Re­sus­ci­tat­ing in­dus­try and in­dus­try devel­op­ment

Sunday News (Zimbabwe) - - Front Page -

Sun­day News

Con­tin­ued from last week

THE econ­omy is ex­pected to sur­pass the ini­tial growth pro­jec­tion of 4,5 per­cent in 2018 on ac­count of more than an­tic­i­pated per­for­mance across key sec­tors namely agri­cul­ture, min­ing, man­u­fac­tur­ing, as well as ser­vices. As a re­sult, the over­all eco­nomic growth in 2018 is now pro­jected at 6,3 per­cent.

Over the du­ra­tion of the Pro­gramme, the econ­omy is pro­jected to grow by 9 per­cent in 2019, and 9,7 per­cent in 2020. This growth will be un­der­pinned by re­newed busi­ness con­fi­dence and in­vest­ment op­por­tu­ni­ties as the New Dis­pen­sa­tion opens up Zim­babwe for Busi­ness across all sec­tors of the econ­omy. Smart Agri­cul­ture

With re­spect to agri­cul­ture, the Pro­gramme presents quick­win in­vest­ment op­por­tu­ni­ties for re­al­i­sa­tion of self-suf­fi­ciency and food sur­pluses that will see the re-emer­gence of Zim­babwe as a ma­jor con­trib­u­tor to agri­cul­tural pro­duc­tion and re­gional food se­cu­rity in the south­ern Africa re­gion and beyond.

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme en­vis­ages greater in­volve­ment of the do­mes­tic fi­nan­cial sys­tem in un­der­pin­ning the fi­nanc­ing of agri­cul­ture. With re­gards to live­stock, the Pro­gramme con­tains mea­sures sup­port­ive of full re­cov­ery, in terms of the size and qual­ity of the na­tional herd, with ac­com­pa­ny­ing ben­e­fits for im­proved sup­ply along the live­stock value chain, and ul­ti­mately meet­ing na­tional re­quire­ments, as well as those of the ex­port mar­kets.

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme tar­gets fur­ther strength­en­ing of con­trol and mon­i­tor­ing sys­tems over the Spe­cial Agri­cul­ture Pro­duc­tion Ini­tia­tive in­puts sup­ply and dis­tri­bu­tion chain.

Heavy re­liance on Gov­ern­ment sup­port for the Spe­cial Agri­cul­ture Pro­duc­tion Ini­tia­tive will be grad­u­ally re­duced as ini­tia­tives to en­hance pri­vate sec­tor sup­port gather mo­men­tum, that way over­com­ing po­ten­tial devel­op­ment of voids in ca­pac­i­tat­ing pro­duc­tion by the farmer.

In or­der to fa­cil­i­tate pri­vate sec­tor in­vest­ment in agri­cul­ture, Gov­ern­ment will ex­pe­dite is­suance of bank­able 99 Year Leases to al­low farm­ers ac­cess fund­ing from fi­nan­cial in­sti­tu­tions.

The New Dis­pen­sa­tion has taken the de­ci­sion to fi­nalise com­pen­sa­tion to all for­mer farm­ers af­fected by the Land Re­form Pro­gramme, in ac­cor­dance with the coun­try’s Con­sti­tu­tion and Zim­babwe’s obli­ga­tions un­der bi­lat­eral agree­ments. Work to­wards this is be­ing ex­pe­dited through a Work­ing Group com­pris­ing Gov­ern­ment of­fi­cials and rep­re­sen­ta­tives of for­mer farm own­ers.

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme also en­vis­ages Gov­ern­ment im­prov­ing farmer ac­cess to mar­kets for live­stock and other agri­cul­tural pro­duce as a quick-win in­ter­ven­tion over the re­main­der of 2018 into 2019 and 2020. In this re­gard, Gov­ern­ment will put in place modal­i­ties to op­er­a­tionalise the Agri­cul­ture Com­mod­ity Ex­change to close the mar­ket­ing gap that cur­rently ex­ists.

Min­ing Ex­plo­ration and Devel­op­ment

In min­ing, the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme tar­gets: Re-open­ing of closed mines. Ex­pan­sion of mines that are op­er­at­ing be­low ca­pac­ity. Open­ing of new mines. Pro­mot­ing ben­e­fi­ci­a­tion and value ad­di­tion, through do­mes­tic smelt­ing and re­fin­ing, to in­crease earn­ings from min­eral re­sources. The im­pact of min­ing goes beyond min­eral ex­plo­ration, ex­ploita­tion, pro­cess­ing and value ad­di­tion. Min­ing is linked to many other value chain in­dus­tries, and is tar­geted to con­trib­ute over 70 per­cent of the coun­try’s ex­port earn­ings in 2018.

