EDITORIAL COMMENT : Zanu-PF Conference: Citizenry is waiting

13 Dec, 2019 - 00:12 0 Views
EDITORIAL COMMENT : Zanu-PF Conference: Citizenry is waiting

The ManicaPost

MANY of the citizenry is waiting with high hopes of what will come out of the ongoing Zanu-PF 18th National People’s Conference at Goromonzi High School in Mashonaland East Province.

This event should not just be a mere gathering. It should be where the ruling party meets its members and takes serious stock of what happened in the past year and strategise for the coming year.

The 2019 conference, whose theme is “Modernise, Mechanise and Grow the Economy Towards Vision 2030”, is taking place on the back of a myriad of challenges, chief among them is the country’s struggling manufacturing, agriculture and mining sectors. What is therefore needed is economic transformation. However, the change cannot happen overnight.

Most encouraging is the fact that President Emmerson Mnangagwa’s Government of the day has demonstrated goodwill and commitment to transform the economy.  

Among the sectors that can be identified as growth drivers are manufacturing, agriculture and mining. We believe the conference should seriously look at strategies around these three key sectors which have the vast potential of transforming the country’s economic fortunes and create the much needed employment.

Looking at manufacturing, the successful growth stories for other countries such as China and Singapore are attributed to their vibrant manufacturing sectors. The manufacturing sector in these countries became vibrant due to deliberate efforts made by their governments through policy interventions biased at boosting the sector. It is in the same vein that Zimbabwe’s manufacturing sector can be boosted through policy and practice changes.

By drawing lessons from such countries, it is indeed possible to make the Zimbabwe manufacturing sector an economic driver. In the same vein, Zimbabwean companies should also be innovative and be able to adapt to changing social, political and economic variables and not continue to rely on outdated business models.

Thus, the manufacturing sector can potentially play a key role in the overall economic development agenda as well as initiatives geared at employment creation and effective reduction of poverty.

The agriculture sector of Zimbabwe is regarded as the mainstay of the economy.

It is characterised by diverse investment opportunities ranging from the production of cash and strategic crops, mechanisation, horticulture and the upgrading of agricultural equipment and livestock.

There are vast investment opportunities in agriculture that have the potential to boost the sector’s viability.

Studies have shown that despite lack of support, smallholder production in A1 areas and medium-scale commercial farms in A2 areas, as well as outgrower arrangements such as those in the lowveld sugar estates, have huge potential to contribute in the transformation of the economy. Most farmers in these areas are producing surpluses and reinvesting in their farms.

Drawing on this experience, authorities need to look at a number of factors key to transforming agriculture. First, the land tenure security should be assured through issuing 99-year leases for larger land reform farms and permits for smaller farms. This should be complemented by clear regulations.

Secondly,  getting bank finance flowing is essential. Bankable leases will help, as will the acceptance of a range of forms of collateral by finance institutions. State assurances and the building of trust will be key.

Government loans for agriculture are currently offered through the Command Agriculture programme. Focusing on larger farms with irrigation infrastructure, it has shown some huge success in the past. But such programmes should not be abused, and it is essential that loans are fully repaid.

Thirdly, partnerships and joint ventures will be significant for some larger farms and certain crops, where external finance and expertise are essential. Already,, Chinese involvement in tobacco production  is proving to be important. Opening opportunities for the return of highly skilled former white farmers will be significant too.

Regulations to ensure such partnerships are truly joint and involve the transfer of skills are vital.

Mining could become another leading growth sector, though this will depend on global commodity market conditions as well as on the fiscal and industry strategies pursued by the authorities.

Zimbabwe possesses resources, especially of platinum, gold, diamonds, methane gas, asbestos, nickel, coal and chromite, sufficient to generate export earnings in the region of US$2 billion annually over the medium term and upwards of $5 billion a year within years, thereby ensuring that mining remains comfortably the country’s largest exporter.

In addition, the sector’s main contribution to growth and poverty reduction can come indirectly in the form of the construction industry during expansion periods and over the long-term through its contributions to tax revenues and, most importantly, to foreign currency earnings as output levels increase.

It is, therefore, our hope and trust that the 2019 conference will come up with positive news that will better the lives of the generality of Zimbabweans.

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