Elections 'may dampen growth outlook'

Elections 'may dampen growth outlook'
Published: 05 January 2012 (1344 Views)
Harare - Projected economic growth in 2012 depends on a stable political environment which could be undermined if a contentious general election takes place, the African Development Bank (AfDB) said in a monthly review released on Thursday.

Finance Minister Tendai Biti expects the economy to expand by a further 9.4% in 2012 from a forecast 9.3% last year, mainly on the back of a rebound in agriculture and mining. Inflation is projected to average 5% this year.

The southern African country has been on a recovery path since 2009 when long-time ruler President Robert Mugabe agreed to share power with his rival, Prime Minister Morgan Tsvangirai, after disputed 2008 polls and in a bid to reverse a decade-long economic slump.

The AfDB said while international commodity prices would be key to Zimbabwe's economic growth prospects, internal policy decisions, such as Mugabe's drive to give control of foreign owned firms to locals, could hurt the economy.

"The on-going implementation of the indigenisation and economic empowerment laws and the expected national elections in 2012 continue to weaken external investor confidence," the AfDB said in its review of Zimbabwe's economy.

"The achievement of the 2012 projections is therefore subject to a stable political and economic environment ... and continued firming of the international commodity prices or increase in output."

New constitution

Analysts say the empowerment laws, mainly targeting foreign-owned mines and banks, are holding back investment into the country and restraining economic growth.

Mugabe has however vowed to press on with the policy, which he argues is necessary to address imbalances created by colonialism. Critics have dismissed the policy as a political ploy to harness support ahead of elections.

The veteran ruler, in power since independence from Britain in 1980, wants elections this year to end a fragile three-year power-sharing government he has frequently described as dysfunctional.

However, Tsvangirai and regional leaders who brokered the power-sharing deal insist fresh elections can only be held after the adoption of a new constitution as well as broad electoral and media reforms.

A referendum on a proposed new constitution is expected sometime this year after a long-drawn-out process of drafting the charter which has suffered countless delays due to lack of funding and constant wrangling between the coalition partners.


- Reuters

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Government speaks on Auxilia Mnangagwa - Army fallout

by Mandla Ndlovu | 21 July 2019 | 52 Views

Chinamasa's world up in flames

by Mandla Ndlovu | 21 July 2019 | 48 Views

Teachers to shutdown schools on Monday

by Mandla Ndlovu | 21 July 2019 | 41 Views

Zimbabwe govt licenses companies for riverbank mining

by Staff Reporter | 21 July 2019 | 58 Views

ZCTU proceeds with demo preps

by newzimbabwe | 21 July 2019 | 91 Views

Mnangagwa pledges support for women's projects

by Staff reporter | 21 July 2019 | 56 Views

Mthuli Ncube needs to work his magic on inflation

by Staff reporter | 21 July 2019 | 60 Views

'The electorate believes in Zanu-PF'

by STaff reporter | 21 July 2019 | 61 Views

Mnangagwa gets Sadc boost

by Staff reporter | 21 July 2019 | 57 Views

Power shortage hits mobile phone services

by Staff reporter | 21 July 2019 | 31 Views

City fathers or city dealers at council chambers?

by Limukani Ncube | 21 July 2019 | 56 Views

Bulawayo residents call for dissolution of council

by Staff reporter | 21 July 2019 | 50 Views

Nust bursar suspended

by Staff reportet | 21 July 2019 | 45 Views

Mid-air scare for fastjet passengers

by Staff reporter | 21 July 2019 | 44 Views

Exploring the causes of Gukurahundi

by Dr Obert Mpofu | 21 July 2019 | 73 Views

Lobels shut down Bulawayo plant again

by Staff reporter | 21 July 2019 | 57 Views

Harare demands 30-year-old debt from Zesa

by Staff reporter | 21 July 2019 | 46 Views

Kalanga lobby group to produce textbooks

by Staff reporter | 21 July 2019 | 49 Views

Govt moves to tackle gold leakages

by Staff reporter | 21 July 2019 | 45 Views

Mthuli Ncube to rescue closed mines

by Staff reporter | 21 July 2019 | 56 Views

Zimbabwe reels as 18-hr power cuts

by Staff rpeorter | 21 July 2019 | 87 Views

Kirsty Coventry denies interference

by AFP | 21 July 2019 | 38 Views

Zimbabwe removes barriers to solar energy expansion

by Thompson Reuters Foundation | 21 July 2019 | 74 Views

Zimbabwe food crisis an emergency, says UN

by VOA/ UN News | 21 July 2019 | 38 Views

Can Bosso's Prince rise again?

by Staff reporter | 21 July 2019 | 28 Views

CIO operative harasses journalists

by Staff reporter | 21 July 2019 | 23 Views

Save Bulawayo from vultures

by Staff reporter | 21 July 2019 | 40 Views

The pig in Mthuli Ncube's bacon

by Zifiso Masiye | 21 July 2019 | 61 Views

Mnangagwa ally faces probe in $3bn scandal

by Staff reporter | 21 July 2019 | 34 Views

Power outage cripples Econet services

by Staff reporter | 21 July 2019 | 35 Views

Lobengula descendants demand State House

by Staff reporter | 21 July 2019 | 31 Views

Zanu-PF vote-buying scandal raises alarm

by Staff reporter | 21 July 2019 | 39 Views

Chamisa to address high-profile rallies in Lupane East

by Staff reporter | 21 July 2019 | 22 Views

Mugabe coup announcer will not divorce his wife

by newzimbabwe | 21 July 2019 | 26 Views

Donald Trump says 'looking into Zimbabwe right now'

by ZimLive | 21 July 2019 | 36 Views

Mnangagwa exposes General Chiwenga

by Mandla Ndlovu | 21 July 2019 | 37 Views

Ramaphosa 'victim' to solve ZESA crisis

by Mandla Ndlovu | 21 July 2019 | 32 Views