Zimbabwe needs new jobs plan – World Bank

via Zim needs new jobs plan – World Bank | The Source May 7, 2014

Zimbabwe urgently needs a short-term plan for job creation and to fully implement the International Monetary Fund assisted Staff Monitored Programme to rekindle its sluggish economy, a World Bank official has said.

“Zimbabwe should complete successfully the economic programme monitored by the IMF (SMP), which includes a prudent fiscal stance, strengthening financial supervision, and progress on capturing of revenues from diamonds,” World Bank country economist Nadia Piffaretti told delegates at the Sapes conference on Tuesday.

Zimbabwe began the SMP – an informal agreement which allows the IMF to monitor the government’s economic programmes — last June but requested an extension after failing to meet the December timeline.

If successful, the programme could help Zimbabwe clear over $10 billion in external debts and give it access to new credit lines from international lenders.

Zimbabwe’s unemployment rate is estimated at over 80 percent, a problem Piffaretti said should be tackled directly through policy.

“It should … adopt a short-term Economic Stability and Job Creation programme, including predictable policies to increase domestic levels of confidence,” she said.

The World Bank this month lowered Zimbabwe’s economic growth prospects to three percent from 4,2 percent, citing  low investment levels and weaker than expected growth of the mining sector and poor global environment.