By Wisdom Mumera.
Harare, Zimbabwe. (News Of The South) – Government needs to prioritise iron ore deposits and channel more energy into their exploration and marketing instead of focusing on diamonds, an economic expert has said.
Speaking in Harare recently Dr G Chigumira, the Executive Director of the Zimbabwe Economic Policy Analysis and Research Unit said iron ore possessed a greater chance of alleviating the country’s economic problems than diamonds.
“We need to fully utilize our iron ore deposits instead of focusing on diamonds which are a phenomenon of fashion”
“Iron ore simply depends upon the normal processes of global business demands whereas diamonds are about fashion and culture”, he said.
“It’s easier to compete on the global market with iron ore than with diamonds since the local people can beat us to the type of diamonds their culture requires”, he added.
Chigumira however said iron ore was a product of necessity that could be found a market for anywhere easily.
Meanwhile the economic expert has warned that the country faces the challenge of losing its credibility if it fails to meet the requirements of the Lima agreement with international financial institutions.
“We need to pay back the debts to the International Monetary Fund (IMF) and other financial institutions as agreed in Lima otherwise we will lose credibility”.
“When we lose credibility it will be harder to access financial assistance”, he added.
Government agreed a payment plan with international financial institutions during a conference held in Lima, Peru earlier this year.
The payment strategy involves clearing arrears to the tFree multinational institutions namely the IMF (US$110million), World Bank (US$1,15billion) and the AfDB (US$601million) by the end of April.
There is also the need for the development of a new comprehensive Country Financing Programme supported by the three institutions that attracts long term financing to promote growth and debt
sustainability.
The third part involves engagement of the European Investment Bank, the Paris Club and non-Paris club bilateral creditors for debt resolution on the strength of performance under the Financing Programme.
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