The Sunday Mail
Editor’s Brief
Victoria Ruzvidzo
Happy New Year to you our wonderful readers!
We thank God for the gift of a new year that brings with it new opportunities, new possibilities, new perspectives and new horizons as we seek to consolidate the gains made, break new records and do things more progressively in our individual and institutional spheres.
Indeed, 2023 presents a whole blank chapter that you and I should take pleasure in filling. It brings a sense of hope as it offers another chance for us to better our lives.
We march on towards Vision 2030 as we achieve milestones under the National Development Strategy 1.
For our economy, the year begins on a somewhat solid footing. We have begun to win the battle against inflation. The December figure released this week showed that the annual rate of inflation dropped to 243,8 percent, confirming the declining trend from 285,1 percent in August.
The central bank is confident this will continue this year, thus inducing more price stability. Add to this the enhancement of the willing buyer, willing seller foreign currency system as promised by Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya this week. This should bring the requisite stability for business and consumers alike to thrive.
Below I reproduce 2023 perspectives by some business representative bodies, academics and economists:
Zimbabwe National Chamber of Commerce chief executive Mr Christopher Mugaga had this to say: Economy in 2023 — Definitely, it may be expected to have some rough edges given that it is an election year and the Global Capital becomes a bit jittery regarding placing their funds into Zimbabwe
However, it is a year the Government has to consolidate on a credible currency reform path we are currently pursuing and we should be alert to guard against currency slip. We need to defend the Zimbabwe dollar at all costs
With a buoyant external sector, where our export proceeds are performing so well, it is time we created financial products in US dollars (a call for our banking sector in particular not to sleep on USD deposits ).
The year 2023 should be a time to move from vanilla banking to a banking model that promotes domestic investment given the debilitating impact of sanctions on local businesses (no wisdom in not developing financial products that makes the Zimbabwean industry competitive).
The year 2023 is also a period Africa should step up its fight against unilateral aggression against weaker nations, for example, sanctions on Zimbabwe . Indeed, the call for the removal of sanctions against Zimbabwe was louder, but Africa needs to step up by even shunning some platforms called for by Western nations until the sanctions are lifted. The platforms include the US-Africa Investment Summit; the EU-Africa Summit; and TICAD, which is promoted by the Japanese.
In 2023, we expect inflation to go down. To achieve single digit annual inflation by December 2023 will require concerted effort from both the fiscal and the monetary side.
There is also need for an urgent dialogue on currency. We need to defend our local currency and also deepen policies that promote its use. The conflicting signal being sent on which currency to use for which transactions must be brought to an end.
Why should some rates /licences /taxes be strictly paid in US dollars? Policies that increase demand for the Zimbabwe dollar must be promoted in 2023.
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Mr Basil Nyabadza, the chairperson of the Traditional Grains Producers Association, was upbeat:
This is the end of 2022. We are all looking forward to 2023. Indeed, it is an opportunity to revisit what transpired in 2022 and what to hope for in the coming year. Certainly, I will look at it from an agricultural point of view. When we look back, in the 2022 season, there were a few graduation points. First and foremost, the yield for wheat was very high, a number we had not attained before.
That is a plus. Let us build on that in the coming year.
We also saw increased production and productivity of traditional grains, again a plus. In a way, we are now seeing the benefits of the foundations that were laid way back for agriculture.
The current Minister of Agriculture is a good listener. He invites input, he invites a participatory approach. Every other week, there are meetings within his ministry with various players in respective segments of agriculture, be it horticulture, cereals, livestock or traditional grains. He is also seeking input. We are grateful and that augurs well with the development and enthusiasm displayed by the respective players.
We are also noticing innovation from our banking sector. They now realise that competition is real and is serious, given that climate change and the illegal economic sanctions are a reality.
Certainly, to Zimbabwe, water is now a challenge. We need to invest in water and those who invest in agriculture are assured of a better return. The whole continent is going hungry because of climate change, so food production, productivity and food surplus are going to be a priority for every economy.
We are pleased with the thrust by President Mnangagwa to continuously push an agenda of self-reliance and value addition. These are plus signs for our economy.
We now notice an accelerated mobility of his office around the country. When he does that, he is listening to respective players and is seeing for himself, and not just relying on his Ministers of State and portfolio ministers. So, these are all positives coming through.
