Can Zim experience roaring 2030s to become Africa’s lion economy

The Zimbabwean economy has been facing economic challenges for years but now there is a chance that the country can experience an economic boom and become a giant African economy.

Zimbabwe has one of the most diversified economic structures within Africa. The most important sectors include mining, agriculture, tourism and manufacturing. Lessons can be drawn from the Asian Tigers (Taiwan, South Korea, Hong Kong and Singapore) who had a massive economic growth between 1960-80s.

Their success has been tagged the “Asian Miracle” because of the level of advancement in such little period of time.

The economies took only about three decades to become among the wealthiest economies in the global system.

The Asian Tigers were largely agrarian economies on the initial stages of development and transited from agricultural self-sufficiency to agricultural commercialisation by exporting cash crops which led to export growth.

Their economic growth was attributed to investment in development projects specifically in human and capital growth. Other factors that led to the growth of the Asian Tigers include the involvement of the state in coming up and implementation of long term consistent economic plans and policies for generating revenue — good governance which had strong anti-corruption measures, and involvement of non-state actors who were willing to support the government and these attracted foreign direct investment especially from the US and Britain.

Countries like South Korea developed from an agricultural to a manufacturing and electronic hub. The South Korean government instituted good economic initiatives and policies and funded excellent educational programs in public schools, while the US aided South Korea (mid 1960s) by providing it with markets for its agricultural products such as rice.

The Singapore Economic Development Board formulated and implemented national economic strategies to promote the country’s manufacturing sector where industrial estates were set up and foreign investment was attracted to Singapore through tax incentives.

Questions have been raised whether the Asian Tigers experience can be replicated in other “less developed countries” including African states. For the US, the roaring 20s (1920-1929) was a time of prosperity after winning World War I between (1914-1918).

It was a time for mass production, economic prosperity, driving new Ford cars, use of electricity in industries, buying stocks on the market, low bank interests and enjoying good money.

With the African Continental Free Trade Agreement (AfCFTA) in place, it seeks to cement regional integration, enable south-south cooperation and improve trade between African states by removing all the barriers to trade.

Zimbabwe has put in place the National Development Strategy 1 (2021-2025) to steer development and achieve Vision 2030 — becoming an upper middle economy by 2030.

Zimbabwe’s agricultural sector can play an important role in boosting the economy and retain the “Africa’s bread basket” status as was experienced by South Korea.

The Second Republic has fully supported the agricultural sector through Command Agriculture, Pfumvudza and Presidential Input Support Scheme to small scale farmers in rural communities.

The NDS1 focuses on increasing maize and beef production, reduce food insecurity, respect property and human rights, improve value addition on exports especially minerals, providing affordable and quality housing, use of information, communication and technologies (ICT’s) for industrialisation & innovation, re-engagement programme, promoting tourism and combating corruption.

In respect of respecting property rights, the Government has signed agreements meant to compensate farmers who lost their farms (protected under BIPPAs) during Land Reform Programme.

To become a giant African economy, the country needs to add value on its exports as exportation of raw materials is not beneficial to the economy.

The NDS1 will tap into the AfCFTA and bring out trade and business opportunities for the country toward massive industrialisation.

Small to medium businesses have the opportunity to expand in their sectors since they can export goods and services which increases their market and foreign currency base.

The manufacturing sector needs to industrialise and value addition on exports so that they fetch better on international markets.

If the country is to experience an economic boom, corruption needs to be combated as to boost investor confidence and increase transparency and accountability.

The country is losing approximately US$500 million annually due to corruption and the Government needs to intensify and expand the horizons of the Zimbabwe Anti-Corruption Commission (Zacc) and Special Anti-Corruption Unit (SACU) in combating corruption.

Zacc in its January 2021 report indicated that they had recovered millions of United States dollars through repossession of local and foreign assets that were bought through corruption.
Lessons can be drawn from the Asian Tigers where there was low corruption, high infrastructural development (road, railway and ports), high production in industries and government played a leading role in ensuring there was rapid economic growth.

Currency stability and low inflationary levels are important as local and foreign investors can deposit money in the formal banking system. Currently, the RBZ Auction System has managed to stabilise the exchange rate and prices of commodities.

The framework provided for in the NDS1 is in tandem with the rapid economic growth the Asian Tigers went through but however the implementation phase is critical if any targets and goals are to be achieve.

Sanctions have slowed economic growth as some companies continue to be denied international lines of credit to expand their businesses.

The country has been negatively affected by bad publicity where the West portray Zimbabwe as politically unstable.

The re-engagement processes the Government is undertaking is important as it tries to bring about a positive image of the country which in turn improves tourism sector and attracts Foreign Direct Investment.

The Ministry of Foreign Affairs and International Trade and Zimbabwean diplomats based in foreign embassies’ communication skills and negotiations are critical in the re- engagement drive and reshaping Zimbabwe’s interaction with other countries.

Zimbabwe can indeed become an African lion economy drawing lessons from the Asian Tigers who transformed over three decades from developing to developed countries.

The Government is in the right direction and if its efforts in fighting corruption, value addition on our goods (raw materials), re-engagement, currency stability and low inflationary levels are maintained and consistent until 2030, Zimbabwe can become an African lion economy.

The Government must continue to play a leading role in steering economic growth and development as well as intensifying development operations and actions.-chronicle.cl.zw