‘Private sector ready to work for durable stability’

THE private sector says it is ready to work with the Government to exploit opportunities ushered in by the prevailing stable economic environment to drive sustainable economic growth.

Zimbabwe National Chamber of Commerce (ZNCC) chief executive officer Christopher Mugaga said the private sector was continuously engaging the Government to ensure its policies succeed.

“The business community, certainly, is excited by what is happening. The fact that the prices of basic commodities are also cooling down is a clear indication of the private sector’s positive response to the results emanating from Government interventions,” he said.

Recently, the private sector had a near run-in with the Government over their suspected role in the volatility that manifested in massive increases in prices despite the sound economic fundamentals.

However, the Government considers private sector-led economic growth a key pillar for the country to attain all future growth targets, including Vision 2030, by which time Zimbabwe is expected to be an upper-middle-income economy.

While there have been intermittent periods of volatility, pro-business policies of the Second Republic have positively impacted companies and the economy at large.

This includes driving growth in capacity utilisation of 56,52 percent from about 36,3 percent in 2021, 80 percent growth in local product stock, increased import substitution, growing investments in new machinery and factory equipment, production of high-quality products, and growth in manufactured exports.

Economist Tinevimbo Shava said, “The potential for the industry to grow is there and what is just needed is an adaptation to alternative sources of power to hedge against any shocks otherwise the statistics show industry is in the right direction in terms of growth.”

In May authorities rolled out a series of policy measures to tame rapid depreciation of the local currency. The interventions included measures to stabilise foreign exchange rate and increase demand for the local currency.

The Reserve Bank of Zimbabwe director for research, Dr Nebson Mupunga, predicted that the exchange rate was expected to stabilise in the medium to long term after recent monetary policy interventions.

“We are exploring ways of determining the equilibrium position of our currency against the US dollar and once that is achieved will continue supporting our local unit (Zimbabwe dollar) through creating demand for it,” he said.

Confederation of Zimbabwe Industries (CZI) economics committee chairman, Jimmy Pscillos said business was ready to support the Government in ensuring the ongoing reforms are sustained.

“The measures that were announced in May this year have worked. We have seen the exchange rate stabilising, the question is how to sustain this.

“The first point is that we need to stick to what has been working, we need to keep liquidity very controlled, live within our means, and ensure that there is zero money creation in the economy, and that is what the measures have achieved.

“We have seen the exchange rate strengthening and what is important is a stable exchange rate and keeping it for an extended period,” said Mr Pscillos.

Industrialist Abel Sauka noted, “Commitment to production entirely depends on the ability by firms to focus on relevant systems and innovative mechanisms that add value to products and enhance ability by firms to accrue more profits.”-herald