Zimbabwe too broke to implement economic plan

via ‘Zim broke to implement economic plan’ – DailyNews Live by Ndakaziva Majaka  14 MAY 2014

Zimbabwe has no funds to implement its five-year economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset), Industry minister Mike Bimha has said.

He said the private sector should help finance projects under the plan, expected to guide Zimbabwe’s economic plans and objectives until 2018.

Bimha said government was facing a policy implementation crisis and needs a financial bailout for ZimAsset.

“Government has spent time and resources planning the ZimAsset, but will not be able to implement this scheme on its own,” he said at a Zimbabwe National Chamber of Commerce (ZNCC) function last week.

“This policy will help industry the most so it is only prudent for industry to assist in every possible way, preferably financial,” Bimha added.

He said if private players did not chip in, ZimAsset would amount to nothing as government “has too much on its plate as it is.”

“The country has got policies that fall short in the implementation department.  I am appealing to the private sector to help government in the implementation of these policies to speed up economic development,” he said.

Under ZimAsset — requiring at least $10 billion to implement — Zimbabwe targets to create 2,2 million jobs, unlock $1,8 trillion in idle mineral reserves and grow the economy by an average seven percent annually.

The blue-print comes on the back of a string of others that include the Economic Structural Adjustment Programme, Zimbabwe Programme for Economic and Social Transformation and the abandoned Medium Term Plan that was supposed to run until 2015.

Bimha also said the country needed to formulate credible policy proposals that address issues like strengthening fiscal management, reducing financial sector vulnerability and improving the business climate to attract investment and enhance competitiveness.

Recently, Dutch ambassador to Zimbabwe Gera Sneller said the Netherlands would not advance Zimbabwe funds to finance its economic plans under the blueprint.

She suggested that Zimbabwe partners private investors rather than seek rescue packages from governments.

“I have to say that I feel Zimbabwe is at a stage where the most important thing is to work with private investors not ask for aid from individual countries… it really should not be about aid,” Sneller said.

“If government follows what is being stated… to improve the business climate, investment will come,” the envoy said.

She said Zimbabwe was a risky destination to invest at the moment.

Sneller said Dutch investors were ready to come into the country provided government clarifies policies that protect investor interests.

“Investors should have assurance that the same laws valid today will be valid tomorrow and that the same conditions should be applicable across sectors,” she said.

The investment-starved country is desperately trying to attract foreign direct investment (FDI) and access international lines of credit.

Investors and financiers however are wary of its policies, particularly the indigenisation law — compelling foreigners to cede majority shareholding to black locals.

 

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28 comments on “Zimbabwe too broke to implement economic plan
  1. Roving Ambassador says:

    Oohh ZANU is admitting its clueless on solving the economic crisis it created. And now business must clean up.
    What a joke.
    You grab money through Gono from business then ask them to pump in more.
    Who is the idiot?
    Mugabe and your crew, just walk out and yes we will sort your mess up.

  2. dennis chikuve says:

    What is it with Zanu PF? Always looking for handouts? How can you expect the same private sector that you so blatantly and systematically destroy provide a rescue package? ZIMRA is busy garnishing businesses forcing them to flee and hide their profits? Zanu PF has over 34 years turned everyone into a mini-criminal and enemies of the state? You made your bed comrades, lie on it. As for minister Bimha, come up with some creative ways of raising capital from the loot that your colleagues have accumulated and stop re-cycling old useless ideas. We are tired of your ineptitude and lack of strategic thinking. The Diaspora is not willing to invest in a country full of kleptomaniacs and incompetent leaders. They are best advised to keep their money close to their chests until there is an emergence of new competent and honest leaders.

  3. Charles Chamunorwa says:

    Where is the private sector you are talking about Minister. Go to Workington and see if there is any private sector to talk about.

