EDITORIAL COMMENT: Keep momentum going in 2022

31 Dec, 2021 - 00:12 0 Views
EDITORIAL COMMENT: Keep momentum going in 2022 Government is moving with speed in rehabilitating the country’s road network under the Emergency Roads Rehabilitation Programme (ERRP)

The ManicaPost

AT the end of the year, it is customary to look back at the preceding 12 months as well as look forward to what the future holds.

It is easy to get caught up in what was missed, but there is no way one can look back and not think of a single happy moment, accomplishment or challenge conquered.

Just like 2020, the Year 2021 saw Covid-19 taking its toll on many facets of life. People were forced to adapt to the new normal amidst the disruption and uncertainty that the pandemic continues to bring.

Despite the difficult times brought about by the Covid-19, the economy is on a recovery trajectory; mainly boosted by higher agricultural production, improved capacity utilisation in industry, and stabilisation of prices and exchange rates.

The robust rebound was anchored on a better 2020-21 rainy season that gave birth to the mother of all agricultural seasons, boosting electricity, and water, while surging investment in public infrastructure bolstered domestic demand.

Zimbabwe had a very successful agricultural season where almost everything fell into place from the abundant rains, to availability of inputs and timely extension services.

The good agricultural season brought relief in terms of food security at household and national levels.

Agriculture is the mainstay and driver of the economy, and therefore all efforts should be directed towards supporting it; especially the implementation of the irrigation masterplan.

Agriculture plays a critical role in the economic and social development of the country, and even the political economy is skewed towards it because access to land was the key reason the sons and daughters of the soil waged a liberation war against the settler regime.

Our manufacturing sector, and even our service industry depend on it.

 

Household food and nutrition security are tied to it.

 

A lot of foreign currency can be generated from both livestock and crops.

 

Our rural communities depend on agriculture for survival, and at some point Zimbabwe was the food basket of Africa.

The Pfumvudza programme, though around for some time, gained national prominence as a panacea to galvanise the country out of hunger.

So going into 2022, the nation needs to pay enough attention to the demands of this critical sector.

 

We need to develop and support it so that it continues to contribute to the development of the country.

As we may all know, it is unviable to grow crops out of irrigation.

 

The risk is just too great.

The issues of developing irrigations have been discussed for a long time, and we should act on it in 2022 and resultantly cease to be worried to the extent that we are with climate change.

Economic growth is expected to strengthen further in 2022 as the negative impacts of Covid-19 subside, rain levels remain good, and implementation of policies outlined in the National Development Strategy (NDS1) accelerates.

Good vaccination progress will likely boost tourism, trade, transport, education, and other sectors that were negatively affected by pandemic disruptions in 2021.

Continued implementation of disinflation policies and fine-tuning of the foreign exchange auction market are expected to keep average annual inflation at two-digit level in 2022.

Modest economic recovery is projected in 2022 if effective measures are taken to stabilise foreign exchange and avoid excessive money creation.

Foreign exchange reforms, especially the weekly forex auctions, introduced in June 2020 could create price stability and create room for modest economic recovery.

Annual inflation stood at 50 percent in August 2021, down from a high of 838 percent in July 2020 following the introduction of rule-based reserve money management, a foreign exchange auction.

However, the widening gap between parallel market and official exchange rates will likely weigh heavily on price stability.

Zimbabwe also received US$961 from the International Monetary Fund (IMF) in the form of special drawing rights, half of which was used to support the local currency, while the remaining SDRs were used to support the acquisition of Covid-19 vaccines, investments in schools, hospitals and roads and other priorities.

A revolving fund was also set up to help manufacturers and mining companies buy new equipment, and to revive the horticulture industry by encouraging the cultivation of roses, macadamia nuts and blueberries.

The country also agreed to pay the farmers U$3.5 billion, half of which is due in July next year, to settle the two-decade old dispute that has soured relations with Western countries, including the US and the UK, leading to the imposition of illegal sanctions in 2003.

The sanctions have led to widespread misery.

 

They have worsened people’s access to healthcare, food, education and employment.

We have also witnessed in 2021 increased focus on devolution, an important step in the promotion of local economic development, and declaration of a national state of disaster of infrastructure, which led to the Government setting aside funds for the rehabilitation of major roads across the country.

This will lead to reduced costs of transport and increase the profit margins for farmers and companies.

 

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