The Sunday Mail
Kuda Bwititi in Victoria Falls
Zim-Asset implementation is well on course, with some targets set to be surpassed by 2018, Finance and Economic Development Minister Patrick Chinamasa has said.
Though a number of factors are militating against the blueprint, Government has adopted strategies to circumvent them and improve economic performance.
Delegates welcome President Mugabe and the First Lady Amai Grace Mugabe to the conference venue on arrival for the closing session of the ZANU-PF conference on Saturday. – Picture by Chief Photographer Believe Nyakudjara.
Minister Chinamasa said this while briefing Zanu-PF’s Annual National People’s Conference on Zim-Asset implementation, and in an interview with The Sunday Mail.
“Notwithstanding the challenging business environment, major positive strides are being made in implementing targets under the Zim-Asset clusters of Food Security and Nutrition, Value Addition and Beneficiation, Social Services and Poverty Eradication and Infrastructure and Utilities, primarily out of our own efforts and limited resources. As such, we are confident that we will be able to even exceed some of our targets by 2018.”
Minister Chinamasa, who is also party Secretary for Legal Affairs, said notable achievements in energy generation projects will see Zimbabwe become electricity self-sufficient soon.
Stability in the financial services sector and re-engaging the international financial community, he said, will also ensure a healthy national balance sheet.
He also spoke of other successes like improved ease and cost of doing business, increased support for distressed industries, shoring up agriculture strategies and advances in value-addition and beneficiation.
Minister Chinamasa said part of the economic revival strategy has seen Government adopting a new roadmap “to make friends with everyone and be enemies with no one”.
Zimbabwe is on course to receiving fresh capital after hammering out an arrears clearance strategy with the World Bank, IMF and the Africa Development Bank.
The minister said: “As a people, we should not feel helpless to deal with adverse factors that affect our economy. Since 2000, we have had the issues of sanctions and the debt overhang militating against us. Our strategy now for re-engagement is to go around the sanctions and the debt issue.
“So, this means that we have to do our re-engagement at a political and at an economic level. As a country, we should be able to be a friend of everyone and an enemy of nobody.”
He added: “. . .The strategy is to ramp up production to make up for revenue by increasing volumes. How much should each and every one of us contribute to our national output in order to double the size of our economy?
“If we assume that 30 percent of our population is meaningfully contributing to our country’s recovery, the answer is US$550 worth of additional output per person per month should see us achieving a GDP in excess of US $27 billion.”
Minister Chinamasa said Zimbabwe had missed some targets under the Food Security and Nutrition Cluster, especially in maize and wheat production mainly due to last season’s drought.
Government has increased irrigation projects via Brazil’s More Food Programme, with similar initiatives expected to involve China, Belarus, the UAE and other countries.
Some positives scored in the Value Addition and Beneficiation Cluster include cooking oil production where 30 million litres out of a target of 27 million litres were manufactured.
A number of struggling companies like Blue Ribbon Foods, Cairns, Olivine, Star Africa and Lobels have been revitalised through assistance from Government, the Reserve Bank of Zimbabwe and investors.
In mining, the gold sector was a major highlight as production is projected to reach 18, 7 tonnes this year, up from last year’s 13 tonnes.
Resuscitation of two key closed mines — Kamativi and Shabanie — is well on course, with 3 000 jobs set to be created.
In the Social Services and Poverty Eradication Cluster, Government has continued to strengthen healthcare delivery, with 100-plus new hospitals expected to be built with funding from China Exim Bank.
In addition, Government will this year float an infrastructure bond to improve facilities at primary and secondary schools.
The bond will be underwritten by school development association levies, and a similar one will benefit higher and tertiary learning institutions.
Under the Infrastructure and Utilities Cluster, major projects underway include construction of Hwange 7 and 8 (thermal power units) at a cost of US$1, 45 billion. Projects by independent power producers, China Africa Sunlight Energy in Gwayi, Southern Energy in Hwange and Lusulu Power in Pungwe are set to add 3 200-plus megawats to the national grid.
Minister Chinamasa projects the economy will grow by 2, 7 percent in 2016.
