The Sunday Mail
ZIMBABWE’s economy is poised to grow by 3,5 percent this year. We are already 21 days into 2024 and we have to get going.
Victoria Ruzvidzo
Editor’s Brief
The International Monetary Fund (IMF) and the World Bank (WB) are convinced that indeed this feat will be achieved despite some of the challenges Zimbabwe faces.
Of course, real work needs to be put into our processes and systems to yield what we desire to see. It is thus critical at the outset that we take a deep analysis of the attributes that will leverage this growth, or even exceed expectations.
Already, the rains pounding our country in recent weeks, against previous fears of drought, have restored hope that agriculture will do well, and those sectors that depend on it for raw materials must be smiling after all.
God is good!
So, this week we will begin a series that looks at factors that will ensure at least a 3,5 percent growth rate is achieved.
Generally, we are all aware of Zimbabwe’s endowments, but it is critical at this juncture to consider them and see how best they can drive growth. We need to sweat our assets to realise the growth that we cherish.
- Natural resources
Zimbabwe boasts a plethora of natural resources, including vast mineral deposits, fertile agricultural land and diverse wildlife.
The mining sector, in particular, holds immense potential for growth, with significant reserves of gold, platinum, diamonds, lithium, chrome and at least 38 more.
Five years ago, the mining sector was earning US$2,8 billion, but through business-centred policies and a more favourable environment ushered by the Second Republic, the sector has surpassed the US$12 billion target set out in the National Development Strategy 1.
This shows the vast potential that Zimbabwe’s mining industry has in growing the country’s economy.
The Government has initiated transparent and investor-friendly policies that have seen Zimbabwe attracting foreign direct investment (FDI) and leveraging its mineral wealth to drive economic growth. If sustained, this will undoubtedly go a long way in fostering economic growth, with the revenue generated from sustainable mining practices utilised to develop key infrastructure, improve education and healthcare systems, and foster innovation and entrepreneurship, among others.
Zimbabwe is also endowed with fertile soils and a favourable climate, which continue to present an opportunity for increased production and productivity in the agriculture sector.
In recent seasons, this country has broken successive wheat production records and registered new highs in tobacco and maize production, too.
Zimbabwe surpassed its agriculture target of US$8 billion ahead of schedule, prompting a review to US$13,75 billion by 2025. All these efforts have seen the country achieving food self-sufficiency, which should be consolidated this year.
By promoting agribusiness and providing support to smallholder farmers, Zimbabwe can enhance food security, increase exports and attract investments in value-added agro-processing industries.
- Human capital
One of our greatest attributes as Zimbabwe is our human capital. Zimbabwe possesses a highly educated workforce, with a strong emphasis on education and a tradition of academic excellence that is the envy of many worldwide. We are renowned for our hard work and tenacity, and this can surely be used to our advantage as we strive to make the economy tick this year.
By leveraging our skilled human capital, the country can establish itself as a regional hub for knowledge-intensive industries such as information technology, finance and other professional services, which will engender more innovations while production levels will go up.
Investing in education and vocational training programmes, coupled with a focus on research and development, will promote innovation and entrepreneurship, creating job opportunities and attracting foreign investment in high-value sectors.
Increased research and development are critical drivers of economic growth.
“Research outputs must feed into our growing industries and industry must equally inform, guide and request research into pertinent industrial priorities towards improving production and productivity, as well as the range of products and services.
“This provides scope for the development of strategies that must scale up high-impact research outputs for addressing the present and future socio-economic and scientific needs of our nation,” said President Mnangagwa at the National Research, Science, Technology and Innovation Conference in October last year.
Zimbabweans are renowned for their resilience. They always find ways to go overcome challenges instead of surrendering to fate or resorting to the streets. They have survived probably the worst case of contemporary hyperinflation (circa 2006 to 2009). This was something that required people of steel.
We all know the phase.
Even my mother could define inflation and its effects after growing through that phase.
Indeed, we are good at finding solutions and hustling for survival.
The growing informal sector attests to this. We are not a lazy lot. We are solution-oriented and this works well for the economy.
- Renewable energy
It is another forte that Zimbabwe has enormous potential in, especially following the findings of gas reserves in Muzarabani.
The country also has potential for renewable energy, particularly in solar and hydroelectric power. With an abundance of sunshine throughout the year and several rivers suitable for hydropower, the country can capitalise on these resources to enhance energy security, reduce reliance on fossil fuels and attract investment in renewable energy infrastructure.
The development of renewable energy projects will not only create jobs but also help mitigate climate change and position Zimbabwe as a regional leader in sustainable development.
Already, the Government and Dubai-based company Blue Carbon General Trading LLC signed a conservation agreement, showing Zimbabwe’s commitment to generating high-quality carbon credits.
The agreement will see Zimbabwe getting US$1,5 billion through carbon credits financing.
- Arts and culture
Additionally, Zimbabwe’s vibrant arts and cultural heritage offer avenues for economic growth. The country’s rich music, literature and craft industries can be harnessed to promote tourism, create employment opportunities and generate revenue. By supporting and showcasing local talent, Zimbabwe can develop a unique cultural brand that appeals to international audiences, thereby stimulating economic growth in the creative sector.
- Strategic geographical location
This is one advantage that can be harnessed for economic gains this year as the country offers access to regional markets and trade corridors.
The country can leverage this advantage by improving its transportation and logistics infrastructure and facilitating the movement of goods and services more smoothly.
By developing efficient transport networks, such as modernising road and rail systems and upgrading airports as is currently the case, Zimbabwe can enhance its connectivity within the region and attract more investment in manufacturing, logistics and trade-related industries.
Under the Emergency Road Rehabilitation Programme 2 (ERRP2), roads are being rehabilitated and the new-look US$153 million Robert Gabriel Mugabe International Airport commissioned by the President last year have set the tone for this.
A World Bank overview of Zimbabwe’s economy has forecast good fortunes for the country this year.
“Zimbabwe has strong foundations for accelerating future economic growth and improving living standards.
“The economy has excellent human capital, comparable to that of upper-middle-income economies in Sub-Saharan Africa, although some skill shortages are emerging in some sectors. Moreover, Zimbabwe possesses abundant mineral and natural resources that, if well managed, can support the country’s development objectives,” said the financial institution.
Zimbabwe’s tourism sector is another game-changer as the country strives to realise a US$5 billion sector by 2025.
The country is known for its rich cultural heritage, diverse wildlife and iconic natural landmarks such as Victoria Falls, Hwange National Park and the Great Zimbabwe ruins, just to name a few.
- Tourism
The tourism sector has significant potential to attract international visitors, create employment opportunities and generate foreign exchange earnings.
It is heartening to note that countries such as Iran, which has a gross domestic product of US$366 billion, have expressed commitment to growing Zimbabwe’s tourism and appeal as a tourist destination of choice.
By investing in infrastructure, promoting sustainable tourism practices and showcasing its unique attractions, Zimbabwe can tap into this potential and make tourism a key driver of economic growth.
Zimbabwe’s economic potential is vast and the nation is poised to embark on a transformative journey towards sustainable growth in 2024 and beyond. By leveraging its abundant natural resources, skilled human capital, renewable energy potential and strategic geographic location, this country can attract investment, create employment opportunities and diversify its economy.
Focusing on these key attributes, Zimbabwe can unlock its economic potential, improve the standard of living for its citizens and position itself as an emerging economic powerhouse in the region.
Next week, we look at other factors the economy can leverage on.
In God I Trust!
X handle: @VictoriaRuzvid2; Email: [email protected]; [email protected]; WhatsApp number: 0772 129 972.
