The Sunday Mail
It is important for the environment to give maximum support to locals who have an extra dollar to spare to ensure that when caught between the choices of either investing or consuming, they will choose to invest.
Howdy folks!
Please note that there was no zero missing on Finance Minister Patrick Chinamasa’s resource envelope for the 2016 National Budget — his light briefcase can only carry US$4 billion per year!
Actually, it had US$3,85 billion, with the balance to be borrowed from the domestic market.
He just has to get to US$4billion at least, after all the significant compromises from the ambitious proposals he received from various ministries.
The good Ministry of Agriculture, Mechanisation and Irrigation Development, for instance, submitted a budget of US$543 million, only to be allocated a modest US$145 million — down from the US$201 million it was allocated this year.
While the Ministry of Lands and Rural Resettlement was also expecting to walk away US$28,6 million richer, it may have to learn to be content with US$9 million for the ensuing year.
The Environment, Water and Climate Ministry’s budget was also slashed from this year’s US$88 million to just US$33 million in 2016, as Minister Chinamasa attempts to ensure there is something for everybody.
But the sobering and painful reality of it is just but a bitter pill to swallow.
It, indeed, separates reality from mirage and wishes.
Otherwise, cowboys like us would have ridden those wishes if they were a bunch of horses.
However, we just had to be content with the bird in hand — they say it’s worth no less than two in the bush.
Minister Chinamasa was almost like the Biblical Peter, that last week Thursday, for he seemed to be saying, “Silver and gold I do not have, but what I do have I give you.” (Acts 3:6).
This was, of course, to those who were extending their big begging bowls to him.
And what does he have?
A bunch of policy reforms inspired by his budget theme “Building a conducive environment that attracts Foreign Direct Investment”.
He seems to need that FDI for developmental projects, as his budget will only commit a paltry 7,9 percent of its resources towards that cause.
And the rest goes to recurrent expenditure, with salaries getting the lion’s share.
So, silver and gold won’t do the miracle of raising our economy from the ground!
He just doesn’t seem to have enough of it in his briefcase.
But it is his penchant for guys with bigger briefcases yonder our borders that really boggles the mind.
Minister Chinamasa highlighted in his budget that the “successful implementation of Special Economic Zones will attract increased Foreign Direct Investment”.
It looks like we have no deliberate plan in place to also mobilise domestic investment.
Looks like we have already concluded that there is no money in the country, and that locals can’t invest.
Yet, the same budget projects imports to close the year at US$6,3 billion — where do you think all this money is coming from?
We have an informal sector where a cool US$7 billion circulates.
That EcoCash has cumulatively moved US$11 billion in this economy in about four years. It proves beyond doubt that the domestic sector is a force to reckon with when it comes to having resources to invest.
But what is in it for them?
Or what is not in it?
Are there any apparent freebies that entice them to invest just like it is apparent for foreign investors? Is Government preaching the same prosperity gospel to locals?
The impression one gets from this FDI frenzy is that locals have no role to play in turning around the fortunes of their own economy. Because locals don’t seem to find their role in this whole thing, they end up using their monies to buy cars.
And the motor vehicle importation records can overwhelmingly attest to that.
This economy was built by local investment, with foreign investment only coming in to reinforce.
It is important for the environment to give maximum support to locals who have an extra dollar to spare to ensure that when caught between the choices of either investing or consuming, they will choose to invest.
Many of those who gullibly choose to buy cars end up incurring running expenses they cannot sustain. Eventually, the car breaks down and that money goes down the drain. Money which could have been invested had that person been given enough support to make optimal investment decisions.
Prospective local investors often complain that they have to put twice the effort that a foreign investor puts when coming to invest. The local person is asked to pay bribes, he is frustrated.
Some people in the corridors have petty jealousies and may pull the plug, like refuse to renew your licence, once they see that their kin is getting successful.
The very bureaucrats who are supposed to make things easy for the local will make it difficult for them, to the end that it becomes a very difficult road for them.
The local is condemned to be like that certain Biblical man who went down from Jerusalem to Jericho — and fell among thieves, who stripped him of his clothing, wounded him, and departed, leaving him half dead.
He never can walk that road again!
We tend to forget that domestic savings mobilisation can help in ending poverty as it fosters capital formation and investment to the poor.
The country needs to have a deliberate and robust initiative that encourages people to save.
We can only ensure sustainable growth and development if locals are at the forefront of investing in the economy without hindrance.
Foreign companies coming to invest in the republic tend to remit back their profits to their home countries, which compromises the benefit of improved standard of living and enhanced quality of life.
If we want to get chairs when the music stops, let’s support prospective local investors to make it in this economy.
Do we really have a conducive environment that attracts local direct investment, first and foremost?
Later folks!