The first half per­for­mance in min­er­als such as gold, coal and chrome, among oth­ers, also point to bet­ter prospects for 2018, than the pre­vi­ous year’s fore­cast.

Min­ing pro­ceeds present them­selves as a nec­es­sary shot in the arm to the rest of the econ­omy, with much more po­ten­tial as min­ing rev­enues are ploughed back into the econ­omy to cre­ate cir­cu­lar, self-re­in­forc­ing in­clu­sive growth.

Re­sus­ci­tat­ing In­dus­try and In­dus­try Devel­op­ment

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme will pri­ori­tise in­creased in­vest­ment in the man­u­fac­tur­ing sec­tor, with em­pha­sis on value ad­di­tion and ben­e­fi­ci­a­tion of agri­cul­ture pro­duce and min­er­als, to in­crease job cre­ation and ex­port earn­ings.

It is against this back­ground that Gov­ern­ment will fa­cil­i­tate roll out of out­reach ini­tia­tives part­ner­ing do­mes­tic and for­eign in­vestors, build­ing on the ini­tial mea­sures con­tained in the 2018 Bud­get and other Gov­ern­ment pol­icy pro­nounce­ments to im­prove the in­vest­ment and busi­ness cli­mate.

To en­hance and em­brace the in­for­mal mar­ket, the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme will part­ner busi­ness Cham­bers and Con­fed­er­a­tions in fa­cil­i­tat­ing devel­op­ment of mech­a­nisms for strength­en­ing link­ages with for­mal busi­ness. The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme will also fo­cus on sup­port­ing sus­tain­able mi­cro, small and medium en­ter­prises growth and devel­op­ment through busi­ness link­ages, mar­ket ac­cess, clus­ter devel­op­ment, busi­ness in­cu­ba­tion and sup­port ser­vices.

Pro­tect­ing the En­vi­ron­ment

With re­spect to en­vi­ron­men­tal man­age­ment, the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme tar­gets pro­tec­tion, restora­tion and pro­mo­tion of sus­tain­able use of ter­res­trial ecosys­tems, sus­tain­able man­age­ment of forests, fight­ing the veld fire scourge, com­bat­ing de­ser­ti­fi­ca­tion, halt­ing and re­vers­ing land degra­da­tion and loss of bio­di­ver­sity. Fur­ther, Gov­ern­ment will in­te­grate the nec­es­sary mit­i­ga­tory mea­sures into na­tional poli­cies, strate­gies and plan­ning, to strengthen re­silience and adap­tive ca­pac­ity to cli­mate re­lated haz­ards and nat­u­ral dis­as­ters. This in­cludes pro­mot­ing cli­mate re­silient wa­ter man­age­ment sys­tems, fo­cus­ing on both crop and live­stock pro­duc­tion. PART IV: Ser­vices sec­tor re­forms

This Sec­tion fo­cuses on mea­sures aimed at ad­dress­ing the fol­low­ing: Tourism, dig­i­tal econ­omy, bank­ing and Fi­nan­cial Sec­tor Ser­vices, in­sur­ance and Pen­sion Sav­ings.

Tourism

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme also tar­gets sup­port for ag­gres­sive mar­ket­ing and re­brand­ing of Zim­babwe, to fa­cil­i­tate tourism ar­rivals, tak­ing ad­van­tage of the coun­try’s di­verse tourist at­trac­tions, rang­ing from nat­u­ral, to man-made his­tor­i­cal sites. This will hinge on pro­vi­sion of in­no­va­tive in­cen­tive pack­ages, and the re­lax­ation of all re­stric­tive visa re­quire­ments, among other mea­sures.

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme will also re­view tourism op­er­a­tors’ li­cens­ing re­quire­ments with a view to im­prove en­try into the in­dus­try and com­pet­i­tive­ness of tourism prod­ucts. This will in­clude the stream­lin­ing of the reg­is­tra­tion, Li­cens­ing and Per­mit re­quire­ments, as well as the nu­mer­ous charges and fees. Fur­ther­more, the Pro­gramme will also tar­get sus­tain­able fi­nanc­ing of the tourism in­dus­try through the es­tab­lish­ment of a Tourism Re­volv­ing Fund that will pro­vide cap­i­tal re­sources for tourism devel­op­ment.

Dig­i­tal Econ­omy

Growth of Ser­vice Sec­tors also out­lines op­por­tu­ni­ties for the dig­i­tal econ­omy aris­ing out of adop­tion of ICT, with also ben­e­fits from in­creased in­vest­ment in e-Gov­ern­ment plat­forms.

