by Dr Masimba Mavaza
Surprise, surprise: Which African country has chalked up the fastest economic growth for the past three years? Even surpassing African superstars? The answer is Zimbabwe.
Since throwing off the shackles of first dispensation Zimbabwe has averaged a robust 4.1% expansion per year, despite the onslaught from the social media in sweat and pain Zimbabwe has shaken the soil of failure off and places the nation on a progression path that was never experienced in the past forty years.
The current president of Zimbabwe cde Emmerson Mnangagwa’s government has tried to differentiate itself from Mugabe’s administrations, avoiding his radical and ideologically driven language and policies. But the detractors will not let them off the jaws of failure.
The economy of Zimbabwe is mainly made of tertiary industry which makes up to 60% of the total GDP as of 2019. Zimbabwe has the second biggest informal economy as a share of its economy which has a score of 60.6%.Agriculture and mining largely contribute to exports. The economy of Zimbabwe grew at average of 12% from 2018 to 2020 making it one of the fastest growing economies in the world recovering from negative growth before it slowed to 0.7% growth due to COVID 19.
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It sailed through the 2020 financial and COVID 19 crisis when its neighbours faltered. Zimbabwe has succeeded despite poisonous politics, a lack of proper management of natural resources and emerging skilled labour shortages. Its success is the subject of a fascinating new economic order.
In Mthuli’s view, Zimbabwe represents a recipe for transforming a stagnant state-dominated economy into a capitalist gazelle. The needed ingredients include radical, quick market reforms, in combination with slow (not fast) action on privatisation to avoid the emergence of oligarchs.
In June 2019, the Zimbabwean government announced the reintroduction of the RTGS dollar, now to be known simply as the “Zimbabwe dollar”, and that all foreign currency was no longer legal tender.By mid-July 2019 inflation had increased to 175%, sparking concerns that the country was entering a new period of hyperinflation.In March 2020, with inflation above 500% annually, a new taskforce was created to assess currency issues. In this multi currency was now reintroduced and a sense of normalcy returned back to our economic space.
There has been serious abuse of political power and government by individuals who are surrounding the president. People who have worked their way to the top in order to oil their pockets and mouths. This shows a dangerous shift of priorities of the party and Government from real issues, like the the welfare of the common man destruction of the environment, corporate welfare, and economic development.
2020 saw Zimbabwe taking the issue of corruption seriously and a number of high ranking officials were arrested.
So Zimbabwe took the issue of corruption seriously and the economy responded.
We must remember that in 2014, the World Bank Board of Executive Directors approved the Zimbabwe Reconstruction Fund (ZIMREF), a country-specific umbrella-type multi-donor trust fund that contributes to strengthening Zimbabwe’s systems for reconstruction and development.
ZIMREF is the key instrument for implementing the Bank’s Third Interim Strategy Note for Zimbabwe.
After the new dispensation Mnangagwa’s government moved cautiously to alter the pattern of management that it inherited from the Mugabe regime. But the G40 minority had held on government machinery that included many levers of economic power. While the members of the G40!minority were by inclination wedded to a system of private enterprise, they had evolved a system of government intervention to support infant industries and maintain agricultural prices through marketing boards. The need to cushion the wealth they amassed during the first dispensation had brought complete dominance by the few.
Although the agricultural sector declined dramatically in the early days of the second republic it is still an important productive sector of the country’s economy. More than one-half of the total labour force is engaged directly in agricultural activities.
The sector is divided into large-scale commercial farming, which occupies some 40 percent of the total land area and was historically dominated by white farmers, and small-scale farming, which is both commercial and subsistence in nature. Occupying about the same total area as the large-scale commercial sector—but on land that is considerably small,smallholders have steadily increased their share of the country’s total agricultural output since independence, from about one-tenth in the early 1980s to about half of the total production in the early 2020s.
Crop production is well diversified. The most important food crop is corn (maize), which is grown throughout Zimbabwe now with Pfumvudza enough corn is expected to be produced so that Zimbabwe will be able to meet its domestic demand and also export a sizable quantity. Other food crops include wheat, millet, sorghum, barley, cassava, peanuts (groundnuts), soybeans, bananas, and oranges.
