Change tack on economy: Chiwenga

Source: Change tack on economy: Chiwenga –Newsday Zimbabwe

VP Constantino Chiwenga

Vice-President Constantino Chiwenga has called for a standard shift in Zimbabwe’s economic model, which he says has macroeconomic weaknesses that need revolutionary changes.

Chiwenga’s remarks were made in Victoria Falls, at the eighth edition of the CEO Africa Round Table’s (CART) annual conference that began yesterday and will end on Saturday.

The remarks were made at a time when the economy is facing triple-digit inflation as the Zimbabwe dollar continues to depreciate owing to a lack of foreign currency and market confidence.

“In order to secure our future and to prosper we need to evolve our economic model, therefore, to move forward we need nothing short of a standard shift one that inspires action of revolutionary levels. With this in mind, I am delighted to be speaking to the CEOs with the generous support of CEO Africa Round Table for us to share nuggets to take our economy forward to Vision 2030,” Chiwenga said, in a speech read by Matabeleland North Provincial Affairs and Devolution ministerRichard Moyo.

“The past decade showed how quickly industry transformation can happen when you reimagine and reengineer the business model. We need to look to mobilise technology, electric vehicles, the space industry, the e-economy and online streaming inspiration. Changing our current trajectory will require bold and imaginative action together with determination and decisive leadership.

 “We all know the problem and increasingly we agree on the direction of 2022, onwards, in time for solutions and practical action. With our NDS1 (National Development Strategy 1 economic blueprint) and Vision 2030 in mind — and the good news is that we are well within our reach. If, ladies and gentlemen, we all put together in a coordinated initiative to tackle the threats.”

He said that the government was committed to identifying the game-changing sectors to advance the economy.

According to the World Bank, the country needs 14% to 15% growth, single-digit inflation and an 8% to 9% increase in productivity, annually, to reach upper middle-income status by 2030.

However, with the continued volatility of commodity prices affecting mining exports, tightening monetary policies globally depressing financial markets and worsening regional climatic shocks, these targets are on course to be missed.

Further, the growing debt burden estimated at around US$20 billion, nearly the same size of the economy, is hampering the government’s ability to increase its infrastructure and socioeconomic spending.

This is because international lenders are not lending to the country because of the government’s poor repayment record.

CART chairperson Oswell Binha said the problem was the country’s politics which has divided the nation with next year’s general elections significantly raising political risks among business leaders.

“The economic outlook has never been more uncertain. We are faced with long-term challenges like the ESG (Environmental, Social, and Governance) with pressing issues such as climate change, reduction in crop yields, and supply chains which is endangering business and other serving communities. Some are trying to navigate their ESG processes while others have technologies to improve their processes,” Binha said.

“Amid all these uncertainties, it is paramount to convene and share insights, spotlight opportunities and stake the way forward. Sadly, the country must embrace a robust PPD (Public-Private Dialogue) option for Zimbabwe where national interest is given space for engagement. We have perennially suffered from our own brand of politics which has invented a politics that has affected all life in Zimbabwe, politics that when it catches a cold everything sneezes.”

He said people did not need to like one another to work together.

“Our politics has divided the nation and we need to make efforts as leadership to face that elephant in the living room. I believe this is backward politics. It is destructive and retrogressive,” Binha said.

“As we now inch into 2023 harmonised elections, this august gathering has started shivering because of the risks associated with market disturbances, industrial productions, disturbances, and assets destruction are getting higher by the day.”

According to the Organisation for Economic Co-operation and Development, the PPD provides a structured consultation between private and public decision-makers.

PPD provides for the identification of urgent issues, the implementation of inclusive and practical solutions, and the advancement of mutual understanding and trust among economic actors.

It is also very beneficial in transitional settings since it helps to maintain peace and stability and aids in the recovery of the economy through private sector development.

Industry and Commerce deputy minister Raj Modi said government was committed to keeping the door open for business to provide viable solutions for the economy.