GDP data shows need for devolution

The provincial data for gross domestic product (GDP) show glaring inequalities in the distribution of the country’s wealth with Harare alone accounting for 39,55 percent of the total while the other nine provinces share the remaining 60,44 percent.

The data puts into perspective the New Dispensation’s vigorous push for devolution and decentralisation which is meant to expedite development in provinces lagging behind.

GDP is the final value of goods and services produced within the geographic boundaries of a given area during a year and it is widely viewed as a key indicator of the economic performance of that given area.

Information and Publicity Minister Senator Monica Mutsvangwa said after yesterday’s Cabinet meeting that Finance and Economic Development Minister Professor Mthuli Ncube told Cabinet that predominately rural provinces made the lowest contribution to the national GDP.

The lowest contributors, according to the 2012-2018 data compiled by ZimStat were Mashonaland Central, Matabeleland North, Manicaland, Matabeleland South and Masvingo.

Joining Harare as the better contributors are the more urban provinces of Bulawayo, Mashonaland East, Mashonaland West and Midlands.

“Cabinet noted with satisfaction that this is the first such compilation since Independence, which shows the disaggregated figures per province depicting contributions to national economic performance.

“Compilation and publication of the provincial GDPs buttresses implementation of the devolution and decentralisation programme, which brings with it increasing demand for sub-national socio-economic statistics,” she said.

The provincial GDPs in 2018 were: Bulawayo US$2.26 billion, Harare US$9.56 billion, Manicaland US$1.46 billion, Mashonaland Central US$1.08 billion, Mashonaland East US$2.22 billion, Mashonaland West US$2.14 billion, Masvingo US$1.41 billion, Matabeleland North US$1.16 billion, Matabeleland South US$940 million, and Midlands US$1.94 billion.

Since populations vary, per capita statistics give a clearer result and while the rural-urban divide is strong, big mining and tourism centres can make a difference.

The per capita provincial GDPs for 2018 were: Bulawayo US$3 048, Harare US$3 614, Manicaland US$743, Mashonaland Central US$784, Mashonaland East US$1 408, Mashonaland West US$1 206, Masvingo US$820, Matabeleland North US$1 333, Matabeleland South US$1 186, and Midlands US$1 026.

Minister Mutsvangwa said: “Government reiterates that, going forward, collecting and

analysing statistical data disaggregated by province and subsector economic activities will continue to form ZimStat’s core functions.

“The data will be key in guiding the economic reform agenda of the Second Republic in order to guarantee equitable development as we move towards Vision 2030.

“Ministers of State for Provincial Affairs will make use of the data in coming up with provincial development plans. The data will henceforth be published for the information of the general citizenry.”

Despite the spirited attempts for decentralisation, it does not negate the fact that Zimbabwe remains a unitary State with one centre of power but with a deliberate plan to drive the devolution agenda aimed at taking development to every corner of the country with major inputs from the local communities.

On the issue of salaries, Professor Ncube said the wages will keep on improving as the economy grows and Government has been clear that all expenditure must be tied to revenue, with no borrowing for recurrent expenditure.-herald.cl.zw

Tourism sector wants permit/licence fees cut
PLAYERS in the tourism industry have appealed to the Government to slash permit and licence fees by 50 percent to facilitate the sector’s recovery from the Covid-19 losses.

Tourism is one of the hardest hit sectors as a result of international travel restrictions due to Covid-19. More than three-quarters of jobs are estimated to have been lost as hoteliers and operators closed operations owing to lack of business.

While doing their part to support domestic tourism, industry players say the level of licence and permit fees paid to various Government departments was a hinderance.

Speaking at a meeting organised by the Zimbabwe Tourism Authority (ZTA) to engage the industry to find common ground on how to develop domestic tourism, tour operators and hoteliers said they had extended discounts of up to 90 percent on their services and want the Government to do likewise.

The operators and hoteliers want licences paid to ZimParks, Civil Aviation Authority of Zimbabwe, Environmental Management Agency, Forestry Commission, local authorities and Ministry of Transport among others to be slashed and that these payments be spread across 12 months as opposed to upfront.

They argued that the prevailing market conditions were different as business was constrained hence the need to revise some of the activities including rates. The fees include licences and fees charged on activities done by tourists.

The industry players said they were compiling a list of requests to be presented to Environment, Climate, Tourism and Hospitality Industry Minister, Nqobizitha Mangaliso Ndlovu, through the Tourism Business Council of Zimbabwe (TBCZ).

