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2016 Economic Growth possible

27 Nov 2015 at 11:12hrs | Views
Zimbabwe is able to resuscitate its economy in the coming year. It is worrisome that analysts were denouncing the 2.7 percent economic growth that came out in the budget strategy paper that was prepared by the Treasury.

There are a number of projects currently taking place under Zim-Asset. Chief executive of Zimbabwe National Chamber of Commerce (ZNCC), Christopher Mugaga criticized the economic growth projection saying the current electricity situation was going to affect the manufacturing industry extensively.   

However, Mugaga should be advised that there is a viable project (Kariba South Power extension) in the energy sector, which upon completion will assist and put to rest the current electricity crisis which the nation is presently facing.
Also, the Chinese energy firm Chint electric company, through its local partner Intratrek Zimbabwe is in the venture of power generation. This will be done through establishing a solar plant in Gwanda. Mounting a solar plant project is a positive move which I believe will reduce Zimbabwe's crippling power deficit, thereby reviving the manufacturing industries.

In August, President Robert Mugabe delivered a speech on the State of the Nation address which focused on the economic enablers. Revitalization of the agricultural sector and agro processing industries is one of the key factors on the economic growth plan.
Zimbabwe is poised to restore its bread basket status of Southern Africa if the agriculture sector is revived.

Also, Finance and Development Minister, Patrick Chinamasa noted the Government was promoting the resuscitation of the cotton industry. While delivering the 2016 budget, Minister Chinamasa noted that the Government will provide cotton farmers with free inputs for three consecutive seasons. This will boost the production of cotton hence reviving textile firms which are momentarily lying idle.

Considering that the nation received farming equipment from Brazil this year, recovery of the agricultural sector will definitely increase food security. Most areas with low rainfall received irrigation machinery which will also contribute in boosting food security.

Surely, the projection that Zimbabwe's economic growth rate will increase in 2016 cannot be dismissed. Implementation of mega deals that were signed between Zimbabwe and China is another contributing factor that will support the nation's growth rate. It is pleasing that Chinese President, Xi Jinping is expected in the country next month on a state visit. It is imperative to note that the state visit by President Jinping is projected at uplifting the political and economic bond that exists between the two nations.

Implementation of mega deals signed between the two Governments, Zimbabwe and China will witness miserable moments for prophets of doom like Gutu who had been always berating the Look East Policy.

Recently, a Nigerian billionaire, Aliko Dangote was issued with licenses for three projects by the Zimbabwe Investment Authority. The three projects on which the Dangote Group wishes to invest on are energy plant using coal, cement manufacturing plant and a coal mining venture. Full implementation of such deals will indeed add value to the economic growth of the nation.

Myopic politicians like MDC-T Spokesperson, Obert Gutu should be ashamed of failing to appreciate the efforts that the ruling Government is making in trying to revive the economy. Gutu has been nonsensically criticizing the economic blue print, Zim-Asset saying it was failing to deliver its promise within the set time period of 2013 - 2018.
 However, what surprises most is that the set period three more years ahead. Its only two years since Zim-Asset kicked off hence, most of the projects are in progress. Unlike what Gutu has been claiming that things are gloomy in Zimbabwe, the fruits of Zim-Asset are being realized.

It is pleasing that the Cabinet has approved the Civil Service audit which was carried out by the Civil Service Commission in April this year. The main aim of the audit was to reduce the nation's wage bill. Currently, the Civil Service is bloated, hence compromising revenue that is collected monthly. As it stands, 92 percentage of the Government's revenue is channeled towards Civil Servant expenditure. This has been affecting financing of Government programmes such Zim-Asset.

Source - Chido Chikuni
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