea­sure to im­prove FDI flows. SEZs will at­tract in­vestors by of­fer­ing in­vestors mer­its such as tax in­cen­tives. Last week, Min­is­ter of Fi­nance and Eco­nomic De­vel­op­ment Dr Ig­natius Chombo said Zim­babwe has an av­er­age $400 mil­lion in FDI per year, which is lower than the re­gional av­er­age of $800 mil­lion. Min­is­ter Zhuwao also high­lighted that there is a need to sup­port en­trepreneurs so that they can con­trib­ute to­wards so­cial se­cu­rity.

“En­trepreneurs need to be pro­moted so that they also con­trib­ute to­wards so­cial se­cu­rity be­cause we need to have long term sav­ings. This will also fa­cil­i­tate for long terms sav­ings which will in turn con­trib­ute to­wards do­mes­tic in­vest­ment,” he said.

Min­is­ter Zhuwao praised the Com­mand Soya Bean Scheme, say­ing it would elim­i­nate im­por­ta­tion of soya beans by May 2018.

The Gov­ern­ment will give 10 kilo­grammes of soya bean seed to each farmer who will ben­e­fit from the Pres­i­den­tial In­puts Scheme this year. Zim­babwe is said to be los­ing about $200 mil­lion through soya beans im­ports an­nu­ally.

Me­gafest South­ern Re­gion Busi­ness­woman of the Year 2017, Dr Ran­gari­rai Ta­tenda Gunda (sec­ond from left) of Ta­tenda Sa­faris from Vic­to­ria Falls holds her tro­phy while her business man­ager Mr Kudzai Chisadza (sec­ond from right) holds a minia­ture tro­phy at the Me­gafest Business Awards cer­e­mony held at a Bu­l­awayo ho­tel on Fri­day evening. On the ex­treme right is Mr Dzin­gi­rai Tu­sai who was the guest of hon­our and on the left is Me­gafest CEO Dr Tafadzwa Mat­sika. (See story and more pic­tures on Page B6)

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.