Manicaland on course to attain NDS1 targets

09 Feb, 2024 - 00:02 0 Views
Manicaland on course to attain NDS1 targets Minister Mugadza

The ManicaPost

 

Cletus Mushanawani
News Editor

MANICALAND is on course to attain the National Development Strategy (NDS1)’s target of a Gross Domestic Product per capita of US$3 200 by Year 2025 after it recorded a per capita GDP of US$1 522 in 2022.

The provincial per capita GDP has been on a steady increase from US$1 191 in 2019 to US$1 522 in 2022.

 

In 2020, the provincial per capita GDP was US$1 226 and in 2021 it was US$1 731 respectively.

The measurement of provincial GDP is based on the production approach which estimates GDP by industry.

 

The provincial GDP estimates thus follow the principle of residence which states that production is accounted for in the province where producing units are resident.

GDP is a measure of economic activity as it measures production activities that occurred in the economy, that is, production of goods and services.

 

In simple terms, the value added generated by production activities represents GDP.

According to the statistics availed by Zimbabwe National Statistical Agency (Zimstat) last week, Manicaland provincial GDP increased from ZWL$17. 98 billion in 2020 to ZWL$21. 79 billion in 2022, showing that the economy recovered from the Covid-19 pandemic.

The province’s main economic drivers are mining, agriculture, wholesale and retail, manufacturing and finance and insurance.

The 2022 value added for Manicaland Province was estimated at ZWL$1024.18 billion, with agriculture accounting for ZWL$142.66 billion, while wholesaling and retailing accounted for ZWL$140.27 billion.

The value added for finance was ZWL$60.13 billion, real estate was ZWL$39.3 billion, construction was ZWL$37.61 billion, information was ZWL$32.29 billion, administration was ZWL$30.13b billion, transport was ZWL$29.72 billion and accommodation was ZWL$24.87 billion.

The value added for manufacturing and mining amounted to ZWL$241.60 billion and ZWL$165.71 billion respectively.

In mining, Manicaland has vibrant mining activities, with minerals such as diamond and gold being the major minerals extracted, coupled with production of quarry stones and phosphates, while in agriculture, the province boasts of commercial agriculture area for Irish potatoes, horticulture produce, (tomatoes, bananas, citrus, apples, avocados, mangoes, pineapples), macadamia nuts, cotton, coffee and tea production, timber, and dairy and beef.

The mining industry generated 14.6 percent of the provincial GDP. This was driven by extraction activities in Buhera, Chiadzwa, Penhalonga and Nyanga.

Agriculture had the highest contribution of 19.9 percent owing to vibrant forestry and horticultural activities in Chimanimani, Chipinge, Honde Valley and Nyanga.

The province also has a thriving trade industry owing to its proximity to international borders and the Sea Port of Beira, growing agriculture sector and its vast population in towns like Mutare, Rusape, Chipinge and Nyanga.

The wholesale and retail industry accounted for 18.8 percent of the provincial GDP.

Manufacturing of ethanol, milk processing, tea manufacturing, brick moulding, beverage manufacturing, furniture, timber, edible oils and detergents, food and beverages also contribute significantly to the provincial GDP.

 

This sector contributed 10.5 percent of the GDP.

 

Major activities include them manufacturing of food, timber, oxygen and beverages.

Manicaland also has a growing finance and insurance supporting business and other socio-economic activities .

Minister of State for Manicaland Provincial Affairs and Devolution, Advocate Misheck Mugadza said the Year 2024 will see the province shining and being among the biggest contributors to the national and provincial Gross Domestic Products.

“The Year 2024 is our year to shine as Manicaland. Let us leverage on our God-given natural resources to boost our economy. We want to be up there in terms of our contribution to the Gross Domestic Product (GDP).

“Let us join hands and work together for the betterment of our lives. Yes, we have the El-Nino weather phenomenon in our midst, but no one will face starvation. We will work round the clock to ensure that everyone has food on the table. As President Mnangagwa always say, we are the servants of the people, and we will surely deliver. I assure you of life-changing projects this year, and there is no relenting in our quest of making Zimbabwe an economic giant,” said Minister Mugadza.

Manicaland provincial economist, Mr Munyaradzi Rubaya said they will continue working hard to ensure that the provincial economy continues ticking.

He said they will be working closely with the tourism sector so that it also contributes significantly to the provincial GDP.

Although Manicaland has some of the best tourism facilities in the country, the sector is not contributing much towards the provincial GDP, something that is a cause for concern.

“We are worried about the performance of the tourism sector in the province. This sector did not significantly contribute to the provincial GDP. We have some of the best tourism sites and facilities and we expect the tourism sector to be one of our major GDP drivers.

“Players in this sector need to work extra hard to ensure that we get value from it. There is a lot of potential in this sector and we are positive that growth will be realised soon,” said Mr Rubaya.

 

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