The Sunday Mail
Taurai Changwa
Zimbabwe has endured more than two decades of economic challenges, which have eroded the socio-economic fibre of the nation and most citizens are understandably anxious to see progress, especially under the new Government led by President Mnangagwa.
However, progress is not coming as fast as many expect.
In such circumstances, hope gives way to cynicism and expectations gradually breed pessimism.
Development economists have, however, for long established that economic development is a process and not an event.
To put it glibly, Rome wasn’t built in a day.
It seems a bias towards politicking has arrested the country’s development for quite some time, but encouragingly President Mnangagwa is now talking of a shift from political nationalism to economic nationalism.
It is the view of the current administration that Zimbabwe is perhaps two decades behind its peers in terms of development and “to catch up” it has to “leapfrog”.
However, for this to be successful, there has to be an elaborate process to re-engage with the international community and this is a process and not an event.
Also, for this to be successful, the new administration has to build confidence displayed by its ability to stay on the course of reforms, and this is a process and not an event.
Restoring sustainable foundations for future economic growth is also a process and not an event.
What is, however, heartening is that Zimbabwe is now on an irreversible path towards reform.
Critics and cynics will always be on Government’s case at every turn, but it must be noted that since November 2017 to date, there have been great changes.
It is a fact that investors are now warming up to Zimbabwe, which simply means the new administration has somewhat been successful in reversing the deteriorating sentiment towards Zimbabwe. And this is a first step towards progress.
And now the challenge is to continue deepening reforms, especially in terms of ease of doing business, in order to shore up investment into the country.
President Mnangagwa has already stated that his administration is pursuing investment-led economic growth, and for this to happen the right conditions have to be created for capital and investment to feel comfortable.
There is clearly a gestation period for most of the investment commitments that have been made thus far to be translated into tangible results.
And everyone – everyone – has a role to play to make it successful.
It will be gravely dishonest to say that there has been little progress that has been recorded so far.
The more the new Government continues to lay the pillars for sustainable economic development, the more progress will begin to set in.
So, yes, the pace may not be pleasing to some but indeed there is great change in Zimbabwe.
Looking at China as an example, the pace of economic change in China has been extremely rapid since the start of economic reforms just over 25 years ago.
According to official statistics, economic growth has averaged 9,5 percent over the past two decades, and it seems likely that this will continue.
The country’s national incomes have been doubling every eight years.
Such an increase in output represents one of the most sustained and rapid economic transformations seen in the world economy in the past 50 years, according to researchers.
This extraordinary economic performance has been driven by changes in government economic policy that have progressively given greater rein to market forces.
But even those who have studied the political economy of China know fully well that the Asian country had to grapple with serious headwinds before it realised true progress.
It took time to restructure the State-owned enterprises which, like in Zimbabwe, were a drag on Beijing.
Likewise, defining the role of market forces within the context of a socialist country proved to be doubly onerous.
For Zimbabwe, given the interventions that have been made so far through the amending of the empowerment regulations, including an aggressive re-engagement drive, it might be proper to assert that Zimbabwe is slowly emerging from the rut.
More investments, will create more jobs and more incomes, will create real demand, and these are the key ingredients of a vicious economic cycle for the economy.
Zimbabwe already has the infrastructure and what was lacking is the capital, which was drained by the poor policies of the past.
Fresh capital will definitely breathe life into companies.
What is needed in Zimbabwe now is to stop focusing on politics and start focusing on building our country together.
Zimbabwe needs to trade with everyone and economic sanctions are not good for our country.
The new dispensation has made it clear that it is ready to work with everyone who is prepared to better Zimbabwe.
Economic sanctions will not hurt politicians, but the ordinary Zimbabweans. Politics destroyed our economy and selfish tendencies surely created the mess we currently see.
But equally, a peaceful environment is a pre-requisite for quality economic growth.
All political leaders should unite and work together for a better Zimbabwe.
Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe, a certified tax accountant and an estate administrator, with has vast experience in tax, accounting, audit and corporate governance issues. He is a director of Umar & Tach Advisory and writes in his personal capacity. Feedback: [email protected] and WhatsApp +263772374784
