The Sunday News
Kuda Bwititi, Harare Bureau
THE success of the Special Maize Import Substitution Programme (Command Agriculture) has charmed the IMF into an upward review of Zimbabwe’s economic growth projections.
In its IMF World Economic Outlook October 2017 report released last week, the lender forecast 2,8 percent economic growth by year-end after a projection of two percent at the start of 2017.
Government set an economic growth target of 3,7 percent.
IMF Country Representative Mr Christopher Beddies on Friday told our Harare Bureau that the success of the agriculture season had boosted Zimbabwe’s growth trajectory.
“IMF has projected Zimbabwe’s economy to grow by 2,8 percent, upwards from two percent earlier projected. Like we said before, this year’s growth forecast is based largely on the good agricultural outcomes as a result of the good rainfall last season,” he said.
Mr Beddies said Zimbabwe-IMF was continuing and a technical team would meet Finance and Economic Development Minister Dr Ignatius Chombo next week.
In interview, economist Mr Gift Mugano said negative sentiments about the economy were misplaced.
“The numbers do not lie and while we still have challenges, our economy is heading in the right direction,” he said.
“The good performance of the agriculture sector cannot be understated because this is a sector where you can actually see the tangible benefits being experienced by the ordinary people as farmers are smiling all the way to the bank.
“We have also been doing very well in exports, particularly in mining and so far this year, we have already exported US$4 billion, which is figure that we last reached five years ago.
“People should not think that the cash shortages that we are experiencing are a sign that the economy is going down. In fact, the country has liquidity but the only challenge is access to cash,” he said.
Another economist, Mr Kingstone Khanyile, said there was evidence that the economy was growing.
“Anyone who does not see the positive side of our economy must be living in denial,” he said. “The bumper harvest will ensure that the country has food security, which is the most important aspect in any economy.
“Moreso, we have surplus to make sure that we do not import the staple which means we have more financial resources to channel to other sectors of the economy. People should also understand that the entire value chain that is centred on agriculture is also going to grow.
“We need to continue to reduce imports especially on things that we can produce locally. For example, we import a lot of soya products for the manufacture of cooking oil and these are some of the things we can control by having a holistic import substitution policy.
“Individuals also have a penchant for importing that is why you see people sacrificing their foreign currency to go to South Africa and Zambia to buy products available locally.
