T he Zimbabwean government has projected growth of 4.5% for the economy this year, with 5.6% predicted in 2019 and 6% in 2020 on the back of scaledup agricultural financing, economic reforms and policy interventions, including more favourable export policies, according to Minister of Finance, Patrick Chinamasa. Last week the Reserve Bank of Zimbabwe (RBZ) announced that the country’s exports were “steadily increasing” which led to a 28% reduction of the trade deficit last year. RBZ governor, Dr John Mangudya, said he agreed with government authorities that this trend would be sustained over the next three years, buoyed by the $100 million facility to ease foreign exchange payments from the RBZ. He reiterated earlier comments that the road to economic recovery lay in improving exports. “The impressive strides recorded in this sector over the last two years highlight the potential it wields to reboot the country’s economic performance.” He said that export receipts had hit above $2 billion last year from $1.7 billion registered in 2016, with minerals and tobacco being the top earners. “As government we are aware that to expand this scope of growth, experts advise that the country should embark on improving policy that allows easy exportation. Ensuring the ease of doing business is also critical to maintain the upward trend of exports,” he said. Chinamasa agreed, acknowledging that the high costs of production in Zimbabwe were a major roadblock but said that government was looking at increased export incentives. “The export incentives are meant to ensure that producers reduce their cost. Our expectation is that if we give that incentive, producers would also be able to reduce their prices by as much as 10%, thereby making Zimbabwe’s products competitive on global markets,” he said. FTW readers also weighed in on this, with a Beitbridgebased trader welcoming the government’s new strategies. “Of course export revenue could also bring in muchneeded foreign currency which producers need to import materials and equipment with which to up their production,” he said. He pointed to agriculture and mining exports as the two sectors the country could leverage to fast-track export growth. “Zimbabwe has been doing better than most countries in Africa but with the ongoing international sanctions, the country lost its pride and its production capacity. But we still have the skills and the drive,” he said.
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The impressive strides recorded in this sector highlight the potential it wields to reboot the country’s economic performance. – Dr John Mangudya
