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Zimbabwe:Industrialise Africa, Light Up , Power , Intergrate , Feed And Improve Quality Of Life For The People Of Africa Says African Bank Manager

July 1, 2018

By Nevson Mpofu

AfDB country manager Damoni Kitabire.

AfDB country manager Damoni Kitabire.

The Private Sector Development Round-Table took aboard broader minds to settle down with ideas, to give solutions and ameliorate challenges. These have been experienced for the past decades in the country in both Government and Private Sector.

These challenges include lack of working capital, liquidity constraints, inadequate foreign currents for Manufacturing companies to import the much needed raw materials .Lastly, continued influx of cheap imported products.

The Minister of Finance and Economic Development, Honorable Patrick Chinamasa  ,today in Harare said the truth is the country is still grappling with challenges in terms of foreign currents . He pointed out that, the country needs support working with the private Sector to foster economic development.

‘’We have had some challenges, but we need to attract Foreign Investments into the country through conducive policies at home. With the coming in of Investors, we create foreign currents as a country.

‘’Working with the Private Sector, we create more space for national economic development meant to create employment. This is possible working with the African Development Bank.

‘’We therefore need to give support to the 3 main sectors of the economy, that is Agriculture, Mining and Manufacturing Industry, said Chinamasa .

Zimbabwe’s economy needs the development of 3 main sectors as mentioned above. The Primary sector economy development that is Agriculture and Mining pushes the locomotion of the catalytic machinery in Manufacturing Industries.

Minister of Industry, Commerce and Enterprise Development, Honorable Mike Bimha said low business confidence in the country has over the past years hampered Private Sector growth.

‘’This has impacted on national economic growth, but we cherish the work some banks have done to raise the Small to Medium Enterprises which contributes to the growth of the Economy.

‘’The challenge is of high cost of Infrastructure especially energy and water in the Private sector. Such challenges impedes on economic development ‘’.

Zimbabwe can recover its economic wound of the past as long the Private Sector shows resilience together with the Government on Infrastructural development. Giving a vibrant comment at the round table Mr Damoni Kitabire , AFRICAN DEVELOPMENT BANK Country Manager said with the new Government in place there are changes to come .

‘’The Bank’s strategy is Industrialize Africa , Light up and power Africa , feed Africa  and improve the quality of life for the People of Africa .

’’We look forward towards Economic and Structural Reforms, rebuild confidence through restoration of private property rights, and ensure macro-economic stability and growth.

‘’Governance issue needs improvements through stake-holder collaboration and Integration like at regional levels, countries come to work together for a strong reason.

‘’Improving on Governance comes with a business environment that is conducive to Domestic and Foreign Investors who have confidence in a country where fiscal and debt arrears are cleared’’.

The Government launched the New Investment Policy this year .This emphasizes the need to pursue market based approaches to easy economic management and improved efficiency in public administration. There are vast demands for International funding increase to the Private Sector like echoed by the Country Representative of the Bank.

‘’The need for re-tooling is vital, but there is need for modernization of production in a modern developed economy. Secondly the need to finance Trade stands important as partnerships are created.

‘’Sustainable and Inclusive economic growth is there in the AFRICAN REGION to reduce poverty. How then can this be reached in Africa’’? , he asked in his conclusion.

The question needed an answer from Governor of the Reserve Bank DR John Mangundya . He said there is need for the banks re-engagement with the Private Sector in the country. He also talked of lucrative right Investments at the right time for the right reasons.

‘’Banks, if they work with the Private Sector, it goes well. There must be re-engagements, but also to re-visit post reflective policies which developed the country before the challenges.

‘’What is more important is that the Private Sector must well be equipped with all the right resources at the right time, for the right people at the right place.

Though Trade is picking up , Investments are weak . There are issues which can derail development like policy uncertainty, possible financial market turbulence.

Proceeding on  ,Dr Mangundya reiterated the need for reforms of economic growth for the reduction of poverty.

‘’For the achievement of economic growth, strong and sustainable development, robust private sector must be supported by an efficient banking system.

A leading Economist Prosper Chitambira a Labour and Economic Development consultant notes that Zimbabwe’s  private sector requires strategic effort from financial sector , manufacturing industry , Agriculture , Mining , ICT sector and Small to medium enterprise for viable projects .

‘’Such requirement would reduce poverty through economic growth and fast fostering development of the Manufacturing sector to create jobs in the country.

‘’However, we can- not do without policies, social, economic and political, political will and strategies in line with principles which sets the ball rolling.

‘’African countries Development’s engagement with the Government is saliently vital for mapping way forward in crafting investments opportunities for the country’’, said the Economist.

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