The Sunday Mail
Zimbabwe is part of the global village and as such, it cannot live as an island. The thrust to engage is well thought. President Mnangagwa’s inaugural State of the Nation Address (SONA) was spot on.
The SONA built on his inaugural speech, his speech at the Zanu-PF Extraordinary Congress and the Budget Statement.
From an economics perspective, this alignment of his speeches tells us that there is certainty and consistency on policy issues.
Key issues which were covered in the SONA are liquidity challenges, parastatals reform, corruption, productivity, international re-engagement and free and fair elections.
Production
The President underscored that Government will put effort towards increasing national productivity across all sectors of the economy with a view of building export capacity and substituting imports.
In his remarks, he emphasised that targeted effort will be applied towards reducing country risk, improving service delivery and reducing budget deficits.
The President also outlined expanded Command Agriculture programmes extending to small grains, maize, soya- beans, tobacco, cotton, livestock and fisheries and wildlife conservation in addition to maize and local content policy as measures to foster national production.
To foster implementation, various arms of Government have been asked to come up with 100-day performance targets. This is a new paradigm shift which is expected to change this country for good.
Liquidity
Solving productivity challenges is a huge step towards addressing liquidity challenges. For example, if we are able to substitute unnecessary imports such as cereals, vegetables, papers, plastics, soya- beans, wheat and pharmaceuticals whose import bill exceeds $2 billion annually, we will be able to domesticate that cash and ease liquidity challenges.
However, beyond this measure, SONA unpacked the $1,5 billion Afreximbank facility which is aimed at stabilising liquidity via a $600 million nostro stabilisation fund, $150 million credit guarantee facility and the balance going towards retooling in manufacturing and mining sectors.
This facility, together with 100-day amnesty for cash externalisers and cash barons, will go a long way in alleviating liquidity challenges.
If these measures are implemented effectively, we will be able to withdraw cash from the ATMs come March 2018.
Parastatal reforms
Here again, the President was spot on. Statistics show that State-owned enterprises (SOEs) at their best used to contribute about 60 percent of the Gross Domestic Product (GDP).
To date, the SOEs are contributing a meagre 2 percent of GDP.
This therefore calls for the urgent need to reform the SOEs and where necessary dismantle some.
Corruption
The President didn’t mince his words on dealing with corruption both head on and through the use of information communication technologies.
The good thing is that he is walking the talk as we are already seeing heavy- weights that were previously untouchable being brought before the courts.
International re-engagement
Zimbabwe is part of the global village and, as such, it cannot exist as an island. The thrust to engage is well thought. We need it like yesterday, it will help this country address country risk and negative perception which are among key impediments to Government efforts in attracting both aid and foreign direct investments.
Interestingly, just a day after his SONA, the President hit the ground running by engaging South Africa and Zimbabwean Diaspora in that country.
Free and fair elections
The President reiterated his desire to hold credible free and fair elections. The importance of free and fair elections cannot be overemphasised. If we hold credible elections in 2018, we will undoubtedly build a foundation which will see Zimbabwe benefiting from foreign direct investments and massive international support which are key ingredients of transforming the country into the Switzerland of Africa in five years.
I appeal to the President to undertake the following measures:
Allow the Diaspora community to cast their votes;
Implement electoral reforms derived from dialogue with all the political parties, civil society and other progressive agencies;
Invite not only regional election observers but also international observers; and
Walk the talk on electoral reforms and the run- up to the 2018 elections.
This article was compiled by Dr Gift Mugano, the Registrar of Zimbabwe Ezekiel Guti University. Feedback: [email protected]; Cell: +263 772 541 209
