Breaking News

Biti optimistic on Zimbabwe's growth prospects

by Business Reporter
01 February 2013 | 2882 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
74.78%
No
8.52%
Who cares?
16.7%
575

Comments

Latest Classifieds (Click Here For More)

News Updates

Email:

Latest News

Mutasa booed by war vets, Mugabe says 'you started it' - Zanu PF Secre...

by Staff Reporter | 30 October 2014 | 190 Views

'Thina abeNkayi sokhala kuze kube nini ' - WhatsApp update

by Concerned Nkayi Native | 30 October 2014 | 423 Views

'Tisu takanogwadama kukumbira Mai Mugabe,' says Mahofa - Video - Zan...

by Staff Reporter | 30 October 2014 | 980 Views

SA Police to investigate Zim torture claims

by Staff Reporter | 30 October 2014 | 916 Views

Fallacy of internal Zanu-PF Revolt - The figments of private press's i...

by Caitlin Kamba | 30 October 2014 | 1298 Views

Grace must give details on Mujuru's corrupt acts

by Zanda Shumba | 30 October 2014 | 1871 Views

A letter to Amai Mujuru and Amai Mugabe - Zimbabwe is a great country ...

by Vince Musewe | 30 October 2014 | 1472 Views

'Jonathan Moyo after my bacon' - Jealousy Mawarire, the journalist who...

by Staff reporter | 30 October 2014 | 1204 Views

Solomon Mujuru haunted in grave - As the Zanu-PF politburo meets today...

by Staff reporter | 30 October 2014 | 1129 Views

One Giant Step for ZAPU - Today on the 29th October 2014 a group of ZA...

by Thulani Nkala | 30 October 2014 | 885 Views

CBD accident in pictures - This picture collage shows the wrecks of t...

by Munyaradzi Chamalimba | 30 October 2014 | 3917 Views

Zanu-PF decisive Politburo - Live updates

by Staff reporter | 30 October 2014 | 9731 Views

'Insolvent' Matonga fails to pay debts, property attached - FORMER Dep...

by Court Reporter | 30 October 2014 | 2412 Views

Drama as goblin pays family a visit in broad day light - BULAWAYO - A ...

by Staff Reporter | 30 October 2014 | 3727 Views

Mugabe says his time as President isn't over - Zimbabwe's 90-year-old ...

by Bloomberg | 30 October 2014 | 1425 Views

Mugabe's Zanu-PF must bring conspirators to book - There is a group in...

by Chronicle editorial comment | 30 October 2014 | 1064 Views

SK Moyo's ties with Mujuru cost him VP post

by Staff Reporter | 30 October 2014 | 4174 Views

Desperate govt lures more foreign investors, Iran eyes business in Zim...

by Business Reporter | 30 October 2014 | 924 Views

Police struggle to pay former cop's $64 000

by Court reporter | 30 October 2014 | 1878 Views

Ailing Nigeria based Zim driver treated from a car as Ebola fears rage...

by Staff reporter | 30 October 2014 | 2178 Views

Vegetable thief bashes guards, sets dogs on them

by Court Reporter | 30 October 2014 | 1140 Views

Judge applicants accept 'pea nuts' for salaries

by Court Reporter | 30 October 2014 | 1459 Views

Macheso's hubby to 'spill bins' in court

by Court reporter | 30 October 2014 | 1965 Views

MDC officials stampede to share $2000?

by Court reporter | 30 October 2014 | 1533 Views

Zim man who lost wife, three children in Australia car crash speaks - ...

by Staff Reporter | 30 October 2014 | 2426 Views

Mujuru family involved in dirty gold - Evidence has emerged of the se...

by Gerry Jackson | 30 October 2014 | 3647 Views

'Prophet' bashes girlfriend over pregnancy - A SELF-proclaimed prophet...

by Plaxcedes Hove | 30 October 2014 | 1990 Views

War vets demo against Ray Kaukonde postponed - Zanu-PF provincial ch...

by Staff reporter | 30 October 2014 | 1768 Views

Entertainment

Zimbabwe's JJ survives Big Brother Africa eviction... again - Zimbabw...

by Staff reporter | 27 October 2014 | 1840 Views

Carl Joshua Ncube to star in game show - Comedian Carl Joshua Ncube wi...

by Staff reporter | 23 October 2014 | 1485 Views

LadyBee Anondida - Official video

by Staff Reporter | 23 October 2014 | 3815 Views

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

by Staff reporter | 20 October 2014 | 3387 Views

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

by Staff reporter | 20 October 2014 | 6341 Views

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

by Staff reporter | 19 October 2014 | 2059 Views

Gezha maoko - Ladybee (Official Video)

by Staff Reporter | 19 October 2014 | 3926 Views

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

by Staff Reporter | 17 October 2014 | 2382 Views
iBlog