Comprehensive structural reforms are required to sustain medium term growth of the economy, in terms of both macroeconomic and structural as well as sectoral policies. These reforms would be, especially designed with special focus on reducing the cost of doing business – Zimbabwe is currently among the countries with the highest cost of doing business in the region and there is need to address the cost of doing business.
Over the past few months, latent inflationary pressures are beginning to manifest with residual effects on economic growth prospects. Foreign exchange rationing, cash and liquidity challenges continue to adversely impact on the economy. These challenges have been exacerbated by the large and recurrent current account deficits, symptomatic of an economy excessively reliant on domestic absorption, fueled largely by large fiscal deficits. This has given rise to the current cash shortages in the economy.
1.2 Steady Progress on Reforms
The macro and structural reforms under implementation are anchored on the ZIM ASSET economic Blue Print as well as His Excellency’s Ten Point Plan. They form the basis of all the economy wide measures being implemented by Government. Some progress has been realized over the past 30 months in respect of implementation of economic reforms to strengthen recovery fundamentals and prepare the economy for sustained recovery and medium term growth.
The most visible progress has been in respect of:
- Stabilization of the Financial Sector (ZAMCO initiative on NPLs, Interbank Facility, Capitalisation of RBZ, Credit Reference System, etc.)
- Maintenance of the Multicurrency Regime – Price Stability
- Investment in Infrastructure (Energy & Power, Roads rehab & Irrigation Dams);
- Agricultural Production (Presidential Inputs Scheme & Command Agriculture)
- SI 64 (Statutory Instrument on Imports management)
- Progress on Special Economic Zones
- Progress on External Debt and Arrears Clearance
- Doing Business Reforms (and the Rapid Results Initiative)
- Recent announcement on identification of prospective investor for Ziscosteel.
- Support from Central Bank to improve productivity.
- Increase in production and export of mineral resources (with exception of Platinum – softer demands). 2008 Gold production – 4 tons 2017 – 26 tons.
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