Opinion / Columnist
The world is open for Zimbabwean business
15 May 2018 at 18:46hrs | Views
Since President Emmerson Mnangagwa came into office he has successfully reversed the trends of isolation that have been inhibiting Zimbabwean growth for many years. His mantra of "Zimbabwe is open for business" has been triumphant in attracting more than $11 billion in foreign investment promises, with the number seemingly rising by the week to ever greater heights.
However, this is not just a slogan, and it is clear that not one dollar of this investment would have been possible were it not for very real action to attract investment, reform laws and policies which stunted this type of investment in the past and a raft of attractive measures which is meant to bring into our country foreign currency and create lots of new jobs.
Now it seems that not only is Zimbabwe open for business but the world is becoming more open to business from Zimbabweans.
According to recently released official trade figures, exports increased by 46% to $329,6 million in the first four months of the year compared to $225,6 million during the comparable period last year.
The improved export performance has been largely attributed to measures the Government and the Reserve Bank of Zimbabwe have announced to boost domestic output and tame the trade imbalance.
This is good news for Zimbabwean businesses, their owners and the people that work for them.
It is also good for the country generally because it means that foreign currency is coming into Zimbabwe in greater amounts and will filter down, easing the cash crisis in the medium to longer term.
The liberalisation policy, initiated by the government has incentivised export to close the trade deficit.
One such measure was the announcement that Zimbabwean cotton growers will be paid an export incentive of 10% as the government moves to boost production of the crop. In a statement released yesterday, Reserve Bank Governor, Dr John Mangudya, said farmers will also get $40 cash per each bale sold with the balance being deposited into the grower's account or mobile wallet account.
Cotton is an important crop and farmers require sufficient funding and government assistance to get back on its feet. It provides raw materials for the textile industry, cooking oil and stock feeds manufacturers, so the impact of this announcement is far further reaching than the immediate cotton farming industry.
These are the kind of interventions that are necessary to turn our economy around.
While many Zimbabweans may have not felt the change in their financial status since President Mnangagwa took office, in time all will. The economic indicators are pouring in every day of an economy slowing turning around after years of neglect. The good days are fast approaching when Zimbabwe will once again become the breadbasket of Africa.
There are those who spout populist answers to our economic challenges, like claiming that our cash crisis could be solved in days. However, these types of impossibly rash and impulsive statements are either known lies or made by people who do not understand economics.
An ailing economy has to be carefully turned around, laying down foundations for growth and progress. This process is not immediate; it can take months and even a few years. However, as we have seen elsewhere in the world, those who try to act impulsively with little understanding usually end up making the situation far worse.
There is no such thing as a national get-rich-quick scheme.
Careful planning can ensure that all the building blocks are in place to help the lives of the average Zimbabwean, and many major international financial institutions have declared their satisfaction with the work President Mnangagwa and his government are doing.
Nevertheless, words and statements from experts are nice, massive increase in the export of Zimbabwean produce is far better.
Money is coming in, jobs are being created and our days of isolation are over.
The new Zimbabwe is clearly opening a fresh two-way street to the world. Zimbabwe is open for business and Zimbabwean businesses are now open to the world.
However, this is not just a slogan, and it is clear that not one dollar of this investment would have been possible were it not for very real action to attract investment, reform laws and policies which stunted this type of investment in the past and a raft of attractive measures which is meant to bring into our country foreign currency and create lots of new jobs.
Now it seems that not only is Zimbabwe open for business but the world is becoming more open to business from Zimbabweans.
According to recently released official trade figures, exports increased by 46% to $329,6 million in the first four months of the year compared to $225,6 million during the comparable period last year.
The improved export performance has been largely attributed to measures the Government and the Reserve Bank of Zimbabwe have announced to boost domestic output and tame the trade imbalance.
This is good news for Zimbabwean businesses, their owners and the people that work for them.
It is also good for the country generally because it means that foreign currency is coming into Zimbabwe in greater amounts and will filter down, easing the cash crisis in the medium to longer term.
The liberalisation policy, initiated by the government has incentivised export to close the trade deficit.
One such measure was the announcement that Zimbabwean cotton growers will be paid an export incentive of 10% as the government moves to boost production of the crop. In a statement released yesterday, Reserve Bank Governor, Dr John Mangudya, said farmers will also get $40 cash per each bale sold with the balance being deposited into the grower's account or mobile wallet account.
Cotton is an important crop and farmers require sufficient funding and government assistance to get back on its feet. It provides raw materials for the textile industry, cooking oil and stock feeds manufacturers, so the impact of this announcement is far further reaching than the immediate cotton farming industry.
While many Zimbabweans may have not felt the change in their financial status since President Mnangagwa took office, in time all will. The economic indicators are pouring in every day of an economy slowing turning around after years of neglect. The good days are fast approaching when Zimbabwe will once again become the breadbasket of Africa.
There are those who spout populist answers to our economic challenges, like claiming that our cash crisis could be solved in days. However, these types of impossibly rash and impulsive statements are either known lies or made by people who do not understand economics.
An ailing economy has to be carefully turned around, laying down foundations for growth and progress. This process is not immediate; it can take months and even a few years. However, as we have seen elsewhere in the world, those who try to act impulsively with little understanding usually end up making the situation far worse.
There is no such thing as a national get-rich-quick scheme.
Careful planning can ensure that all the building blocks are in place to help the lives of the average Zimbabwean, and many major international financial institutions have declared their satisfaction with the work President Mnangagwa and his government are doing.
Nevertheless, words and statements from experts are nice, massive increase in the export of Zimbabwean produce is far better.
Money is coming in, jobs are being created and our days of isolation are over.
The new Zimbabwe is clearly opening a fresh two-way street to the world. Zimbabwe is open for business and Zimbabwean businesses are now open to the world.
Source - Joice Tsitsi
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