Opinion / Columnist
Mall of Zimbabwe - Sam Levy's: When development ripples negative competition?
13 Nov 2014 at 16:41hrs | Views
I had a time reading through Eric Bloch's article titled 'Infrastructure upgrading key to economic recovery' that once appeared in the Zimbabwe Independent, may his dear soul rest in peace.
The rendition rekindled in me the need to have a re-look at the country's infrastructure which could be slowly heading towards a moribund.
One of the major challenges facing Zimbabwe now and in the decade ahead is the rehabilitation of the existing infrastructure and the addition of new capacity to meet immediate and future demand in both urban and rural areas. The current problems that needs solution is congestion (as evidenced by the situation in the country's capital), investor stagnation and the dwindling Foreign Direct Investment inflows (FDI).
Although we urgently require an injection of foreign investments. The country also utilizes local investment opportunities that are easy to negotiate and reach settlements with. Local initiatives on their own play a most vital part that tend to automatically draw in foreign investments, enhancing the country's competitiveness.
To this effect, Augur Investments' Mall of Zimbabwe to be situated in Borrowdale has always found me willing to embrace it as a possible panacea to the country's economic ailments. It directly addresses congestion, dispirited FDI's and growing unemployment. Only during the construction phase, the Mall of Zimbabwe promises to create about two thousand jobs, and the number expected to magnificently spring at completion.
As a country whose investment and infrastructural outlook is on a downward slope, having slipped from a ranking of 157 out of 185 countries in 2011 to 173 in 2012, continually degrading with years, we are in a serious need for a meaningful investment of this sort.
Impediments to investment include limited resources, a high cost of capital, dilapidated infrastructure, obsolete technologies, power and water shortages. And these points out to the current Zimbabwean state of affairs.
Infrastructure is indispensable to achieve the main development targets in developing countries, such as urbanization, industrialization, export promotion, equitable income distribution, and sustainable economic development.
The country's major task now is coming up with tangible development projects that can rightfully give breath to the Zimbabwe Agenda for Sustainable Socio-economic Transformation (Zim-ASSET) blueprint. This will save the economic blueprint from extinction, from being immersed into surficial inter-corporate friction, graft and electoral frenzy. For when it becomes electioneering time, we are all likely to doze off and veil from reality, till the launch of manifestos that would signal the advent of 2018. What I urge is for us to work now.
I have followed with keen interest matters concerning the country's development trajectory, following with keen interest President Mugabe's applaudable efforts of reviving the economy which includes bi-lateral engagements with the Chinese People Republic and recently, the Russian community. All of which having come on board for a good course considering that our eye sight is dilating from only concentrating in the 'east'. We have to leverage on that with expedience.
An artistic illustration of the Mall of Zimbabwe
What is equally important is to embrace and encourage home grown solutions which offer an unfluctuating input towards the envisaged 'job creation' and investment excitement, ultimately proffering a positive contributing towards Foreign Direct
Investments.
Most politically aligned perceptions have accused the ruling party of struggling to meet the mandates comprised in the 2013 electoral manifesto, which goes obsolete come 2018, largely pinning on its perceived 'weakened capacity to open employment avenues' mindless of the truth that Zanu PF's quest as a governing institution involves an incorporation of ultra-investment facilitation to meet these mandates in good time.
Hence, Zimbabwe's major task from here on is to adventure on a voyage of exploring ways of delivering the (2) two million promised jobs and ensuring economic endurance. But, this is not an easy task whose realization is/ should not only be confined to a solitary implementation and testing of strategies. It works with partners. Private economic players and strategic partnerships.
Another fundamental headache for Zanu Pf after the electoral victory has been grossly lying on landing sincere settlements with non-institutionalized development partners.
My sojourn to the Millennium Park.
Awakened by Bloch's literary insistence, I had little choice but to quench my anxiety on the slowly emerging complex which I am aware has been booked out of space in time before its completion. The Mall of Zimbabwe will tower right in the heart of the Millennium Park and breathe fresh air first to Borrowdale, to Zimbabwe, to Africa, and to the world. I made it there. The Millennium Park lies adjacent to the Borrowdale race course.
Should I say I was let down or less intrigued by what I gathered. I spoke to a handful residents who talked with an air of stark desperation. An air of utmost dejection and ennui.
I realized how much residents are always ready to bolt at anything that threatens advancement in their livelihoods in great significance of their common desires and expectations. I was dared to enquire on de jure legitimacy of the Sam Levy complex's planning, dared to check the availability of its sewer system, and dared this and that. Dared to roll back into the Levy's formative years, grinding into all salient scenes by bits. Then the issue of a fierce competition came out in the open. But why should the Sam Levy's run so scared? What had these residents seen?
Soon, I was introduced to the new script. The James Bond theatrical, I equated.
Reprieved that for once I was out of political terrains, into business, into the core of community development. I realized everything is just but political, although here projected in the sobered form of 'business competition'.
"Thieves smashed and grabbed cars at the robots of the park. Rubbish was dumped and top soil stolen", they narrated. This sounded convincingly retrogressive. I pause on that.
But there is always a good side of competition. One Thiel's background as an investor makes his position on competition less surprising. As someone who has invested time and considerable sums of money in businesses, he's no doubt less of an advocate of the 'innovation by competition' argument, which sees the best services flourish and weakest perish. Peter Thiel is simply of a foreign national. And an investor.
The Mall of Zimbabwe is situated just next to the Sam Levy's village. Having enjoyed a somehow monopolistic clientele base in the known 'affluent suburb', things will be expected to slightly tilt for the Levy's. The Mall will compel a further upgrading of the village and a betterment of services.
It emerged City Fathers confirmed recently that the Millennium Park retail center has been in the cards since 1973 when the Master Plan of the city was designed and zoned. The Sam Levy's, it is alleged, was never zoned as a retail center and was filled with controversy on how they achieved this with help from contacts high up.
Competition helps investment performance - and sometimes it hurts. Urges Thiel.
Following the noted deterioration in the country's infrastructure, the Government of Zimbabwe is prioritizing infrastructure development for energy, particularly electricity and bio fuels, rail, road and airport rehabilitation and upgrading (fortunately another area of Augur Investments' intervention). Urban water reticulation and waste management, dam construction and irrigation development and most importantly 'public amenities'.
All this can be achieved through Public Private Partnerships (PPPs) and Joint Ventures which the Zimbabwean Government has dearly adopted. And this faculty demands an immediate financial injection of a staggering U$15 Billion dollars, as according to revelations by the Ministry of Finance.
Zisunko Ndlovu is a social development practitioner and political writer from Binga, Zimbabwe. Send comments and suggestions to: kubutonga@gmail.com
Source - Zisunko Ndlovu
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