Depressed economic growth affects Zim-Asset

via Depressed economic growth affects Zim-Asset | The Herald July 29, 2015

Government has failed to meet Zim-Asset short-term targets due to depressed domestic demand and subdued international prices for major exports, Minister of Economic Planning and Investment Promotion Simon Khaya Moyo said yesterday. Speaking at the Global SMEs and Cooperative Investment Expo conference in Harare, Cde Khaya Moyo said the current job losses being experienced in the country were as a result of decline in economic growth.

“The decline in economic growth in 2014 can generally be attributed to poor investment performance, low business confidence, liquidity constraints, infrastructure and energy deficits, limited fiscal space, depressed domestic demand and subdued international prices for major exports. These challenges are responsible for the job loses currently obtaining in the country,” said Cde Khaya Moyo.

He said Zim-Asset targeted economic growth averaging 7.3 percent during the plan period (October 2013-December 2018), with the economy expected to grow by 3.4 percent in 2013 and 6.2 percent in 2014 and continue on an upward growth trajectory to 9.9 percent in 2018.

“However, the country could only manage growth rates of 3.4 percent and 3.1 percent in 2013 and 2014 respectively,” Cde Khaya Moyo said.

He said the situation was being further compounded by a public debt that currently stands at $7.94 billion that translate to 56 percent of the Gross Domestic Product, a figure considered too high by international standards.

Cde Khaya Moyo said the manufacturing sector has been on the decline with capacity utilisation decreasing from 57.2 percent in 2011 to 36 percent in 2014 mainly due to poor agricultural performance, competition from cheap imports, power shortages, dilapidated infrastructure, high cost of capital and lack of access to international finance due to sanctions.

He said Government was working on the operationalisation of the special economic zones to improve the economic situation. Cde Khaya Moyo said the Government will provide special incentives to attract investors in all sectors of the economy.

Cde Khaya Moyo said there were various investment opportunities in agro-processing, infrastructure development, energy and tourism.

COMMENTS

WORDPRESS: 6
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    ” Cde Khaya Moyo said the current job losses being experienced in the country were as a result of decline in economic growth.”

    Wow! He deserves a free PhD like Disgrace. What a stunning discovery! These Zanoids are amazing in their intellectual insight. Who else would have thought that jobs were actually linked to manufacturing, mining, farming and business?

    But then, I guess they think they can “create” jobs – in the civil service. Never mind that civil servants produce – nothing!

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    mandevu 6 years ago

    Zim Asset is only a series of meaningless words strung together to make us believe that some serious thought has gone into a strategy. But in reality nothing in the document was ever going to be achievable because the very basis for change does not exist in this country. Nobody other than our thieving partners of the eastern block have any interest in getting involved in this economy – it is such a disaster

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    maverickzw 6 years ago

    “He said Government was working on the operationalisation of the special economic zones to improve the economic situation. Cde Khaya Moyo said the Government will provide special incentives to attract investors in all sectors of the economy.”
    Were not these known as Export Processing Zones with a whole range of incentives and then subsequently consolidated into a new Government office. The more things change the more they stay the same. Nothing new here

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    Nyoni 6 years ago

    I think I need more KWV. There are more civil servants than there are workers. This regime knows who has kept them in power and its not the workers thats for sure.
    Come on workers it is about time we fight for our rights.
    Like Bob Marley said,’GET UP STAND UP STAND UP FOR YOUR RIGHTS’. We are right to do so given this pariah regime who have destroyed what we all struggled to build .

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    Borrowed polices do not work without borrowed ministers and president. If Zimbabwe had ditched ZANU PF and Mugabe and started afresh 2013 there would have been a much progressive policies that would adress the economic and social challenges in the country. Its common knowledge that the slow down of economic growth is a respond to the political risk existing in the country. The source of this risk is instability in ZANU PF as ruling party. Their instability begin and end with the aging corrupt sturborn incompetent ruthless greedy ignorant selfish murderous merciless old and sickly dictator president. Who also happen to be married to an equal greedy incompetent ruthless murderous woman. So Khaya Moyo face the truth. Avoid it will not save you or the country.

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    Tsholofelo 6 years ago

    Thought Zim-Asset was meant to deal with the economic decline!!! If the economic decline is now affecting Zim-Asset then this blueprint is just but a piece of sh…t!!! Whoever came up with it is a big fool!!!