Prior to the agricultural decline of the early 21st century, Zimbabwe was the largest producer of tobacco in Africa. Despite the decline in this sector, tobacco is still the country’s principal cash crop. Three types of tobacco have traditionally been grown in the country: Virginia flue-cured, on the large commercial farms; burley, mostly by smallholders; and Turkish, of more limited extent. So the new dispensation is in frantic efforts to bring Zimbabwe back to the bread basket status. The Cotton, grown by both smallholders and large commercial farmers, was once a chief export crop and was also the foundation of a large domestic textile industry. 2021 will see the crops which were declining being brought back to the fold.
Sugar is grown in the southern Lowveld. It is exported as well as used as the basis for an important fuel industry, which mixes the sugar by-product ethanol with gasoline to help decrease the country’s reliance on expensive imported fuels. The government must resuscitate our coffee production and Cattle and animal farming. Beef and dairy products, produced mainly by the commercial sector, accounted for about one-fourth of agricultural output in most years this must be brought back in 2021.
Sheep, goats, and pigs are raised in some areas, but their importance is minor compared with cattle it should be elevated to the same level of cattle. Poultry are kept largely for home use but we must open foreign markets.
2020 has seen an increased activity in mining. Although mining used to account for less than 10 percent of the GDP and would provide work for about 5 percent of the employed labour force, its significance in the economy is considerable as a major earner of foreign exchange. Direct mineral exports account for about one-third of total export earnings.
It is now the prospect of great mineral wealth the new dispensation has elevated the artisan miners status and harness their work into a profitable outfit.
Zimbabwe’s huge coal reserves are estimated to be about 30 billion tons, much of it desirable low-sulfur bituminous coal. Production from the major coalfields near Hwange is limited, however, by the country’s capacity to transport the coal by rail is being looked at again to make it an economic necessity because of coal’s bulkiness.
Manufacturing generates about one-tenth of the country’s GDP.
Zimbabwe must learn to diversify Because of the diversity in manufacturing that developed, Zimbabwe will be able to provide nearly 90 percent of the manufactured goods used in the country.
Coal is the country’s primary energy source. A growing percentage of the coal utilized is transformed first into electricity by thermal generating plants fueled by coal. Its principal users are industries, mines, and farms.
Although Zimbabwe has great hydroelectric potential, it has not been realized, and the country imports about three fifths of the electricity it consumes. Energy shortages in the resulted in frequent blackouts throughout the country. This will be a thing of the past in 2021.
The coming year is a year of development. We do not need people who try to patronise us by singing their undying love for the president when they do the exact opposite. The so called faithfuls have done tremendous damage to the productivity of the government. This is a far greater damage to the integrity of the government and the party.
Preserving the institution of the law in this case has become the red flag of the greedy politicians, when in everyday lives of the people, it looks like a lynch mob. When the government spends huge amounts of time and money on such people it shows a disrespect of the common people and the real issues.
The party must Get back to the real work, in the cause of the common people, not political party survival only.
Create in people a new life and confidence by tackling corruption head on. We have multitudes of capable people. The government must not be held hostage by those hiding behind tribalism and factions. Those who steal from people in this economic climate are treasonous bigots.
We must develop inter party unity to solve the national problems
Stop corporate destruction of the economy and bring those to book who deserve justice. The fear of being exposed shows that we are under siege from ourselves.
The fact that a person has done well yesterday must not give that person the power to destroy us.
The legacy of the president is at the risk of being trashed by the greedy cruel deadwood surrounding him. The economy is bleeding to death and shameless leaders are busy showing off what they have stollen.
We now have a problem where junior officers are stealing in order to outdo the seniors.
Without a successful prosecution of only a few our country will soon be on its knees.
The behaviour of some of the leaders makes all wonder if they have the party at heart let alone the country.
The ministers que up to mislead the president on the state of the economy. If this is not treasonous then what is?
If we are to fix our economy we need to shed the dead wood the criminals and face the problems with courage and vigour.
Vazet2000@yahoo.co.uk
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