The Sunday News
Roberta Katunga/Dumisani Nsingo/Nqobizitha Dhlamini Business Reporters
CAPTAINS of industry have dubbed 2015 as the year of restoration in terms of capacity for production as well as economic stability with major policy reviews expected to spearhead growth. Despite a number of challenges affecting the economy in 2014, businesses have expressed optimism as a lot of changes are expected to take place to drive the country’s industry and commerce.
Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland chapter chairperson, Mr Crispen Mugova, said 2015 is a special year especially for restoration of economic stability as the ground work has already been laid this year.
“Industries have been investing in new equipment and deals which will both result in an increase in production for both goods and services. Government has also implemented a number of policies which will work,” said Mr Mugova.
Some of the policies implemented include the introduction of bond coins which are meant to ease change shortage; lobbying of non-residents participation on the Zimbabwe Stock Exchange as well as the interbank market.
Mr Mugova said these policies will assist in capacity utilisation.
“The banking sector is also coming up with remodelled products tailor made for businesses and these are specific to certain companies. We want to urge the business community to re-open businesses on time to allow for strategic planning and to consolidate operations,” he said.
In a separate interview, economic analyst, Mr Nicky Moyo, said industry has a great chance of revival in the coming year as a number of factors that were previously barriers are set to be addressed.
“One of the greatest opportunities that the business people have been presented with is the fact that the Vice-President, Honourable Emmerson Mnangagwa has pledged to set the business sector as one of his major priorities in his term of office.
He recently had an audience with the businesspeople and invited more aspiring businesspeople to submit their proposals as the country is set to experience industrial revival,” Mr Moyo said.
Mr Moyo said power projects that are underway and some which are yet to commence will go a long way in ensuring that industry experiences significant growth in the coming year.
“The power projects in Kariba and Hwange which are set to give these power plants facelifts will go a long way in ensuring the growth of the industry. This is a huge step in preparation of the coming year as power was a barrier especially to the manufacturing sector in the past year and these projects will ensure that power ceases to be a setback to the industry,” he said.
Mr Moyo further expressed optimism on the development and revitalisation of the industry in the year 2015 as more policies in line with the economic blueprint, Zim Asset are being adopted.
“It is very important for reforms to be adopted in taxation of the small to medium business people and the Government needs to simplify the rules on indigenisation to promote foreign investors especially in areas that require attention like infrastructural development including farming as food security is very important.
“We also need to continue aligning ourselves with the Zim Asset policy so that maximum growth is realised,” he said.
Confederation of Zimbabwe Industries president, Mr Charles Msipa, said the growth of the industry in the coming year will depend mainly on policy makers.
“The situation in the manufacturing sector is very critical and it will depend on the policy makers and the private sector to ensure change for the better. We will definitely join forces with the Vice-President Mnangagwa in ensuring the country realises value addition, job creation and other important aspects. The success of the industry will definitely rely on how well the major players collaborate,” he said.
Mr Msipa also said the country is in need of foreign direct investors that will help resolve shortage of capital.
“The indigenisation policies are somewhat a roadblock to foreign investors hence simplifying them will go a long way in attracting foreign investors. We also need to review the country’s business environment as at the moment doing business in Zimbabwe is expensive compared to other countries,” Mr Msipa said.
Economist Mr Bongani Ngwenya said the economy underperformed last year and the repercussions even made the Stock Exchange to catch a cold.
“For the first time the negative economic effects affected the Stock Exchange. The import bill was also high towards the end of the year, which shows that the economy was underperforming this year,” he said.
He, however, said the full implementation of the country’s economic blue print, Zim Asset was likely to spur the growth of the country’s economy.
“There is now serious talk that Zim Asset will be fully implemented which will be a positive outlook for reviving the economy. The shakeup that happened in reshuffling the ministries will have a positive impact on reviving the economy,” Mr Ngwenya said.
He urged the Government to channel more resources towards strategic sectors of the economy specifically mining so as to improve the country’s Gross Domestic Product (GDP).
“The mining sector was badly affected because not much was allocated to the ministry in this year’s national budget. More should be done to allocate money so that the economy operates at full throttle,” Mr Ngwenya said.
However, prominent economist and director of the Labour and Economic Development Research Institute of Zimbabwe, Dr Godfrey Kanyenze was of the view that the economic rebound experienced since the advent of multi-currencies and the end of hyperinflation in 2009 has been exhausted.
“Having averaged 9,8 percent during the period 2009-2012, economic growth declined to an estimated 4,5 percent in 2013 due to uncertainties associated with an election-year, weakening demand for key exports and tighter liquidity conditions, lack of competitiveness, and adverse weather.
“Economic growth in 2014 is estimated at 3,1 percent, reflecting the liquidity shortages in the economy, low domestic savings, investment inflows and power supply shortages, among other factors,” he said.
He said unlike the trends exhibited by all the other regions in the world, growth in 2014 decelerated from an estimated 4,5 percent in 2013, and is projected to remain almost at a standstill at 3,2 percent in 2015, against Zim Asset targets of 6,1 percent in 2014 and 6,4 percent in 2015.
The global economy was projected to grow from three percent in 2013 to 3,3 percent in 2014 and 3,8 percent in 2015, while Sub-Saharan Africa’s growth is projected to accelerate from 4,9 percent to 5,4 percent and 5,8 percent, and Southern African Development Community from 3,3 to 4 percent and 4,4 percent during the respective periods.
