President Emmerson Mnangagwa wants a major policy shift and
a raft of reforms to revive the shrunken economy, the Zimbabwe Independent has
heard.
This comes as Mnangagwa’s advisors say the new president is
also keen on an inclusive cabinet which may include members of the opposition
and technocrats if they agree to work under his Zanu PF administration.
“As part of his inclusive strategy to get the best
competencies and brains in his cabinet to fix the economy, he will extend
invitations to individuals from across the political divide and technocrats who
wish to serve in his new government,” a Mnangagwa advisor said. “It is not
going to be a coalition or an inclusive government as such, but a few
individuals with technical expertise will be invited to serve in the new
government.”
Mnangagwa, an admirer of Chinese reformist leader Deng
Xiaoping, wants to initiate economic reforms which will, among other
objectives, address issues of investment, production, the ease of doing
business and the controversial indigenisation policy.
The new president also wants massive parastatal and civil
service reforms, while also tackling corruption in government. He further wants
to re-engage the international community to end Zimbabwe’s isolation and
attract foreign direct investment (FDI).
“There is definitely going to a major policy shift under
the new administration which officially starts today,” a close Mnangagwa
advisor told the Independent yesterday. “We will sit down urgently and come up
with a new economic plan and reform agenda to ensure recovery, growth and
sustainability.”
Mnangagwa will take over amid pressure to fix the economy
as fast as possible to return the country to a recovery and growth path.
Before its deterioration and ravaging by hyperinflation and
other problems in the past 17 years, Zimbabwe was one of the most advanced
economies in Africa. It was the most industrialised economy in sub-Saharan
African besides South Africa.
While many of the country’s pillars and underlying
strengths remain, some of its industrial and agricultural base has since
severely eroded and collapsed.
“Systematic and immediate interventions have to be made
quickly,” another official close to Mnangagwa said. “As an economy operating in
a multi-currency system, nominally dollarised economy in other words, we have
many problems including liquidity crunch, cash shortages, diminishing net
capital flows and an expansionary fiscal stance which has generated the acute
cash shortages that has prompted the use of bonds notes; a quasi-currency
instrument amid imposition of controls over capital and current account
transactions.
“With reengagement with creditors delayed, access to
external financing is limited, and the fiscal deficit is being financed by
domestic borrowing at an unsustainable pace. We need to address these issues
through a new economic recovery plan and policy framework that speaks to
creating a friendly business environment and attracting FDI.”
Mnangagwa’s allies say he admires Deng a lot. The late
Deng, who took over after Mao Zedong in 1978 until his retirement in 1992, is
the architect of China’s far-reaching market economy reforms and prosperity.
Mnangagwa also wants to push re-engagement process with the international
community. The gravity of the economic situation has forced the Zimbabwean
government into a process of re-engagement with the West.
Re-engagement is primarily aimed at attracting new money to
ease the crisis of liquidity and fiscal deficit. The focus is on improving
business confidence and an intensified re-engagement of the international
financial institutions.
Sources said Mnangagwa will relaunch the re-engagement
process with new vigour to ensure Zimbabwe becomes part of the community of
nations again. This will include going back to the Commonwealth and engaging
the European Union and the Unites States, among other countries. Zimbabwe left
the Commonwealth in 2003.
“We tried to re-engage and there was some bit of progress
on economic reforms,” a senior minister in Mugabe’s outgoing government said.
“But there was little progress on governance and human rights reform which are
also equally important. It is not just about economic reforms, going forward we
also need to ensure we restore the rule of law, property rights and uphold
human rights for the country to recover and the economy to grow.”
In addition, a source said, Mnangagwa wants to “refine” the
indigenisation policy — widely seen as a barrier to the much-needed FDI — as
the current version lacks clarity and consistency, among other shortcomings.
The issues of parastatal and civil service reforms are said to be also at the
top of Mnangagwa’s agenda. “We need massive parastatal reforms,” the advisor
said. “The civil service has to be rationalised to ensure it is right-sized and
efficient.”
Upon his arrival from exile, Mnangagwa assured thousands of
his supporters on Wednesday that his new government will focus on the economy
and jobs, as well as re-engagement already underway.
“We want to grow our country. We want peace in our country.
We want jobs, jobs, jobs!,” he said. “We need also the cooperation of our
neighbours in Sadc, the cooperation of the continent of Africa, we need the
cooperation of our friends outside the continent. That we shall achieve. I am
already receiving messages of cooperation and support for us to grow our
economy.”
Britain, which always wanted Mnangagwa to replace Mugabe,
sent its Minister of African Affairs Rory Stewart to attend the new president’s
inauguration and re-engage.
“Minister for Africa Rory Stewart arrived in Harare on 23
November,” Britain said. “He will hold meetings with a range of political
leaders from various parties, business representatives, human rights groups,
NGOs and civil society.”
Stewart said the resignation of Mugabe, following his
“ruinous” 37-year rule, would give Zimbabwe the opportunity to set its fragile
economy on a firm growth trajectory. Zimbabwe Independent
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