Zanu-PF has a mountain to climb in turning around the economy

Published: 12 September 2013

Newly appointed Finance minister Patrick Chinamasa yesterday admitted that the Zanu-PF-led government has a mountain to climb in turning around the fortunes of the economy as the country is still under sanctions.

Chinamasa replaced MDC-T secretary-general Tendai Biti, who was in charge of the ministry during the inclusive government.

Speaking at State House after being sworn in by President Mugabe, Chinamasa said he would fully acquaint himself on the nature of the challenges facing the economy after a briefing.

Chinamasa said Government's priority would be growing the domestic economy and increasing participation of indigenous people in mainstream economic activities.

Minister Chinamasa said this in an interview immediately after the swearing in of the new 26-member Cabinet by President Mugabe at State House yesterday.

Minister Chinamasa said that the new frontier of Zimbabwe's struggle was now the economy after the country secured political independence and sovereignty.

"Government's priority is to grow the economy and increase the participation of our indigenous people in the economy from current levels," he said.

Minister Chinamasa pointed out that Government efforts to boost economic growth come under a barrage of economic sanctions from Western countries hence the need to scout for new relations with nations of similar psyche.

"Of course, we do so (growing the economy and indigenisation) under a regime of (illegal) sanctions so we need to identify new economic friendships."

He, however, would not be drawn into commenting on other economic issues his ministry and the Government will need to work on to ensure sustainable economic growth and development.

The new Zanu-PF-led Government has its work all cut out and will need to hit the ground running in light of economic recovery growth running out of steam.

Government has projected economic growth at 4,5 percent this year on slower growth in agriculture and mining. This contrasts sharply with 7,1 percent average economic growth that characterised the period 2009 to 2011.

The single biggest constraint to sustainable and rapid economic growth in Zimbabwe has been the limited availability, access and high cost of long-term funding.

Other issues include rolling power cuts due to the shortage of power, high cost of labour and utilities, shortage of raw materials, old and inefficient equipment, poor infrastructure and competition from low-priced imports.

However, the upside potential for domestic economic growth remains immeasurable due to abundance of world sought mineral resources, excellent climate for agriculture, high literacy rate, skilled and educated workforce.

In addition, Zimbabwe's potential to grow, besides being one of the few lucrative last frontiers of growth, is limitless as it is coming from a low base after a decade of recession that decimated about half of its gross domestic product.

- herald

Tags: Zanu-PF,