By Ashley & Cleopatra
As we are living in the new global village characterised by the rise in global demand for industrialization, modernization, interdependency, trade liberalism and private investments, the need for sustainable development has been at the forefront of all states. The rise and development of Western Europe, Middle East, East Europa and Asia has been due to a number of factors. The rise of the so called African Lions like Ethiopia and Rwanda have given Zimbabwe a picture of how a state led developmental framework can be achieved to transform the country into a middle-income economy by 2030.
Zimbabwe has set developmental goals to achieve by year 2030 by becoming a middle-income economy through leaving no one behind. The implementation of the two Five Year National Development Strategies (2021-2030) is the benchmark of developmental agenda of Zimbabwe. This is supported by the Zimbabwe investment guidelines and some key fiscal policy measures which target economic growth in Zimbabwe.
Industrialization has been the backbone of the rapid development of all modern states so to achieve the desired United Nations Sustainable Development Goals. Zimbabwe’s industrialization path has faced a number of challenges for the past decade due to sanctions and other economic stumbling blocks. The Implementation of the National Development Strategy 1 brings about hope of resuscitating the industry through some government policies like mining policy where the government has introduced tax holidays to lure investors to invest in the country. The Presidential Input scheme in the agricultural sector cannot go unnoticed, as it is a step forward in funding agricultural investment from all levels to achieve food security, a key feature of human development.
However, in Zimbabwe the industrialization progress is hindered by electricity production which is a key feature in the process of industrialization and manufacturing. Technological gap serves as the major challenge, the ZISCO steel project has to start production especially with the implementation of the NDS1 which has brought a new steel giant in the continent in the name of Manhize Steel project. The project has to be implemented at the same time with the Kuvimba led ZISCO Steel to capitalise and seek joint partnerships with the owners of the Manhize Steel Project. This will go a long way in bringing back ZISCO Steel into life. It will allow Zimbabwe to be a continental powerhouse in steel production. This will lead to job creation as well as leading to a positive balance of payments in trade.
Investment is one of the key drivers of economic development in the 21st century. Companies have relocated to countries with conducive environments for investment where their capital and profits are safe. Respect of property rights and the implementation of the World Trade Organisation protocols like Most Favoured Nation (MFN), national treatment and safety values among other key issues have to be considered for a conducive investment environment. Zimbabwe introduced the Investment Guidelines under ZIDA Act which aims at promoting and protecting investors. The increase of Chinese and Russian investors as well as some potential investors still flocking to Zimbabwe speaks volumes to the progress being made by the Zimbabwean government. Like the Asian Tigers which became prosperous through investments, Zimbabwe is on track to become an Africa’s economic giant by embracing and implementing the NDS1, and also by supporting industry as the key driver of economic growth. The implementation has to be done through support schemes to public- private investments and private investments, fair and conducive environment supported by fair forex exchange rate to make it easier for investors to project their investments.
There has been rise in economic aid from developed countries to developing countries. This has allowed some countries to prosper by proper utilization of aid. The Asian Tiger’s growth was also based on economic aid from United States of America. This made the Asian tigers realise their potential through channeling economic aid to vulnerable sectors for development. Zimbabwe being one of the countries currently getting economic aid from countries like Russia and China as well as other countries. The engagement and re engagement drive is bearing fruits. What is needed for Zimbabwe to utilize that aid is key accountability measures supported by legal frameworks to completely deal with the misuse of aid. According to Dambisa Moyo, there has been rise in dead aid in Africa as leaders are into misappropriation of aid. The anticorruption agency have to keep their eyes open to all key leadership positions which have influence to the use of aid for sustainable growth. Development also include human development, the PVO bill may impact some beneficiaries in the communities. The government’s shift must be rational in its implementation of the bill by using a cost benefit analysis approach.
The political system of a country usually determines the economics of that country. Political will, discipline and consistent economic policies work hand in hand to economic development. In South Korea, Taiwan and Singapore, there was political will in supporting economic policies which were consistent and in line with the developmental agenda. This contributed to the economic development of these countries as noted in South Korea under Park where several labour laws were promulgated in support of the Two Five Year development plans. It allowed South Korea to grow into a major economic powerhouse in the Asian continent. Zimbabwe is on its development path fostered by political reforms implemented under the stewardship of President Emmerson Mnangagwa. The Transitional stabilization Program (TSP) followed by NDS1 all included the issue of political reforms to encourage development. The signing of performance contracts by ministers of government is a clear sign of implementing the desire for political will. There is need to then implement consistent economic policies supported by political will especially by combating corruption. Zimbabwe can be a breadbasket of Africa if all projects are implemented with political will and in a consistent manner.
One can therefore note that Zimbabwe has the potential to develop using its God given natural resources, the labour market is available. Consistency is key to development, as the implementation of the two Five Year NDS strategies showing the consistency part in implementation.
Since the Lancaster House Agreement, the issue of land has been at the centre stage of Zimbabwe’s policy and the government has signed Bilateral Investment Promotion and Protection agreements in order to compensate former farmers which were affected by the land reform program. In carrying this exercise, the government of Zimbabwe have to consider proper developments and utilisation of land to the beneficiaries of land reform. This can address the food shortages in Zimbabwe through production and full utilization of the land. Banks like AFC bank formerly known as Agricultural Bank (Agri bank) have to be more involved in scientific research and funding to the farmers in this climate change era. Zimbabwe has been affected by climate change hence the need for innovative ideas to support the climate proof pfumvudza intwasa program. Budget allocation to the agriculture sector has to speak to the demands of a farmer so as to promote his or her work through proper funding and market availability by gaining profits.
In conclusion, the government of Zimbabwe has to increase funding to key economic sectors and also implement economic policies in a consistency manner so to gain investor confident. Modernization and digitalization has to be through collaborative engagements with all progressive partners of development from the community level up to the state institutions level. The challenges facing Zimbabwe today, if addressed can make Zimbabwe one of the greatest markets and productive place in the continent thereby improving the country’s Gross Domestic Product through a positive balance of payments in trade.
This paper is an opinion piece written by By Ashley Mhlanga. A holder of a B.Sc. Hons degree in International Relations and is currently studying MSc. International Trade and Diplomacy at the University of Zimbabwe. She can be contacted via her email ashleymhlanga97@gmail.com
