Zimbabwe can proactively pursue economic recovery
THE unfolding tragedy that Zimbabwe, the region and our continent face due to a second, but more vicious coronavirus assault is comparable only to a nuclear war. It is impossible, if not naïve, to calculate the damage that this pandemic inflicts on our lives.
SMEs have potential to create safe jobs and income, but the informal sector has little or no capacity to sustain demands of a young, vibrant population.
We need a well-managed eco-political system with a functional industry, a sophisticated infrastructure, a healthy competitive democracy and proficient local governance to mitigate the negative impact of coronavirus.
Zimbabwe boasts a stronger human and natural resource base.
But our economy lacks ideology. Fiscal and monetary policies seem administered on trial-and-error basis resulting in low production, high inflation, weak domestic demand and a dearth in foreign currency.
COMALISO proposes a free market economy to stimulate competition and optimal use of resources.
Huge government subsidies on dysfunctional state-owned companies divert crucial resources from the financial system, thus weakening the country’s ability to enhance job creation.
The government should merely inspire conditions conducive to innovation, productivity, free movement of capital and respect of property rights whilst giving business member organisations like Confederation of Zimbabwe Industry, Zimbabwe National Chamber of Commerce, Bankers Association, Institute of Chartered Accountants and Chamber of Mines space to input fiscal and monetary policy.
Expenditure on a bloated government weakens our economy.
Anti-corruption institutions and enforcement are politicised and weak.
Billions of US dollars siphoned out must be recovered while tenders are made transparent. Economic enablers like railways, roads, electricity and water must either be commercialised or completely privatised for efficiency.
No need for “state-sponsored stimuli” if our economy is freed from needless control. Moreover, it is still difficult to comprehend why our rich endowment in gold, platinum, coal, diamonds and chrome fails to jump-start our economy.
Our government must focus on good governance, managing the national debt.
Despite many policy blueprints on manufacturing, we are heavily dependent on imports even for basic consumer goods — the reason for women and youths risking their lives stampeding to South Africa.
Zimbabwe is signatory to the African Continental Free Trade Area Treaty, thus can only benefit by value addition and value chain development to reduce the import bill.
There is also need to embrace toll manufacturing as part of the global supply chain for the world’s leading sport, clothing and consumer goods brands.
COMALISO believes the “Zimbabwe is an agricultural economy” narrative is self-defeating, old school mantra.
In this age of global finance and industrialisation, it is hard to perceive subsistence farming anchoring development.
Micro and macro-level commercial farming, yes; subsistence farming supported by a weak tenure system, no!
It is true 60% of Zimbabwe’s population scraps sustenance in rural areas.
It is a fact the country should start exporting maize; grow our own sugar, beans, potatoes, onions, groundnuts, tomatoes and a host of other horticulture products.
We must produce more tobacco and export more beef to strengthen our agro-industry. However, if we are to emerge victorious post-coronavirus, certain fundamentals have to apply.
• First, politicised land reform and subsidies do not enhance confidence because this breeds acrimony and complacency.
• Agricultural funding is best handled by relevant institutions that appreciate due diligence. Second, relying on rainfed agriculture is delusional.
• We need a new phase of rejuvenating water harvesting through dams and irrigation systems. Moreover, revive agriculture extension services at the lowest level for profitable knowledge exchange where possible, exploiting smartphones.
• Set a new paradigm in urban land use to protect wetlands and stream banks.
• One thing that this global pandemic has effectively done is decimating domestic and international tourism.
• No amount of virtual reality can substitute physical visits to the Victoria Falls.
• Assuming the whole episode ends, tough immigration laws still paralyse our country fuelled with a bad international brand, poor transport infrastructure, expensive accommodation and food.
• Devolution helps reap full benefits from our unique sunny climate and enlightened human capital.
• Our rich tradition and cultural tapestry is yet to be fully exploited.
Opening the currency market and allowing global players to invest in local tourism, exorcising toxic politics and desisting from antagonistic propaganda is the perfect post-coronavirus panacea for our ailing tourism sector.