Breaking News

Biti optimistic on Zimbabwe's growth prospects

by Business Reporter
01 February 2013 | 2176 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


News Updates


Latest News

Two cops shot dead in Chipinge - Two police officers and a suspected p...

by Staff Reporter | 28 November 2015 | 1210 Views

Mphoko challenges Bulawayo - Acting President Phelekezela Mphoko has c...

by Staff reporter | 28 November 2015 | 1905 Views

Mugabe's white man

by Staff reporter | 28 November 2015 | 2720 Views

WATCH: White man chanting Mugabe slogans - Peter Haritatos is a busin...

by facebook | 28 November 2015 | 1823 Views

'Zimbabwe to reverse failed indigenisation,' says Mnangagwa - Vice Pre...

by Staff reporter | 28 November 2015 | 2178 Views

Tsholotsho FC survives relagation - 2015 FINAL LOG STANDINGSC* Chicken...

by sports reporter | 28 November 2015 | 2312 Views

South African General work visa - A Tale of unintended consequences

by Munyaradzi Nkomo . B.Com Law ; LL.B UWC | 28 November 2015 | 1724 Views

Mugabe's former ally opens lid on Gukurahundi - Respected Zanu-PF elde...

by Staff reporter | 28 November 2015 | 1749 Views

Security company demands $186 000 from Pioneer Transport

by Staff reporter | 28 November 2015 | 1061 Views

Didymus Mutasa makes a surprise appearance in public

by Staff reporter | 28 November 2015 | 2258 Views

$6 million worth of Zimbabwe bond coins trigger widespread cheer

by Staff reporter | 28 November 2015 | 1162 Views

'Mugabe must name successor' - With Zanu-PF's seemingly unstoppable fa...

by Staff reporter | 28 November 2015 | 812 Views

Soldiers, police deployed in rural areas to instill fear among village...

by Staff reporter | 28 November 2015 | 2044 Views

Mugabe central in Zanu-PF factional wars - FORMER Midlands governor Ce...

by Staff reporter | 28 November 2015 | 1431 Views

MP digs into Presidential input scheme - MP for Mutasa Central Trevor ...

by Stephen Jakes | 28 November 2015 | 829 Views

Zupco imported buses still parked due to govt failure top pay duty

by Stephen Jakes | 28 November 2015 | 1726 Views

'Hungry' Zimbabwean journalists receive hampers from Grace Mugabe - Ch...

by Staff reporter | 28 November 2015 | 1302 Views

Econet not treating us as buddies - Gwanda residents have expressed an...

by Staff Reporter | 28 November 2015 | 821 Views

Woman seeks protection from son's girlfriend - AFTER receiving several...

by Collette Mukome | 28 November 2015 | 1003 Views

Jonathan Moyo rallies Tsholotsho FC

by Sikhumbuzo Moyo | 28 November 2015 | 1806 Views

Hubby snatcher escapes jail term - ATTACKING the wife of her boyfriend...

by Collette Mukome | 28 November 2015 | 1300 Views

Woman confessed to stealing 5 times from the same supermarket without ...

by Elizabeth Tsuro | 28 November 2015 | 1259 Views

Street knockdown man dies

by Whinsley Masara | 28 November 2015 | 2975 Views

Businesswoman wrecks marriage - RUSAPE businesswoman, Gladys Svosve - ...

by Lovemore Kadzura | 28 November 2015 | 2157 Views


Bob Marley family confront Zimbabwe Music Awards

by Bongani Ndlovu | 25 November 2015 | 4446 Views

WATCH: Late Night show's analysis of Zanu-PF factional battles - LATE ...

by Staff reporter | 24 November 2015 | 2916 Views

Pregnancy won't stop me from flying, says Sandra Ndebele

by Bongani Ndlovu | 24 November 2015 | 4501 Views

Frustrated Hosiah Chipanga dumps Zimbabwe

by Staff Reporter | 24 November 2015 | 5712 Views

Miss Rural Goromonzi Crowned - It was a day to remember for the Goromo...

by Stephen Jakes | 24 November 2015 | 1763 Views

Heavily pregnant Sandy delays flight for an hour

by Staff reporter | 23 November 2015 | 8356 Views

Eutelsat to speed up Zimbabwe digitisation

by Staff reporter | 23 November 2015 | 1945 Views

Apple Watch Teardown Reveals Unique Hardware And Replaceable Parts

The apple watch may not be fine jewelry, but bill detwiler cracks it open and shows you why he thinks it's a fine piece of tech. the apple watch may be beautiful on the outside, but how about on the inside? in this cracking open installment, we go in... Read More
Sergey 11 June 2015 ago

Ios 9 Features Inspired By Android

apple announced ios 9 on monday, and while watching the keynote, i had just a little bit of déjà vu. most of ios 9's new features seem to be squarely aimed at apple's biggest rival in mobile: android. specifically, they were about catching up to ... Read More
Sergey 13 June 2015 ago