Austerity measures under the Transitional Stabilisation
Programme are now being relaxed as they have largely achieved their purpose,
with the economy now poised for growth driven by increased production and
exports, President Mnangagwa said yesterday.
The 2020 Budget to be presented next week will be anchored
on productivity, economic growth and job creation, he said. The robust
engagement and re-engagement policy, together with an improved investment
climate on the back of ease of doing business reforms, will result in new
industries being opened and boost capacity utilisation.
President Mnangagwa was opening the Economic Development
and Financial Indaba in Harare, which ran under the theme, “Driving towards a
2030 economy anchored on production and exports”.
“This indaba comes at a time when my Government has put in
place clear frameworks to transform, industrialise and modernise our economy
towards the speedy attainment of an upper middle income status by 2030,” said
President Mnangagwa.
“The transition to this goal is painful. We had to
institute austerity measures which we are now relaxing since the purpose of
those austerity measures has been achieved in the main, with regards to the
issue of currency as well as economic fundamentals.
“Our next budget is anchored on productivity and economic
growth and job creation.”
President Mnangagwa said the ongoing re-tooling in the
manufacturing sector will spur increased capacity utilisation, resuscitation of
ailing industries and help to establish new ones as Zimbabwe leverages on the
robust engagement and re-engagement policy framework.
The President said as efforts to boost capacity utilisation
pace up, Government was now implementing the Zimbabwe National Industrial
Development Policy (ZNIDP 2019-2023), which seeks to facilitate industrial
growth and development anchored on innovation, investment and exports.
He said the theme of yesterday’s indaba was appropriate as
it brought to the fore, the centrality of production, productivity and a strong
export base “in our desire to accelerate our economic growth”.
To achieve Vision 2030, Government introduced the TSP,
which set a solid foundation to bring about financial discipline, inclusive
economic growth and sustainable socio-economic development.
Said President Mnangagwa: “Going forward, there is need to
harness the diverse opportunities in the various sectors of the economy. To
date, a wide range of sector-specific policies, roadmaps and other
interventions across the industrial, mining and agricultural, tourism,
manufacturing and services sectors, among others that clearly highlight
Government’s support for productivity in the economy.”
The President said there was need to make concerted efforts
to sustain a national economic growth rate averaging seven percent a year.
Recently, the President launched the roadmap for a US$12
billion mining industry to be achieved in 2023, which represents a threefold
rise in output from the US$2,7 billion achieved in 2017.
As the growth in mineral output and revenues unfolds,
linkages were expected with the manufacturing sector, agriculture, services and
other economic sectors, which will in turn, have a multiplier effect on overall
economic growth performance.
Efforts to increase power generation are also “progressing
well”, with Government committing to ensure the right energy mix to guarantee
constant supplies.
Presently, key economic sectors of the economy are groaning
under long hours of power cuts occasioned mainly by low water levels in Kariba
Dam and obsolete equipment at thermal power stations resulting in intermittent
breakdowns.
The availability of water was key to economic growth, and
the President had to visit Morton Jaffray water works in Harare to have a
first-hand appreciation of the challenges. But Bulawayo, which has severe
shortages of raw water, also needed urgent attention. As an industrial hub, it
was critical to attend to that city’s water challenges.
“Guided by national interest, councils must work with
Government with unity of purpose and for the good of all our people, to
holistically attend to the perennial water problems in our urban areas.
“In line with the ongoing devolution programmes, economic
development must be anchored at the local level. Hence, all of us must shift
our mind-sets and promote investment and industry systems at that level,
harnessing the resource endowments in the respective communities,” said
President Mnangagwa.
The National Trade Policy (2019-2023) and the National
Export Strategy (2019-2023), launched by the President in Bulawayo last month,
will drive growth in various economic sectors.
The President rallied stakeholders in various economic
sectors to diversify and increase their export market base.
Government is committed to ensuring efficiency in
bureaucratic procedures during the processing of exports, a move that will help
local companies to also benefit from the African Continental Free Trade Area
(AfCFTA), which presents a market of 1,2 billion people and a combined GDP of
US$2,5 trillion.
President Mnangagwa added that productive sectors will
continue to be supported to grow the economy and improve exports.
Government is also open for dialogue with the business
community and investors in the quest to revive and grow the economy. Herald
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