Samuel Kadungure
Senior Reporter
MANICALAND needs to lure Foreign Direct Investment to ramp up production in economic sectors where it has comparative advantage in order to grow its Gross Domestic Product (GDP) as it is among the least performers, The Manica Post Business has established.
During his recent visit to Manicaland, President Mnangagwa challenged the province to work assiduously to improve its GDP.
Data presented at a developmental indaba last weekend by the Reserve Bank of Zimbabwe director (economic research), Mr John Mafararikwa, shows that the national GDP stands at US$24,15 billion.
These are the latest figures from 2018 as the 2019 and 2020 data is still being worked on.
The provincial GDP is as follows —Harare, US$9,56 billion (40 percent); Bulawayo, US$2,26 billion (nine percent); Mashonaland East, US$2,22 billion (nine percent); Mashonaland West, US$2,14 billion (nine percent); Midlands, US$1,94 billion (eight percent), Manicaland, US$1,46 billion (six percent); Masvingo, US$1,41 billion (six percent); Matabeleland North, US$1.16 billion (five percent); Mashonaland Central, US$1,08 billion (four percent) and Matabeleland South, US$0.94 billion (four percent).
On GDP per capita per province, the performance turns out as follows – Harare (US$3 614), Bulawayo (US$3 048), Mashonaland East (US$1 408), Matabeleland North (US$ 1 333), Mashonaland West (US$1 206), Matabeleland South (US$1 186), Midlands (US$1 026), Masvingo (US$820), Mashonaland Central (US$784) and Manicaland (US$743).
GDP is the final value of goods and services produced within the geographic boundaries of a given area during a year, and is widely viewed as a key indicator of its economic performance.
Per capita GDP is a metric that breaks down an area’s economic output per person. It’s calculated by dividing the area’s GDP by its population to show how much economic production value can be attributed to each individual citizen.
This gives a good representation of the area’s standard of living and how much citizens benefit from the local economy.
The data has triggered intense debate on why Manicaland is at the bottom of the pile when it is endowed with an assortment of minerals, timber and tea estates, tourism facilities, as well as adequate water for agriculture, among other natural resources.
“Productivity is a key driver of economic growth. Manicaland should ramp up production and value addition in the mining and agricultural sectors. The province also has a comparative advantage in the tourism sector.
“The province needs to promote value addition activities, especially in manufacturing and packaging,” said Mr Mafararikwa.
He emphasised on the need to attract FDI to ensure that the cutting and polishing of diamonds is done in the province.
Mr Mafararikwa also said community share ownership trusts have the potential to spur development, adding that legislators and local authorities need to properly account for constituency development and devolution funds respectively.
Zanu PF national secretary for finance as well as acting political commissar, Cde Patrick Chinamasa said Manicaland should stop selling raw products.
“We are concerned as we are at the tail of the development trajectory in Zimbabwe.
“This has triggered in us a desire to do things that will lift us from the bottom to at least somewhere in the middle,” said Cde Chinamasa.
He said all districts across the province should convene development caucuses to establish areas where they have comparative advantages.
“Each district must identify its resource base and opportunities and take measures to lure investors to exploit those assets so that we raise our GDP.
“Manicaland is the only source of timber for the country, whether for furniture or construction, yet we are not adding any value to it. It goes all over the country in its raw form. These are the issues that we have to attend to.
“Similarly, we have diamonds; we need to know where the value addition is taking place. If the cutting and polishing is taking place in Harare, it means we are helping Harare grow its GDP at our own expense. We produce phosphate minerals, which are used to make fertilisers.
“The phosphate is not being processed in Buhera, again we are helping Harare grow its GDP.
“These are some of the issues we are looking into and I am sure we will find the answers soon. We should create conditions conducive for investors to invest in Manicaland. We should go out of our way to offer incentives that will make us an investment destination of choice,” said Cde Chinamasa.
He added that a development-oriented technical team should be put in place to identify investors for the opportunities in the province.
Businessman, Mr Basil Nyabadza said there are plans to establish a multi-million dollar milling facility in Rusape.
“We need to find solutions that extricate Manicaland from the bottom of the pile. Makoni produces 70 percent of Manicaland’s grain and we have already identified land to set up a milling facility to process maize-meal and stock feed. This will help in terms of value addition. We will also expand to horticulture.
“Politics need to be complimented by businesses to uplift the people’s living standards.
“In the past, the political thrust was not taking into account business expectations. Fortunately this has changed as business people are now being consulted,” noted Mr Nyabadza.