Breaking News

Biti optimistic on Zimbabwe's growth prospects

by Business Reporter
01 February 2013 | 2872 Views
FINANCE Minister Tendai Biti yesterday said Zimbabwe had potential to be part of the African economic renaissance if it addressed its growth bottlenecks.

This project was being led by economic analysts to occur over the next four decades. Minister Biti said the African continent was poised for rapid economic growth if projections by leading economists Mckinsey Global Institute in its 2012 Africa progress report and research findings by renowed economist Professor Charles Robertson are anything to go by.

He made the remarks during a Confederation of Zimbabwe Industries economic outlook symposium held in Harare yesterday under the theme "2013 a Year of Decisive Action".

Projections by Mckinsey and Company are that Africa currently has 90 million people in the middle class, 382 million in formal employment, but will create 222 million more jobs by 2020 with 72 million of the projected new jobs coming from the non-agrcultural sector. Further, the report states that Africa would have about 128 million middle class consumers by 2020, signalling the emergence of a strong consumer class and rapid growth.

Professor Robertson contends that as Africa grows faster than most economies in the world, Nigeria would be the 13th largest economy in the world by 2050 while Africa's Gross Domestic Product will be an estimated US$29 trillion, which will be bigger that the economies of Europe and the United States of America. It compares Africa now to Asia in the 1970s.

The Africa progress report propounds that by 2050 Kenya will be a US$1 trillion economy, Uganda US$700 billion while Nigeria's economy would hit the US$3 trillion GDP mark as early as 2038.

Zimbabwe, stalked by economic challenges during the past 10 years, currently has an estimated US$8-US$10 billion GDP and while it grew at an average 10 percent in 2010 is seen expanding by about 5 percent this year due to a number of challenges that also include the high cost of finance, power shortages and uncompetitive industry.

"I want to talk about the challenges to Zimbabwe's economy. The first one is the issue of a dual enclave economy (agriculture and manufacturing) ' a economy that has largely been anchored by agriculture and mining," he said.

He said apart from relying on the two sectors Government needed to instutute measures that induce equal contribution to GDP from other key sectors including manufacturing, tourism, information communication and technology, finance, distribution and pharmaceuticals among others.

Minister Biti said the challenges that needed attention included policy consistency and reform, high levels of foreign debt, low foreign direct investment, lack of industrial competitiveness, need for peace and stability, low domestic savings, high Government consumption, high current account deficit, infrastructure decay, political differences and the breakdown of a social contract.

Minister Biti said to achieve rapid macro-economic growth, such as the average 7,4 percent rate at which the country grew since 2009, there was need for peaceful election environment, political maturity and leadership, policy consistency, accountability, transparency, strong economic linkages, stability, more FDI and competitive industry.




Further, he said there was need to guarantee food security, leverage mining through value addition, improve social service, and safety nets, adopt development budget, clear arrears and ensure debt sustainability and deepening the role of SMEs in the economy.

He said Zimbabwe had potential to do well but was playing second fiddle to neighbours Zambia and Mozambique that attracted US$2,9 billion and US$10 billion worth of foreign investment compared to its US$400 million last year.

Biti Prospects

Source: TH

Could there be war if Grace Mugabe becomes President?

Yes
75.32%
No
9.52%
Who cares?
15.15%
231

Comments

Latest Classifieds (Click Here For More)

Live Debate

Update from Africa Unity Square - Live Update

by Africa Unity Square | 2012 November 08 | 3443 Views

News Updates

Email:

Latest News

Cyclist kills pedestrian - A cyclist has been fined $400 for hitting a...

by Staff Reporter | 22 October 2014 | 145 Views

Mother of Pistorius's girlfriend insists she did not want 'revenge'

by Staff Reporter | 22 October 2014 | 562 Views

Uniting the Ndebele People - The Mzilikazi Cultural Association, MCA i...

by Mzilikazi Cultural Association | 22 October 2014 | 587 Views

'Insecure' man locks wife in bedroom until he returns from work

by Staff Reporter | 22 October 2014 | 1958 Views

Wrong Ndebele spellings in Coca-Cola Ads - After launching its "Share...

