Finance and Economic Development Minister Professor Mthuli
Ncube has called for patience among citizens, adding that reforms initiated by
Government since late last year were beginning to show signs of economic
transformation.
He said it normally takes up to 18 months for economic
recovery to become visible where austerity measures have been implemented.
Prof Ncube said this in an interview with SABC News last
week on the sidelines of the World Economic Forum (WEF) on Africa in Cape Town,
which ended on Friday.
With budget deficits now a thing of the past following the
economic reforms being implemented under the Transitional Stabilisation
Programme (TSP), Prof Ncube believes the economy has started to turn for the
better.
The TSP is a short-term economic blueprint that runs from
October 2018 to December 2020. “But then, the response of the economy (to reforms)
usually takes longer,” said Prof Ncube.
“There is often an 18-month lag in terms of economic
response to certain economic policy. So, citizens should be patient; we are on
a reform agenda, the economy is in transition (and) we will get there.”
Prof Ncube said the bulk of challenges confronting Zimbabwe
were essentially monetary issues, resulting in high inflation and shortages of
some basics such as fuel.
“So, the monetary issue is being reformed to deal with
those challenges that pertain to currency and fuel challenges in terms of
supply,” he said.
Already, the currency issue has been partly resolved
through the introduction of a single currency for domestic transactions,
effectively removing multiple currencies that had been in use since 2009.
Multiple currencies had exposed the country to unintended
consequences, with some traders demanding foreign currency only, which many
citizens didn’t have.
Experts say the introduction of a single domestic currency
will enable the country to save foreign currency to import essentials such as
fuel, power and industrial inputs, while also building reserves to support the
local unit. Despite the economic challenges occasioned by the economic reforms,
Prof Ncube said foreign investor interest remained high, especially in the
mining sector.
He expressed hope the sector, together with tobacco, will
underpin the country’s economic growth and recovery, at least in the
short-to-medium term.
Prof Ncube said Zimbabwe had at least 40 of the most
valuable minerals in the world, including gold, diamonds, platinum, chrome and
nickel.
He added that in line with the theme of the WEF Africa
2019, which was “Inclusive Growth and Shared Futures in the Fourth Industrial
Revolution”, Government would work hard to support ICT initiatives in the
country, particularly to support job creation among youths.
Prof Ncube was part of President Mnangagwa’s strong
delegation to WEF for Africa 2019, which included ministers Dr Sibusiso Moyo
(Foreign Affairs and International Trade), Engineer Joel Biggie Matiza
(Transport and Infrastructural Development), Advocate Fortune Chasi (Energy and
Power Development) and Reserve Bank of Zimbabwe Governor Dr John Mangudya.
President Mnangagwa has already been invited to next year’s
WEF in Davos, Switzerland, after he impressed its founder and executive
chairman Professor Klaus Schwab with the amount of progress Harare has posted
on reforms.
After a meeting with President Mnangagwa, Prof Schwab said
the fact that Zimbabwe was now posting a budget surplus since January 2019, was
an important piece of news that investors should hear. Herald
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