Breaking News

Biti optimistic on Zimbabwe's growth prospects

by Business Reporter
01 February 2013 | 2905 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

Should Mujuru skip the border and fax her resignation?

Yes
15.11%
No
82.52%
Tough choice
2.37%
1350

Comments

News Updates

Email:

Latest News

2 Zimbabwean brothers escaped death in KwaZulu-Natal - Durban - Two Zi...

by Staff reporter | 24 November 2014 | 3199 Views

How Mugabe has successfully manipulated Zanu-PF for 34 years - Preside...

by Prince Tongogara | 24 November 2014 | 1782 Views

Zanu-PF taking advantage of Mugabe's age - As president Robert Mugabe ...

by Chris Goko | 24 November 2014 | 2231 Views

Zanu-PF is disintegrating - Zimbabwe is again at an "interesting" plac...

by Eddie Cross | 24 November 2014 | 2623 Views

Why Mugabe should go now! - When someone is sick the doctor looks for ...

by Pius Wakatama | 24 November 2014 | 2533 Views

Stop 'buying' people with your money, prophet Magaya told

by Staff Reporter | 24 November 2014 | 4684 Views

Mnangagwa wins $50 million defamation against Bhasikiti

by Staff reporter | 24 November 2014 | 3806 Views

Mugabe to keep 'his Zimbabwe' into the grave

by Farai Mbira - ZUNDE | 24 November 2014 | 2708 Views

ZBC suspends Tazzen Mandizvidza and 3 managers - The Zimbabwe Broadcas...

by Staff reporter | 24 November 2014 | 4531 Views

Grace Mugabe's dirty tricks could hurt Mugabe - In two weeks, Presiden...

by Ray Ndlovu | 24 November 2014 | 5323 Views

Maid in toddler torture video faces murder charge - Police have amend...

by Staff Reporter | 24 November 2014 | 4551 Views

Mugabe in politburo jibes - President Robert Mugabe yesterday demonstr...

by Staff reporter | 24 November 2014 | 5111 Views

'I quit' - Goche - Politburo heavyweight Nicholas Goche dramatically q...

by Staff reporter | 24 November 2014 | 8052 Views

Baba Jukwa saga sop up Mutsvangwa

by Staff Reporter | 24 November 2014 | 6905 Views

Pregnant Zimbabwean women suffer at 'hellish' SA hospitals - Priscah N...

by Staff reporter | 24 November 2014 | 4000 Views

Tsholotsho FC shun Bulawayo relocation - NEWLY promoted PSL side Tshol...

by Supersport | 24 November 2014 | 3044 Views

The truth about snake on ATM in Harare

by Concerned citizen | 24 November 2014 | 8086 Views

Injivas exchange wives in a 'tit for tat' - CAN it be classified as a ...

by Gibson Mhaka | 24 November 2014 | 6074 Views

Tout caught pants down with lover in office! - A BULAWAYO based teenag...

by Danisa Masuku | 24 November 2014 | 5788 Views

Former Miss Zimbabwe in fist fight over hubby - VIVACIOUS former Miss ...

by Nhtalwenhle Ncube | 24 November 2014 | 5247 Views

Beitbridge bus accident: Removal of the Stuck Drivers - Video

by Thomas Arnold | 24 November 2014 | 4072 Views

Zim artist stabbed to death in South Africa - A ZIMBABWEAN man was fo...

by Staff Reporter | 24 November 2014 | 3360 Views

All Zimbabwean families to be tested for HIV/AIDS - Government has emb...

by Staff Reporter | 24 November 2014 | 3304 Views

Ousted Zanu-PF officials 'smuggled; into Congress - SOME Zanu-PF membe...

by Staff Reporter | 24 November 2014 | 3242 Views

'Grace's reckless attacks on Mujuru are dangerous' - POLITICAL analy...

by Staff Reporter | 24 November 2014 | 3271 Views

Mujuru's fate now in Mugabe's hands - PRESIDENT Robert Mugabe has cha...

by Reuters | 24 November 2014 | 3094 Views

Pasuwa quits Dembare - HISTORY making Dynamos coach Callisto Pasuwa se...

by Sports Reporter | 24 November 2014 | 5341 Views

Francis Nhema, Flora Buka applications rejected

by David Shumba | 24 November 2014 | 3697 Views

Mugabe picks Oppah Muchinguri for Vice President

by Mary-kate Kahari | 24 November 2014 | 13642 Views

Entertainment

Zimbabwean comedy is officially funny in Australia

by Staff reporter | 24 November 2014 | 1375 Views

Zanu-PF youths release album - ZANU-PF youths in Nyanga have recorded ...

by Talent Simbi | 22 November 2014 | 1489 Views

Tuku tribute dinner postponed - With all the preparations at a very ad...

by Tuku Music | 21 November 2014 | 2581 Views

Promoters, bouncers clash

by Staff Reporter | 21 November 2014 | 2300 Views

Joy as Mthwakazi artists Unite - 5:03am, Nov 21 - ‪+27 7* *** ****: ...

by Paul Masuku | 21 November 2014 | 1650 Views

Mafikizolo billed for Zimbabwe show - South African music duo Mafikiz...

by Staff reporter | 21 November 2014 | 3212 Views

Miss Zimbabwe's bid for Miss World pageant doomed - Miss Zimbabwe Tend...

by Staff reporter | 20 November 2014 | 2312 Views

Victory for Alick Macheso

by Staff reporter | 20 November 2014 | 7012 Views
iBlog

Auslogics Boostspeed 7 - More Powerful And User-friendly Than Ever

Auslogics boostspeed 7 - more powerful and user-friendly than ever!wondering how to fix slow computer performance? experts recommend auslogics boostspeed 7 - the most comprehensive system optimization software! auslogics boostspeed 7 is here!the bran... Read More
ITnews 26 August 2014 ago

Obviously, Windows Xp Has Nothing More To Offer

With no support from the manufacturer, windows xp no longer receives antivirus updates, which provoked an increase in the number of attacks on xp users. according to avast company, windows xp systems are attacked 6 times more often than the devices r... Read More
Sergey 12 June 2014 ago