In this re­gard, har­ness­ing the dig­i­tal econ­omy and dig­i­tal en­trepreneur­ship con­trib­utes sig­nif­i­cantly to eco­nomic growth, and has the po­ten­tial of cre­at­ing jobs for the youth and at low cost, ben­e­fit­ing from ap­pli­ca­tions of dig­i­tal plat­forms. Cen­tral will be sup­port for in­no­va­tion and col­lab­o­ra­tive re­search among in­sti­tu­tions of higher learn­ing, in part­ner­ship with tech­nol­ogy ori­ented in­dus­try, tak­ing ad­van­tage of op­por­tu­ni­ties and niche in the dig­i­tal econ­omy.

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme also tar­gets broad­en­ing adop­tion and util­i­sa­tion of e-Gov­ern­ment across Min­istries, De­part­ments, lo­cal au­thor­i­ties and State owned en­ter­prises in the pro­vi­sion of pub­lic ser­vices to cut loop­holes for cor­rup­tion.

Bank­ing and Fi­nan­cial Sec­tor Ser­vices

This Sec­tion also out­lines the role of bank­ing and fi­nan­cial sec­tor ser­vices in sav­ings mo­bil­i­sa­tion, in­clud­ing fi­nan­cial in­clu­sion ini­tia­tives to em­brace pre­vi­ously dis­ad­van­taged sec­tors such as SMEs. Un­der­pin­ning the above, will be fo­cus on mo­bil­i­sa­tion of de­posits through pro­mo­tion of a cul­ture of sav­ings and in­vest­ment, to en­gen­der the role of the bank­ing sec­tor in fi­nan­cial in­ter­me­di­a­tion, par­tic­u­larly in sup­port­ing pro­duc­tive and ex­port sec­tors to at least 90 per­cent of to­tal bank­ing sec­tor lend­ing. The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme will con­tinue to en­cour­age use of plas­tic money through dig­i­tal plat­forms.

In­sur­ance and Pen­sion Sav­ings

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme is tar­get­ing in­sur­ance pen­e­tra­tion to reach 20 per­cent, with var­i­ous af­ford­able mi­cro-in­sur­ance prod­ucts via the mo­bile phone tar­geted to emerge as the lead­ing drivers of in­sur­ance pen­e­tra­tion. Draw­ing from off­shore ex­pe­ri­ences, the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme also tar­gets re­view of some of the strin­gent in­sur­ance in­dus­try li­cens­ing re­quire­ments, in­clud­ing for bro­kers and un­der­writ­ers.

In or­der to ad­dress the peren­nial ar­rears prob­lem, Gov­ern­ment will, over the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme, in­sti­tute a num­ber of pub­lic sec­tor pen­sion re­forms, in­clud­ing ra­tion­al­is­ing and har­mon­is­ing pen­sion con­tri­bu­tion rates for paras­tatals and lo­cal au­thor­i­ties.

Gov­ern­ment has man­dated the In­sur­ance and Pen­sions Com­mis­sion to un­pack the find­ings and rec­om­men­da­tions of the Com­mis­sion of In­quiry into the Con­ver­sion of In­sur­ance and Pen­sion Val­ues from Zim­babwe dol­lars to United States dol­lars, and come up with an im­ple­men­ta­tion frame­work that will ad­dress com­plaints re­lat­ing to low val­ues, low con­fi­dence, cor­po­rate gov­er­nance chal­lenges and high ex­pense ra­tios, among other things.

In­vest­ing in Pub­lic In­fra­struc­ture

The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme recog­nises that func­tional pub­lic in­fra­struc­ture re­mains a key en­abler to un­lock­ing eco­nomic growth po­ten­tial, in­crease com­pet­i­tive­ness and pro­duc­tiv­ity, while equip­ping pub­lic ser­vices to meet de­mand. In this re­gard, the Pro­gramme pri­ori­tises quick-win projects in en­ergy, wa­ter and san­i­ta­tion, ICT, hous­ing and trans­port, with fo­cus on ex­pe­dit­ing com­ple­tion of on­go­ing in­fra­struc­ture projects, that way con­tribut­ing to the re­vival of the econ­omy. The Tran­si­tional Sta­bil­i­sa­tion Pro­gramme, there­fore, tar­gets in­creas­ing the Bud­get on cap­i­tal ex­pen­di­tures from the cur­rent 16 per­cent of to­tal Bud­get ex­pen­di­tures to over 25 per­cent, be­gin­ning from the 2019 and 2020 fis­cal Bud­gets. Our re-en­gage­ment ef­forts will also tar­get sup­port from Devel­op­ment Part­ners, par­tic­u­larly for projects that im­prove the well-be­ing of cit­i­zens, in­clud­ing en­cour­ag­ing of blend­ing Grants from Devel­op­ment Part­ners with in­ter­est bear­ing in­stru­ments to pro­mote in­fra­struc­ture devel­op­ment.

To be con­tin­ued next week

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.