ECONOMIC Planning and Investment Promotion minister Tapiwa Mashakada said government needs to stop blaming other countries for its own problems and start working on reforms that are essential for the growth of this country.
Speaking at the 2011 KM Financial Services CEO round table last week held under the theme “Towards a US$100 billion economy by 2030,” Mashakada said a review of Zimbabwe’s growth model was equally important to move on such a high growth path.
“We need to avoid short term populist policies which are detrimental to the long term growth of the country,” Mashakada said.
Mashakada said Zimbabwe needs to fully utilise its natural resources for the development of the country.
“We need to stop blaming others for our own problems and start working on reforms that are essential for the growth of this country. We need to manage rent seeking behaviour in the key sectors of our economy,” he said.
Attaining US$100 billion by 2030 implies that Zimbabwe will record an average growth rate of 14,2% for the next 19 years.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
“To achieve this serious transformation of the economy, we need a shared vision and values,” Mashakada said.
Zimbabwe’s nominal GDP is projected at US$8 billion for 2011 and average growth of 9,3%.
“In terms of electricity to support this growth we need to move from the current, 1 250 Mega Watts to 15 485 Mega Watts.
“There is need for increased commitment from all stakeholders, Private sector, Labour and government for the country to realise such growth rates,” Mashakada said.
Mashakada said government’s thrust was to learn from the working models of development to ensure that it achieves the set targets.
“It is interesting to note that China displaced Japan as the second largest economy in 2010, after years of robust growth averaging 10% over the last decade,” he said.
Japan had held the number two spot after the USA since 1968 when it overtook the then West Germany.
“Some experts are actually predicting that China will overtake the USA by 2030,” he said.
He said governance reforms were equally important to ensure that Zimbabwe fully realise potential.
“It is imperative that Zimbabwe should address country risk, corruption, enforce rule of law, contracts, and safeguard property rights if the economy is to join the elite clubs.”
“Improving the investment climate will be critical for the country to achieve sustainable growth and development,” Mashakada said.
According to the 2011 index of Economic freedom, which looked at variables like, business freedom, financial freedom, fiscal freedom, property rights, government spending, corruption, monetary freedom, trade freedom and investment freedom. Zimbabwe was ranked second least free economy out of 179 countries.
“In terms of ranking within Sub Saharan Africa Zimbabwe was ranked last out of 46 countries. These statistics show you the magnitude of work on our hands to transform this country. These variables are domestic factors which we can address as a country, without requiring a lot of resources,” he said.
Projected growth rates (2011 – 2030) and electricity requirements
Year Nominal Growth ElectricityGDP (USD mln) Rate % MW 2011 8073.19 9.3 1250.00 2012 9216.57 14.16 1427.03 2013 10521.87 14.16 1629.14 2014 12012.05 14.16 1859.87 2015 13713.27 14.16 2123.27 2016 15655.43 14.16 2423.98 2017 17872.65 14.16 2767.28 2018 20403.88 14.16 3159.20 2019 23293.61 14.16 3606.63 2020 26592.59 14.16 4117.42 2021 30358.80 14.16 4700.56 2022 34658.40 14.16 5366.28 2023 39566.94 14.16 6126.29 2024 45170.66 14.16 6993.93 2025 51568.00 14.16 7984.45 2026 58871.39 14.16 9115.26 2027 67209.12 14.16 10406.22 2028 76727.69 14.16 11880.01 2029 87594.34 14.16 13562.53 2030 100000 14.16 15483.34
.
