ED reforms boost investor confidence: World Bank
ROBUST commitment to macro-economic and governance reforms by President Mnangagwa’s administration has boosted investor and consumer confidence in Zimbabwe, the World Bank has said.
The World Bank, in a report titled “Global Economic Prospects report” for Sub-Saharan Africa, released on June 6, revised upwards Zimbabwe’s Gross Domestic Product (GDP) to 2,7 percent from the 1,8 percent it had projected in January this year.
In its June report, the World Bank said: “Renewed government commitments to critical macroeconomic and governance reforms in Angola, South Africa and Zimbabwe has boosted investor confidence.”
Foreign Affairs and International Trade Minister Sibusiso Busi Moyo yesterday described the latest development as “great feedback” while the Dutch embassy in Harare said Zimbabwe was “going in the right direction.”
President Mnangagwa declared Zimbabwe open for business since assuming office in November last year.
A lot of investors have trickled to Zimbabwe since then and to date the country has attracted more than $16 billion in investment commitments.
Through President Mnangagwa’s “Zimbabwe is Open for Business” mantra, authorities have amended a number of laws to improve the ease of doing business.
Government anticipates economic growth of at least 6 percent this year.
Government has set a target of Zimbabwe growing from being a low-income to a middle income economy by 2030.
The World Bank classifies a middle-income economy as one with a gross national income of between US$1 005 and US$12 235 per capita
Last week, President Mnangagwa said he was optimistic the economy would grow on the strength of Government’s economic reforms and other interventions.
“At the moment, the Government is working on developing the economy for the boys and girls of tomorrow,” he told Zanu-PF supporters at a rally in Chegutu. “We want to leave an
◆ environment, a situation, a country full of hope — one full of confidence for the future. This is why we have said within the next 12 years, that is, by 2030, 12 years from now, with the programmes we have in agriculture, mining, tourism, infrastructure development, ICT and manufacturing, Zimbabwe will be a middle-income country.
“All the programmes we have, generation of power with all those things taking place, we have no doubt, I have no doubt, the current dispensation has no doubt that by the year 2030 we would have transformed this country into a middle class economy.”
President Mnangagwa said per capita income in Zimbabwe would reach $3 500 by the year 2030.
“Currently, the per capita income is at approximately $950 per person, but we want to raise this per capita income,” he said.
“We believe that when we took over last year, the economic growth was around three percent and within four months to six months now, we are sitting at 4,7 percent.
“I have no doubt that by December this year we should have reached five percent economic growth and we are determined that after the next general election to be held in July, our economy will grow at an average of seven percent, annually.”