    • furedi says:

      The furthest these ministers travel in Harare is to Shake Shake building. They will never travel further south, so they don’t know that in Workington, Southerton, Ardbennie,Willowvale and Graniteside a great number of Industrial properties are now just empty shells.I have going through properties for sale sites for Harare there are too many Industrial properties for sale.Some of the buildings still have the ex- company name on these factories etc, but we all know kuti Hamuna chirimo muzimba racho.

    • Saddened says:

      Quite right what’s left of the private sector is in intensive care. I suggest they speak with the informal sector that Chinamasa has been on about for a while! These clowns are certainly clueless. They have been full of bluster for years but now the ‘goose’ is almost dead so suck it up.

  4. Methinks says:

    For the economic recovery that the minister dreams about, there must be a total root, stem and branch clean up of the whole edifice that zimbabwe has become. To think that investors should just forget about or be unconcerned about the corruption, lawlessness, disregard of property rights, indigenisation laws etc and just bring their money regardless is wishful thinking.

  5. Mlimo says:

    To those investors who do so now maybe you should realise that a new govt will not necessarily keep zanupf promises. Particularly If made by one of the stooges who has lined his or her pockets .

  6. moomoo says:

    invest in other aftican countries with Mugabe and his crooks in charrge you will only be robbed legaly in their. eyes

  7. Zen says:

    Let me get this straight. These guys dreamt up Zimasset with no money and no idea where the money would come from??? What imbeciles!!!! Ha ha ha

    • Jan says:

      they thought they could fool the world into legitimising that cabal of theives and murderers that stole the election.stealing an election is easy, zanupf has proved that time and again. they thought they could fix the economy by confiscating the farms and insiting that business owner hand over 51% of their business. Guess what, it did not resuscitate the economy. It killed the economy. the people of Zimbabwe have ideas on how to resuscitate the economy, but we will not do so because kusukwere willinsist we hand over 51 %. Uhuh, we shall sit it out and watch zanupf kill themselves.

  8. Chaka says:

    Zpf accepts it has no clue. Sneller’s advice is that we should not borrow, but zpf is excited abt 10billion frm China n India. A big mistake. Any party that takes over can sort this out.

  9. Wilbert Mukori says:

    “Government has spent time and resources planning the ZimAsset, but will not be able to implement this scheme on its own,” said Industry minister Mike Bimha at a Zimbabwe National Chamber of Commerce (ZNCC) function last week.

    “This policy will help industry the most so it is only prudent for industry to assist in every possible way, preferably financial.”

    The USA Ambassador to Zimbabwe told the Mugabe regime it needed to restore investor confidence to attract the much needed Foreign Direct Investment. The Australia Ambassador to Zimbabwe compared investing in Zimbabwe at present with swimming in crocodile infested Zambezi River. Of course no investor in their right mind would want to do that. Why should they when there are other rivers, swimming pools and white sand beaches galore where they can swim in perfect safety.

    The only way to restore investor confidence is for the Zimbabwe government to re-turn to rule of law and what better way of doing that than by ending this Mugabe illegitimate rule. By rigging the elections Mugabe showed he has no respect of the law and cannot therefore be trusted.

    All the regime’s efforts to assure investors that it will not seize their property and in-vestments in the future have fallen on deaf ears because a regime that will blatantly rig elections and thus commit treason against the nation cannot be trusted to honour its promise or treats to protect the property rights of foreigners, especial when the regime has violated the same rights and treats in the past.

    The position as regards attracting would-be investors in concerned could not be clearly they are not investing in Zimbabwe whist the Zanu PF crocodiles remains in office. This puts Mugabe and his cronies in a real conundrum in that whilst they would like investors to invest in Zimbabwe they demand for the regime to give up is something simply unthinkable for Mugabe. He has just spent billions of dollars rigging the elections and to then give it all up is simply asking too much!

    Mugabe will give up anything just to see some money paid into that mockingly empty ZimAsset anything except give up power. Nothing will assure the foreign investors that Zimbabwe is a law abiding nation short of seeing free and fair elections held in Zimbabwe. And so there lies the two irreconcilable political realities in Zimbabwe today.