As we prepare for our elections during 2023, we are a better nation. We have now adjusted to realise that there are enemies of Zimbabwe outside our boarders, who want to benefit from the ills generated by high inflation and currency volatilities.
But Zimbabweans are resilient both within and outside the country.
It is for us Zimbabweans to make a difference, and we hope the press will continue to highlight some of the successes that would have been scored.
We would like to see new players coming in at the financial level within the public sector. The private sector must come in through the RBZ.
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Prof Gerald Munyoro is a regional economic development scientist and director of the Graduate School of Business at the Zimbabwe Open University.
Innovation is a must. We want people and investors within our borders to realise that opportunities lie in agriculture. Tobacco and cotton are critical crops. Value addition is also important.
We want to see less export of raw materials.
The Zimbabwean economy is enjoying an economic resurgence, thanks to improved agricultural production in sugar cane in Masvingo province, tea in Manicaland province and tobacco in Mashonaland provinces, among other crops.
The first two are less talked about yet they are bringing in a lot of foreign currency and have the potential to outshine other crops in Zimbabwe if the Government is going to continue investing in these crops through research and development in order to improve quality and yields.
In addition, we also have the marula beverage being processed in Masvingo and has started creating thousands of jobs, just like mauyu in Mashonaland Central province.
These fruits have already stirred excitement in these provinces, with villagers making a killing from selling them to processing companies, and restaurant business is booming.
In addition, Mashonaland East is now a hive of mining activities mainly focusing on lithium.
Other provinces like Midlands, Matabeleland North and South are also involved in the mining of gold, among other minerals.
Mashonaland Central has oil and gas, and here we are talking of big money in the form of foreign currency.
You see the devolution policy at play here, focusing on job creation in marginalised regions such as rural areas.
In the process, peri-urban areas are being created to avoid unnecessary rural-urban movement.
In any case, the urban areas are no longer attractive as they are failing to create jobs and the infrastructure is now dilapidated.
So, the creation of jobs in rural areas and the creation of peri-urban areas are part of the Government’s effort to thank the rural folk, who actively participated in the Second Chimurenga and have, for a long time, not been benefitting from the Zimbabwean cake.
What it means is that all provinces have the potential of boosting their local economies through tourism, and thanks to the Government’s drive in improving infrastructure. The infrastructure projects have seen the creation of thousands of jobs.
The tourism sector is now beginning to thrive as seen in the number of airlines that now fly into our country.
Roads, dams, solar energy and ICT have brought excitement to rural communities, with “growth points” now a hive of entrepreneurial activities.
In short, 2023 looks bright but there is need to keep encouraging our entrepreneurs to be involved in local economic activities as a way of reassuring the people of Zimbabwe that nyika inovakwa nevene vayo.
Entrepreneurship is the way forward in order to meet the Vision 2030 goal of an upper middle-income economy.
There is need to discourage people from buying goods from outside the country as this is detrimental to our economic development.
Incremental wealth is created by producing goods and services for export and this is possible if we discipline ourselves and invest in entrepreneurial creativity and innovation, especially at college and university level.
In short, we are saying let us create employable graduates, graduates who are ready to start their own businesses or to be employed.
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Zimbabwe Anti-Corruption Commission (ZACC) chairperson Mrs Loyce Matanda-Moyo is quoted elsewhere in this paper stressing the importance of joint efforts in fighting corruption. She says in part: “Zimbabwe has a National Anti-Corruption Strategy 2020-2024 that provides a multi-stakeholder approach in dealing with corruption. All institutions — the Government, Parliament, the Judiciary, civil society organisations and the public — have roles to play in terms of fighting corruption.
It is not only a ZACC fight but a stakeholders’ effort. All sectors should be involved for this scourge to be dealt with effectively. As ZACC, we are leading in this fight and require maximum support from all sectors. Some of the criticism is based on the limited understanding of the functions of ZACC and not being acquainted with the fact that corruption cannot only be fought from a criminal perspective. The fight needs all hands on board and that includes individuals, civic society, churches, institutions, politicians, and the need to see the importance of public education, compliance and knowledge to buttress efforts to fight corruption.
In God I Trust!
Twitter handle: @VictoriaRuzvid2; Email: [email protected]; [email protected]; WhatsApp number: 0772 129 972.