“We believe the industry has done the best in making sure that it is safe to receive guests. The industry has reduced rates by between 10 and 90 percent of their normal charges in order to promote domestic tourism,” said TBCZ representative, Mrs Barbara Murasiranwa.

“However, the area that remains a thorn in the flesh are charges by our Government and quasi-Government institutions for various licences, permits, leases, rentals and fees.

“We are requesting for a 50 percent discount in all the fees and also a payment plan to be granted to all tourism players so that the burden could be spread over a year instead of being requested upfront.”

Mrs Murasiranwa said the drive to promote regional and domestic tourism will not be fully achieved as long as operators were struggling with high statutory fees.

The cost burden has a risk of driving small and indigenous companies into liquidation, she said.

ZTA regional manager, Ms Tsikadzashe Mberi, implored operators and hoteliers to relook their pricing models to accommodate domestic clients.

She also challenged players in the tourism sector to take ownership of the domestic tourism campaign.

The Government had to come up with a $500 million Tourism Support Fund in guarantees for tourism sector players to access working capital in the form of loans from banks.

A total of $20 million was meant to provide seed capital to kick-start a Tourism Revolving Fund while Value Added Tax (VAT) payable by tourists for accommodation and visitor services was waived.

The fund is part of an $18 billion Economic Recovery and Stimulus Package by the Government aimed at reinvigorating the economy following slowdown induced by Covid-19.

Provision of critical liquidity support to all productive sectors, protecting employment through preventing and minimising Covid-19 induced lay-offs had become paramount. An offensive towards drumming up support for domestic tourism through the ‘ZimBHO! campaign and #IzimYami #Vakatsha’ whose target is to raise awareness among locals about the vast tourism and leisure facilities the country is endowed with, is being rolled out.

The campaign seeks to encourage a culture of holidaying among locals to boost domestic tourism, which had been overlooked over the years as the industry players focused on international tourism. —-hronicleo

Champion farmer says tobacco can be grown anywhere in Zim
NEWLY crowned 2020 national young champion farmer, Mr Pardon Mhuri, says the country can realise more gains if tobacco was grown in all parts of the country.

He dispels the notion that the golden leaf could only be grown successfully in the Mashonaland and Manicaland regions. Rather, Mr Mhuri suggests that tobacco seedling nurseries be set up in all provinces to ensure a thriving crop even in regions regarded as dry.

He said in an interview that Zimbabwe should decentralise tobacco production as part of an economic empowerment and recovery drive.

Farmers should just follow all necessary procedures in tobacco farming and positive yields could be realised, says the young farmer.

“Farmers need to follow agronomic advice and avoid cutting corners in order to achieve the best quality crops and high yields,” he said.

“A good tobacco crop is also largely dependent on the quality of the seedlings. Most tobacco farmers have a challenge nursing tobacco seedlings.”

Mr Mhuri said he will use his position as the national young champion farmer to advocate for establishment of seedling nurseries countrywide.

“If seedling nurseries can be established across the country it would ensure that farmers have access to good quality seedlings across the country.

“This will ensure farming of tobacco is decentralised to places that had been seen as being unable to sustain tobacco farming and in turn increase tobacco yields nationally,” he said.

Mr Mhuri said Zimbabwe’s young emerging farmers should take up tobacco farming as it was a lucrative enterprise.

“To facilitate the shift from small scale to commercial tobacco production, l established Mhuri Farming Private Limited, a private organisation that specialises in the growing of tobacco and tobacco seedlings, not just for its own use but for sale to other farmers as well,” he said.

In 2019, Mhuri Farming provided more than 600 small scale farmers with tobacco seedlings. For the 2020-2021 season, the young company intends to increase the number to 1 500 small scale growers.

Mr Mhuri said he was targeting to increase tobacco farming by 100 hectares and urged other youth farmers to follow suit.

He appealed to the Government to speed up the process of allocating land to the youth to ensure they also play a part in food production.

Mhuri Farming planted tobacco on 150 hectares in the last season and this year it targets growing the crop on 250 hectares.

“This is meant to play my part of fulfilling President Mnangagwa’s vision of an upper middle-income economy where the agriculture sector is productive.

“The Government has a role to play also by giving land to the youths as the land we are using is leased, which has setbacks on our growth,” he said.

Mr Mhuri has strong passion for farming and is keen to diversify his portfolio to cover a variety of crops.

He has already partnered with other young entrepreneurs to set up Deruka Foods (Pvt) Ltd, which supplies and distributes vegetables to different retail and fast-food chains and hotels in the country. —chronicle.c.zw