by Staff Reporter | 22 October 2014 | 1944 Views

Duo arrested for sodomising boy (10) - A 10-year-old boy has allegedly...

by Staff Reporter | 22 October 2014 | 1212 Views

BREAKING: Cops in riot gear chase people from Africa Unity Square

by Concerned Citizen | 22 October 2014 | 4624 Views

Dr Grace Mugabe's tours breathes hope

by Tawanda Museve | 22 October 2014 | 2704 Views

Matebeleland pressure group - cum political party takes Zanu PF war to...

by Tongai Zwayisa | 22 October 2014 | 2229 Views

Power cuts disrupt Sadc conference in Vic Falls

by Staff Reporter | 22 October 2014 | 1278 Views

Ebola vaccine trials in West Africa by January says WHO

by Staff Reporter | 22 October 2014 | 716 Views

Zimbabwean woman and her 3 children die in horrific car crash in Austr...

by Staff Reporter | 22 October 2014 | 2241 Views

Hail Dr Grace Mugabe

by Tawanda Museve | 22 October 2014 | 2697 Views

Wednesday chat with Auntie Noe - Love and Jealousy

by Nobuhle Virgie | 22 October 2014 | 1522 Views

Zim High Court refuses to impose death penalty

by Staff reporter | 22 October 2014 | 1273 Views

BCC invites nominations for 'City Legends' - The city of Bulawayo has ...

by Staff reporter | 22 October 2014 | 1062 Views

Will Mugabe reprimand his 'big headed' wife?

by Staff reporter | 22 October 2014 | 3541 Views

Cheeky granny (73) kills hubby (77) with bare hands - BULAWAYO - HELL ...

by Staff reporter | 22 October 2014 | 2320 Views

Air Zimbabwe to re-introduce flights to Masvingo - Struggling state-ow...

by Staff Reporter | 22 October 2014 | 1318 Views

Man, son-in-law exchange blows over 50 cents - A SCUFFLE between a ma...

by Thubelihle Mabhena | 22 October 2014 | 1726 Views

Mugabe backs Catholics' 'no gay' stance

by Staff reporter | 22 October 2014 | 1286 Views

'Evil' granny hires 'sniper' to poison grandson over inheritance - PLU...

by Court reporter | 22 October 2014 | 1663 Views

Why T.B. Joshua's church collapse actually convinced me he is a genuin...

by Johnson Abayomi | 22 October 2014 | 2756 Views

Mujuru incinerated over U.S government and United Nations links (Part 1)

by Itai Mushekwe/ Nancy Mabaya/ Mary-Kate Kahari | 22 October 2014 | 4239 Views

Ngidinga abantwana bomfowethu obesebenza koWankie Express Buses WhatsA...

by Concerned Uncle | 22 October 2014 | 815 Views

NK Ndlovu pulls out of VP race, backs Mphoko - Zanu-PF Politburo membe...

by Staff reporter | 22 October 2014 | 1449 Views

Simba Makoni accusses Mugabe's family of 'turning' Zim into Gushungo d...

by Staff Reporter | 22 October 2014 | 2679 Views

Entertainment

Zim representative in the Big Brother Africa survives eviction - Zimba...

by Staff reporter | 20 October 2014 | 2146 Views

Grace Mugabe's political comedy takes ZTV hostage - For the past two w...

by Staff reporter | 20 October 2014 | 4434 Views

Oliver Mtukudzi to deliver lecture at Musica 2014 - Zimbabwe's interna...

by Staff reporter | 19 October 2014 | 1231 Views

Gezha maoko - Ladybee (Official Video)

by Staff Reporter | 19 October 2014 | 2134 Views

Matebeleland Music & Arts Festival - Sivala umnyaka ngengoma lapho sit...

by Staff Reporter | 17 October 2014 | 1602 Views

Obediah Matulana releases Christmas DVD - Bulawayo-based musician Obed...

by Staff reporter | 16 October 2014 | 1834 Views

Grace Mugabe honoured in song - Dancehall outfit Final Warning has rel...

by Tawanda Marwizi | 15 October 2014 | 2297 Views

US firm makes money off Zimbabwe concept - United States transport sh...

by Staff reporter | 14 October 2014 | 2884 Views
iBlog