US acknowledges progress in Zim economic reforms
THE US has said it acknowledges the progress being made by the Second Republic in transforming the economy and has expressed desire to work with local businesses in facilitating trade and supplies mainly in agriculture and mining.
Zimbabwe’s economy is on a recovery trajectory and, for the first time in many years, the country is clawing back to solid growth, having exhibited higher resilience to recent unforeseen shocks, including the latest outbreak of Covid-19.
The strong economic recovery has also been attributed to the comprehensive economic reforms being undertaken by the President Mnangagwa-led Government.
According to official estimates, the country’s Gross Domestic Product (GDP) growth, a major economic indicator, is expected to hit 7,8 percent by the end of this year, slightly above earlier estimates of 7,4 percent.
This will be mainly driven by the recovery in the agriculture sector, which recorded a bumper harvest in the last season, and is set to grow by 34 percent.
There has also been a steady performance of the mining sector, coupled with noticeable recovery in the manufacturing sector, whose capacity utilisation rose from 36 percent in 2019 to 47 percent last year and 54 percent in the second quarter of 2021.
In an interview last Friday during his visit to Bulawayo where he also attended the just ended Zimbabwe International Trade Fair (ZITF), US Acting Ambassador to Zimbabwe, Mr Thomas Hastings, said Zimbabwe was making positive economic progress.
“Government has made significant effort in economic reforms and it has also indicated that it will make more changes.
“The key sectors of the Zimbabwe economy are mining, agriculture and tourism. All these three sectors provide opportunities for US investment,” he said.
“Our primary exports to Zimbabwe are currently equipment and machinery that can be used in the agriculture and mining sectors but there is still room to grow.”
The top American official said a total of US$84 million was registered in trade value between the two countries in 2020 with Zimbabwean exports clocking US$47 million.
“That definitely shows that there is a trade relationship but US$84 million is relatively low so there is a possibility of greater trade between to the two countries,” said Mr Hastings.
In order to promote US investment in Zimbabwe, he said a two-day virtual trade fair was hosted in May in partnership with the Department of Congress. The US companies with interest in investing in Zimbabwe participated.
Mr Hastings said the fair created a good opportunity for US companies to know more about investment opportunities in the country. As an embassy he said they will continue to facilitate investment in Zimbabwe.
Mr Hastings also hailed the country for successfully holding the ZITF especially in the wake of the Covid-19 pandemic saying the way in which Covid-19 regulations were diligently enforced during the fair was impressive.
He said the ZITF presented an opportunity for him to learn more about economic opportunities that the country can offer to foreign investors and companies wishing to trade with the country.
“It was good to see participation of many companies, countries and my fellow ambassadors from other countries at the ZITF,” said Mr Hastings.
“There is general broad support of increased trade and investment between Zimbabwe and the rest of the world including the US.
“My visit to ZITF was an opportune moment to hear from Government officials, the Ministry of Industry and Commerce, Zimbabwe Development Agency (ZIDA) and learn more about the steps which Government has taken to improve the business climate and make Zimbabwe a more attractive destination for foreign investment including US investment,” he said. — The Chronicle
