2030 goals: Yes we can!
Week, we continue to identify Zimbabwe’s endowments that can help transform the economy.
AN upper middle-income economy remains possible by 2030, but we must not sit on our laurels. We need to jump to our feet and do our utmost to turn our dreams into reality. Yes, we can!
For decades we have spoken about our riches and endowments, and these must now produce the right economic statistics for us and place us in our rightful position on the global arena.
We have the wherewithal to occupy a significant position and help determine how things go.
Yes, we have a voice!
The projected 3,5 percent economic growth for this year can be doubled easily if we play our cards right.
This is not a fallacy or just wishful thinking. This is not unbridled optimism.
This is no mere hope, but this is something we can achieve if we all pull in the same direction.
Major milestones have already been achieved under the National Development Strategy 1, with a number of targets having been achieved well ahead of schedule.
This reflects the huge possibilities embedded in this economy, giving us the impetus to get to Canaan — the land of milk and honey — even faster than we thought.
The President has already said as much. In this instalment, we look at some of the factors that can get our economy firing from all cylinders.
Infrastructure development is one of the key factors that will unlock Zimbabwe’s economic potential this year.
In recent years, Zimbabwe has seen big investments in its infrastructure and that has been a vital cog in growing the country’s economy.
The development and rehabilitation of road infrastructure under the Emergency Road Rehabilitation Programme 2 (ERRP2) has seen an improvement in the country’s major roads, such as the Harare-Beitbridge Road and Mutare-Bulawayo Highway, thus promoting ease of doing business.
Upgrading road and rail networks, modernising ports and airports, and expanding access to reliable and affordable electricity can enhance connectivity, facilitate trade and attract investment.
The new-look US$153 million Robert Gabriel Mugabe International Airport, which was commissioned by the President last year, is another key infrastructure investment that will see Zimbabwe becoming a regional hub while promoting tourism.
A number of airlines are now resultantly flying into Zimbabwe.
More infrastructure investments such as this one will surely see Zimbabwe’s economic potential being unlocked this year.
Development of infrastructure in tourism, agriculture, mining, energy and manufacturing sectors, among others, will not only increase Zimbabwe’s appeal as a tourism and investment destination, but will also see Zimbabweans benefiting from the improved operating conditions.
According to the World Bank (WB), infrastructure development and investments are a growth enabler.
“Infrastructure affects growth through several supply and demand-side channels. Investments in energy, telecommunications and transport networks directly impact growth, as all types of infrastructure represent an essential input in any production of goods and services. In addition, infrastructure can also reduce the cost of delivered goods, facilitate the physical mobility of people and products, remove productivity constraints and increase competitiveness,” said the financial institution.
The potential to continue investing in infrastructure development, including transportation, energy and telecommunications, is there and the country needs to tap into it this year to register increased economic activity.
Infrastructure development is one of the key factors that will unlock Zimbabwe’s economic potential this year.
A viable manufacturing sector and increased industrialisation are game-changers that the economy can take advantage of in growing its economy this year.
Capacity utilisation in this sector has been growing steadily.
It is heartening to note that already, more than 70 percent of products on supermarket shelves are locally produced.
If Zimbabwe continues on this trajectory, then surely our potential will be realised this year.
Increased local production and investment is a key barometer when foreign investors consider destinations.
Furthermore, promoting manufacturing and industrialisation can help Zimbabwe move up the value chain and reduce dependence on raw material exports.
Encouraging domestic production, improving the business environment and providing support to industries can also stimulate job creation, increase exports and contribute to economic diversification.
The financial services sector is also an area that can stimulate economic growth for Zimbabwe this year as it plays a vital role in supporting activity.
Strengthening the country’s banking systems, promoting financial inclusion and
enhancing access to credit and capital for businesses can drive entrepreneurship, investment and economic expansion.
Small and medium enterprises (SMEs) can further be harnessed for economic growth.
Zimbabwe has a vibrant and dynamic SMEs sector that contributes significantly to employment and economic activity.
The Government also continues to emphasise the importance of the SMEs sector in spurring economic growth.
Supporting SMEs through better access to finance, business development services and market linkages can foster entrepreneurship, innovation and job creation, which will all aid the country’s economic prosperity.
In 2020, the Government launched the Micro, Small and Medium Enterprises Economic Policy 2020-2024 to stimulate growth and form synergies that will create jobs and empowerment, so this should be continued this year.
Implementing policy reforms where need be, streamlining regulations and combating corruption can instil confidence in investors and promote economic stability.
The Second Republic continues to reiterate the need to promote Zimbabwe as an investment with much to offer.
“My Government is continually working towards improving the sustainable investor-friendly business environment. This in turn, should attract more foreign direct investment into our country and generate employment in all sectors of the economy,” said the President last year.
Regional integration and trade are also another attribute that can lift Zimbabwe this year.
The country’s membership in regional economic communities such as SADC and COMESA and AfCTA provides access to a larger market and opportunities for trade and investment.
Actively participating in regional integration initiatives, reducing trade barriers and promoting cross-border cooperation can expand market access and enhance economic competitiveness.
Also, technological innovation and digital economy are an attribute that could benefit Zimbabwe in the long run if capitalised on.
Embracing technological innovation and promoting the digital economy can drive productivity, efficiency and competitiveness.
And investing in digital infrastructure, fostering digital skills and supporting startups and tech companies can unlock new economic opportunities and attract investment in the digital sector, something Zimbabwe could derive maximum economic benefits from.
These additional attributes, along with the previously mentioned ones, contribute to the overall potential and opportunities for economic growth and development in Zimbabwe.
By leveraging these and implementing appropriate policies and reforms, Zimbabwe can unlock its economic potential and build a sustainable and prosperous future for present and future generations.
In God I Trust!