Bleak outlook for Zim economy in 2014

via Bleak outlook for Zim economy in 2014 | SW Radio Africa by Tichaona Sibanda January 3, 2014

The economy in the country is not responding positively to last year’s election results, raising concerns that it’s stalling and heightening pressure on the ZANU PF government to deliver on its electoral promises.

This is according to lawyer and economic analyst Bekithemba Mhlanga who said the economic slowdown means the country may face a multitude of problems, including financial sector meltdown, increased unemployment and poverty, reduced growth and slow social development.

Mhlanga told SW Radio Africa on Friday that Zimbabwe’s economy has suffered dislocation over a period of 16 years and that it cannot be repaired over a period of 12 months unless drastic measures are taken.

With the economy spiralling downwards, people losing their jobs, and companies closing down, 2014 will likely be remembered as one of the worst years in Zimbabwe’s history.

Economists and experts warn that the potential crises in 2014 could eclipse even the 2008 turmoil that witnessed the inflation rate surging to 231 million percent, before the dollarization of the currency.

Mhlanga downplayed reports that ZANU PF’s five-year economic plan, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, will form the bedrock of its attempt to spur economic growth.

Upon its implementation, the Zim Asset policy document projects that the economic growth is expected to average 7.3 percent, while forecast growth in 2018 is 9.9 percent.

“This document is the work of fiction than anything else. It does not address the issues on the ground,” said Mhlanga amid reports production, consumption, supply chain, investment, export and import have already been badly hit by ZANU PF’s victory, which is being disputed by the opposition.

Opposition leader Simba Makoni also scoffed at claims by Patrick Chinamasa, the Finance minister that his spending plan ushers in the birth of a new economy, and the death of the old economy.

The Mavambo Kusile Dawn (MKD) leader told the Daily News newspaper that for the largest majority of Zimbabweans, life will remain as difficult in 2014, as it was in 2013; if not worse.

Makoni said in spite of all the rhetoric about the $4,1 billion 2014 national budget being “policy driven”, there were “no rational, viable, coherent policies that can guide citizens, especially players in the economy, to plan for the future with clarity and confidence.”



  • comment-avatar

    Can I also be paid as an economic so called analyst for parroting the obvious?

  • comment-avatar
    Nyoni 8 years ago

    Makoni must own up to the rotten tactics being meted out by Zanu upon the people of Zimbabwe. Keeping quiet to our plight will not help our suffering. Please expose these warped people for the whole world to see.

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    zim4u 8 years ago

    What has worked with Zanu since in power nothing and what proof do they have kuti they can change things around except bringing the country in its knees . Now we have young confused youth comparing mugabe with god what an insult also on that note this young man is so confused thus why wakwirwa nemurungu to further your education his life is a mess thus bob used cash to briing him in to be used ne zanu your up bringing is a mess thus why you don’t know what is wrong or right go and look for your roots

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    DRY WINE 8 years ago

    Imi inzwai. Mugabe is doing a Mao in Zimbabwe. He wants to die in office and if possible, try and have one of his children or relatives take over from him. We need a Deng Xiaoping to deliver the country. Simba Makoni, just like Deng, was fired and removed from govt from time to time. After the death of Mao, his vice took over and when he too died, Deng came in and only then did China start to prosper. This was not very far away. This happened in the 1985’s – 1990’s.
    Simba Makoni can deliver a vision for this country. Where have you ever seen a leader who leads a country for 34years and never ever uttered the words ” MY VISION FOR THIS COUNTRY IS…” and then proceeds to clearly announce his dreams for the nation and what those dreams will deliver to each and every citizen? But “kutuka bechirungu anogona!” If his foul language was the tactic he used during the war, this country could never have been delivered. At least at that time, we all knew the Zimbabwe we wanted, through the Voice of Zimbabwe. Now…blank. This person akapedza uyu. Vision yakee yainge iri yekurera vana vake nekuvakirwa Pagoda…and that he has achieved. You see, one always strives to achieve their vision.

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    Rukweza 8 years ago

    You voted him since 1980 why cry,it’s the will of the people kikikiki