Structural reforms crucial for turnaround

Structural reforms crucial for turnaround
Published: 23 April 2019 (130 Views)
ZIMBABWE's economy has for long been dogged by multiple man-created obstacles, confining it in the abyss it has been struggling to get out of for decades.

Once these obstacles are removed economic growth is realised through liberalising labour as well as product and service markets, developments that spur job creation and productivity.

Currently, unemployment is over 80 percent although government's official statistics put it at much lower than that.

The new dispensation led by President Emmerson Mnangagwa has claimed "Zimbabwe is open for business" but the fundamental conditions on the ground have not changed much from the repulsive ones that obtained during the reign of his predecessor — former president Robert Mugabe.

The ease of doing business, we are told has improved significantly but more needs to be done to attract foreign direct investment.

Besides, corruption has cost the economy dearly over the years and has almost become institutionalised.

So many cases that have been put into the public domain still have not found closure, denting the verve that Mnangagwa's anti-graft crusade seemed to reflect when he took over the reins from Mugabe.

Finance minister Mthuli Ncube last year introduced austerity measures that were expected to, among other things, cut government expenditure.

However, on the one hand, the austerity seems not to be shared as the elites seems to be living large while ordinary citizens continue to survive on the periphery of economic activity, enduring abject poverty.

On the other hand, efforts to generate revenue for government through, for instance the two percent transactional tax, have increased the appetite to spend for government, whose penchant for profligacy is well-documented.

The country is rich in mineral wealth with diamonds, gold and platinum among the top earners in that sector.

However, some of the mineral produce finds its way out through the country's porous borders as producers try to earn the elusive United States dollar.

Tobacco farmers recently withdrew their crop from the auction floors following disagreements over payment methods. Golden leaf farmers expected payment for their crop in US dollars, a currency that would ensure they would preserve value.

This would allow them to pay for inputs for forthcoming seasons as well as pay their employees back at the farms.

If the farmers are not incentivised, chances are they may not be able to produce next season, dealing a deadly blow to one of the country's chief foreign currency earners.



- Daily News

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Zimbabwe govt expenditure problem

by Clemen Moyo ka Mangena | 15 September 2019 | 136 Views

Sympathy for the devil

by Zimbabwe Vigil Diary | 15 September 2019 | 148 Views

ZINARA Employees stealing from government and motorists

by Munya Shumba | 15 September 2019 | 169 Views

ZAPU in its bravest rebranding and transformation exercise

by Sakhile Sibanda | 15 September 2019 | 118 Views

Mugabe's death breathes life into sleepy Zvimba

by Staff reporter | 15 September 2019 | 249 Views

Zimbabwe's success inevitable, says Mnangagwa

by Staff reporter | 15 September 2019 | 252 Views

Mugabe died a sad man

by newzimbabwe | 15 September 2019 | 299 Views

Zinara looters put on notice

by Staff reporter | 15 September 2019 | 278 Views

Ramaphosa apologises for xenophobia

by Staff reporter | 15 September 2019 | 199 Views

Mugabe funeral programme shifts to Zvimba

by Staff reporter | 15 September 2019 | 308 Views

Zimbabwe nears SA industry loans deal

by Staff reporter | 15 September 2019 | 189 Views

Crafty Bob is not just history but our history

by Bishop Lazi | 15 September 2019 | 145 Views

G40's ahistorical narrative

by Ranga Mataire | 15 September 2019 | 192 Views

A too-comfortable end for Mugabe

by Jason L Riley | 15 September 2019 | 215 Views

Mnangagwa may not revenge against Grace Mugabe

by newzimbabwe | 15 September 2019 | 204 Views

Final salute for Robert Mugabe

by Staff reporter | 15 September 2019 | 159 Views

'The West is upset about Zimbabwean land'

by Prof Arthur Mutambara | 15 September 2019 | 180 Views

South Africans need a history lesson

by Mtandazo Dube | 15 September 2019 | 162 Views

'Foreigners can now invest in Zimbabwe's restricted sectors'

by Staff reporter | 15 September 2019 | 188 Views

Grace Mugabe praised

by Staff reporter | 15 September 2019 | 231 Views

Zesa, BCC agree on compensation for power station use

by Staff reporter | 15 September 2019 | 148 Views

The 'Zimbabwean' mogul in SA police's crosshairs

by Staff reporter | 15 September 2019 | 195 Views

Can Bosso stand Colliery heat?

by Staff reporter | 15 September 2019 | 88 Views

ZB Bank introduces WhatsApp banking

by Staff reporter | 15 September 2019 | 101 Views

Sables beat Zambia, win Victoria Cup

by Staff reporter | 15 September 2019 | 70 Views

College charges extra on EcoCash

by Staff reporter | 15 September 2019 | 47 Views

Concern over sharp increase in armed robbery cases

by Staff reportetr | 15 September 2019 | 49 Views

'18 people living in one room'

by Staff reporter | 15 September 2019 | 84 Views

Zimbabwe stuck with expired medical drugs, says committee

by Staff reporter | 15 September 2019 | 52 Views

Mugabe: The socio-genesis, posterity of Pan-Africanism

by Richard Runyararo Mahomva | 15 September 2019 | 120 Views

Bulawayo City Council workers demand housing stands

by Staff reporter | 15 September 2019 | 42 Views

The installation of the Lozwi King at Emawabeni

by Pathisa Nyathi | 15 September 2019 | 146 Views

Graca Machel: Appreciate Mugabe's role in Zimbabwe

by Staff reporter | 15 September 2019 | 45 Views

Gukurahundi victims react to Mugabe death

by Staff reporter | 15 September 2019 | 55 Views

The other side of Mugabe

by Nqaba Matshazi | 15 September 2019 | 116 Views