Breaking News

Biti optimistic on Zimbabwe's growth prospects

by Business Reporter
01 February 2013 | 2768 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

Do you agree that foreskins of circumcised men could be used for witchcraft?

Yes
53.08%
No
15.17%
Hogwash
31.75%
211

Comments

News Updates

Email:

Latest News

MDC Renewal Team Statement on the state of the national economy - The ...

by Staff Reporter | 24 July 2014 | 176 Views

Face to Face with Walk Against Litter man - Fungai Chiposi

by Staff reporter | 24 July 2014 | 467 Views

Jonathan Moyo fails to report to police - Information minister Jonatha...

by Tichaona Sibanda | 24 July 2014 | 2472 Views

Parliament budget unit to be established before end of year - Before t...

by Staff Reporter | 24 July 2014 | 340 Views

Mugabe launches teachers' capacity development programme

by Staff Reporter | 24 July 2014 | 1201 Views

Accident waiting to happen, BCC do something - WhatsApp updatye

by Concerned Citizen | 24 July 2014 | 1169 Views

What's the farce about Tsvangirai UK trip - Quite puzzling is the exci...

by Gugugu Magorira | 24 July 2014 | 1018 Views

Use Right To Demonstrate Productively and Focus on the Dictatorship - ...

by Makusha Mugabe, Information and Publicity Secretary - MDC UK Midlands North | 24 July 2014 | 473 Views

'Zim banks have no capacity to fund mines,' says BAZ - THE banking sec...

by Oliver Kazunga | 24 July 2014 | 423 Views

Murderer gets a wholly suspended sentence for poisoning his son - A 25...

by Staff reporter | 24 July 2014 | 1279 Views

Mnangagwa backs harsh minimum mandatory sentence for rapists - Justice...

by Staff reporter | 24 July 2014 | 1074 Views

Finally, Chingoka quits Zimbabwe Cricket - In what most people would w...

by Staff Reporter | 24 July 2014 | 2237 Views

Chaos at Renkini bus terminus - WhatsApp update - 11:44am, 24 Jul - ...

by Concerned citizen | 24 July 2014 | 4476 Views

MDC-T Joburg District endorses Tsvangirai and Khupe - Press release 2...

by Lft Gen Simbarashe Mujeye | 24 July 2014 | 1799 Views

Why Zimbabwe has failed - The promise by ZANU (PF) to empower and deve...

by Vince Musewe | 24 July 2014 | 1512 Views

Newly appointed Zimpapers editor dies - Newly appointed Zimpapers and ...

by Staff Reporter | 24 July 2014 | 5407 Views

Scientists 'delete' HIV from human cells - Once HIV conquers a human c...

by Staff reporter | 24 July 2014 | 4890 Views

'Thieving goblin raping man and ruining his business' - Apparently a t...

by Staff reporter | 24 July 2014 | 2731 Views

'Robert Mugabe out of touch,' says Chamisa

by Staff reporter | 24 July 2014 | 2487 Views

Tendai Biti wants rand to replace US dollar

by Staff reporter | 24 July 2014 | 4124 Views

Zimbabwe diamonds stolen in Dubai - A parcel of Zimbabwe diamonds wort...

by Staff reporter | 24 July 2014 | 2188 Views

UK demo awaits Tsvangirai

by Staff reporter | 24 July 2014 | 1837 Views

Baba Jukwa saga, police summon Jonathan Moyo

by Staff reporter | 24 July 2014 | 3919 Views

Mugabe can sue if hurt

by Staff reporter | 24 July 2014 | 2000 Views

Zanu-PF war looms - ZANU-PF yesterday said the posts of second vice-pr...

by Staff reporter | 24 July 2014 | 2182 Views

Entertainment

Carl Joshua Ncube to tour with brand new material - The brand new stan...

by Staff Reporter | 24 July 2014 | 519 Views

Macheso gears up for UK tours - In an apparent joint preparation for t...

by Entertainment reporters | 23 July 2014 | 1312 Views

DJ Munya is back - After a two-year hiatus, DJ Munya - real name Munya...

by Entertainment Reporter | 23 July 2014 | 2148 Views

White guy plays chitekete - https://www.youtube.com/watch?v=kp16XF-Tcf...

by Staff Reporter | 23 July 2014 | 3152 Views

Beyonce and Jay Z to separate - claims - Jay Z and Beyonce are reporte...

by Staff reporter | 22 July 2014 | 3351 Views

No talent is meant for the grave, Dr Nkomo Commemoration - The prepara...

by Nokutula Ncube | 22 July 2014 | 1037 Views

Miss Curvy dinner flops

by Yeukai Karengezeka | 21 July 2014 | 5221 Views

'He's going to be in trouble once I die' says DJ Cleo's father - 64-ye...

by Staff reporter | 20 July 2014 | 5651 Views