ZANU-PF manifesto gets thumbs up:
ONE of the major tasks the President Emmerson Mnangagwa led Zanu pf administration has been seized with, in its close to six months in office is adjusting the misbalance in key macro-economic fundamentals which they inherited from the former President Robert Mugabe administration.
From a budget overrun of close to $ 900 million, massive external debts, trade deficits averaging $ 3 billion annually (about a quarter of GDP), extremely low levels of capital investment, a biting cash and liquidity crisis and unsound economic policies, the new administration has premised its 2018 election manifesto on sound economic recourse in order to address these challenges.
The ruling party, Zanu PF envisions a six percent annual growth rate over the period 2018-23 buoyed by a positive investor sentiment and a pro- business approach that will prioritize a robust transformation of major productive sectors of the economy that include agriculture, mining, manufacturing and energy.
While election manifestos tend to be populist and awash with mere political rhetoric, observers have applauded the ruling party’s blueprint as realistic and pro-business, a testament of its sincerity to the plight of the people.
Running under the theme, Unite, Fight corruption, Develop, Re-engage and Create jobs, Zanu PF launched its election manifesto last Friday in Harare amid high expectations of a clear economic roadmap capable of accelerating economic growth ahead of harmonized elections to be held later this year.
As preludes to the envisioned growth targets, the President Emmerson Mnangagwa administration has already attracted over $11 billion in Foreign Direct Investment (FDI) commitments in less than six months in office and will immensely leverage on improved country perception and market confidence going forward.
This is on the backdrop of plummeting FDI flows in recent years that had reached lows of just $ 600 million in 2016.
With re-engagement efforts at the epicentre of the party’s strategy, Zanu PF projects $ 5 billion worth of FDI annually with domestic investment expected to be doubling FDI. This will be complemented by Diaspora remittances.
Analysts have underscored the importance of attracting FDI as an effective tool for recapitalizing struggling firms and increase production output for the export market to improve the country’s balance of trade.
The party has already indicated that its Government will be export oriented going forward with a plethora of measures already in line to resuscitate industry such as the operationalisation of the Special Economic Zones, financing of strategic companies such as NRZ, positioning Small to Medium Enterprises for export market and improving industrial capacity utilisation to 90 percent by 2023.
There will be a massive transformation of the agriculture sector through mechanizing farm operations, giving bankable leasehold security of tenure to farmers to access loans and setting up of irrigation facilities of 200 ha per district among notable initiatives.
Economic analyst Persistent Gwanyanya applauded the fiveyear plan the ruling party has put in place as more business-centric and expressed positive country perception since the new dispensation came into office as a precursor to investor confidence.
“Investor confidence has been immensely improved under the new dispensation and its positive for the economy,” he said.
“In the past we have always had very good reforms on paper and it is important that this manifesto is more realistic in practicality and the implementation matrix is achievable.
Historically we have had the Zimasset which was good but poorly implemented but what is encouraging is that the new dispensation has brought with it that implementation factor,” he said.