    Whilst the would-be investors can bide their time and wait till there are no crocodiles in the Zimbabwe economy Mugabe and Zanu PF do not have time to waste because every day that goes by the Zimbabwe economy sinks deeper and deeper into the abyss. And the deeper the economy sinks the nearer it will get to its tipping point where the people will finally be forced to take matters into their own hands and force the regime out of office.

    There has to be limit to how much suffering the people of Zimbabwe will tolerate be-fore they say enough is enough and finally kick Mugabe and his cronies out of office. The economic melt-down will continue be it an ever accelerating pace until that tip-off point is reached. It is unlikely Mugabe will ever give up power however self-evident the economic melt-down becomes; it is not in the DNA of a tyrant to give up power, he will have to be forced.

    • furedi says:

      We the people can see and we know that the country is in trouble, but Bob and his goons don’t see that.The only time they will admit that times are now hard is when there is no food on the president’s table.So when is that ever going to happen.

  10. John Thomas says:

    Stick your ZimAsset up your Bihma. This is where it belongs

  11. RR says:

    Which part of the private sector. Formal or informal?. The formal sector has been decimated over 30 years by high taxation, aggressive labour laws, poor government policies and corruption. Will the informal sector heed the ‘give me something for nothing’ call. Very unlikely.

  12. Mahlaba says:

    Zimbabwe credit record is appalling, who is going to throw his money kleptomaniacs?

  13. zim reeper says:

    Scientests are needed to examine mugabe and zanupf non thinking brain.

  14. RR says:

    Mike Bimha just another ZPF thug.

  15. Jrr56 says:

    He said the private sector should help finance projects under the plan, expected to guide Zimbabwe’s economic plans and objectives until 2018.
    Is that before you steal 51% or after? Oh no you won’t take it, Oh yes you will? Ummm invest first and we will see if you qualify for indigenisation. Ummm no we will now only steal from White Zimbabweans, the ones who created the economy in the first place. No the laws wont change – Trust us!!!

  16. NBS says:

    Yes! We are the tail and not the head. We are the borrower and not the lender. A sure sign of God’s displeasure. For a Christian nation we sure are spiritually blind and lack any wisdom. Wake up church!

  17. makotsi says:

    Zimbabwe needs citizens who are positive and ready to work for it. We don’t have any other place we shall call home hence the need for a united people to chart our own destiny as a people together. We shall overcome all obstacles affecting our economy and shame false prophets Amen.

  18. furedi says:

    Tell Mliswa to hand back the company he stole. That would be a good start.

  19. Petal says:

    Can the minister Mike Bimha tell us where BOB is getting the money to back to SINGAPORE just to get eyes treated and why money has been SPLASHED OUT ON CARS FOR MPS – surely in a time when the economic climate is not conducive while your Minister of Finance is putting his hand out to BEG and at the SAME TIME the MONEY LOANED Is not being paid BACK – it IS NOT ROCKET SCIENCE

  20. John says:

    You do not ask private sector for help after a policy has been drawn up. You talk to the private sector before hand. You take a consultative approach and engage the said investors in advance. There is a lot of private money, most of it outside Zimbabwe but it won’t come for free. Clean up the government first and then you can start to talk of investment..

  21. Straight Shooter says:

    You are appealing to the private sector to help government implement its policies. How do you expect them to help implement policies they do not agree with; eg the indigenisation policy? Forget it.

    Besides you will never have the money as long as all the money meant for development goes to the gukurahundi family for regular uncontrolled trips to Singapore for medical check ups – not to say much about the usaul shopping; when the country has its own medical facilities that you as a government are supposed to develop!

  22. Straight Shooter says:

    What do the Rating Agencies say about this appalling gukurahundi economy? Unparalled in history!!

  23. Sav101 says:

    Chops

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