The IMF seizes the mood Zim

Sunday mail

Victoria Ruzvidzo

The International Monetary Fund is not exactly the most generous of institutions in terms of forecasting economic growth for some of its members, and Zimbabwe has always emerged a victim of its seemingly tough stance.

But the story has changed. The Bretton Woods institution gave this economy a boost and when you see it revising upwards its previous economic growth forecasts, you know that indeed things are happening.

Last week, this august body projected projections for Zimbabwe at 6%! This is great news from all points of view. That’s just slightly lower than our own projections as a country of 7.8%.

“Economic activity picks up in 2021, with real GDP growth of around 6%, reflecting record agricultural production, increased mining and energy production, dynamic construction and manufacturing activity and increased investment in infrastructure, ”the IMF said in its conclusion of the Article VI Mission.

He adds: “The IMF mission notes the authorities’ significant efforts to contain inflationary pressures. In this regard, contained budget deficits and reserve currency growth, higher monetary policy rates and greater flexibility of the RBZ auction exchange rate, are policy steps in the right direction ”.

Such a vote of confidence from the IMF will surely bode well for this country, especially in view of the Covid-19 pandemic which has affected social and economic activities.

This forecast is even more impressive in a context of economic regression or stagnation in other economies.

It is easy to discern the drivers of this projected growth – increased agricultural production, increased use of manufacturing capacity, improved energy supply, high mining production, rebound.
construction activity, better availability and stability of foreign currencies and coherent monetary and fiscal policies and interventions

This economy is booming and has proven itself in the face of formidable challenges.

The National Development Strategy 1 set the tone for an inclusive and growth-oriented economy.

African economies have been hit hard by Covid-19, fragile as most were before the pandemic.

The common man can see and feel positive aspects in the economy as inflation recedes, except for the slight increase in the last month, better availability of foreign currency, assured food security and infrastructural developments. .

These are tangible benefits in an economy on an upward trajectory.

Monetary and fiscal authorities have been proactive in proposing policies, mechanisms and interventions.

However, growth forecasts should not put us to sleep. There is still a lot of work to be done.

It’s an auspicious start by all means, but it invites us to work even harder.

We must not only maintain this growth, but improve it.

Farming can still do better, despite its impressive rebound and there were lessons to be learned over the past season. Thus, the sector can produce more locally.

Our imports are still at a worrying level, manufacturing needs to source inputs, mining is promising and more businesses and partnerships are being considered while the outlook for tourism has improved dramatically as the pandemic appears to be receding, which eased the travel restrictions.

Stability and availability of currencies is still a problem. The central bank intervened to settle the unpaid bills on the auction market.

Import substitution must be resolved to allow foreign currencies to be funneled into compelling priorities such as electricity, fuel and medicines.

Inflation is falling, which is positive, but lower numbers are achievable.

Construction resumes and infrastructure developments are expected to continue.

These roads which are already made are a joy to drive. We hear that those who travel the Harare / Beitbridge route spend a moment of their lives on the smoothly rehabilitated route. This increases confidence and stimulates economic activity.

Ease of doing business is a constant theme and there have been significant improvements. We’ve climbed the rankings, but clearly it’s a work in progress. Business registrations, for example, still take extended periods of time, but we know the government is working to improve all of this.

So we celebrate the very laudable milestones.

There are always competing priorities in any economy.

We have the fundamentals in place, we have synchronized fiscal and monetary policies.

This should only be the beginning. We can increase the growth of our economy.

All on deck, in our respective spheres.

We appreciate the government’s efforts because it did not happen on its own.

It often takes restrictive hours to change the economic trajectory, underestimated in the authorities. But we did well as an economy.

We have the agriculture, manufacturing, mining, tourism and service sectors that underpin this growth.

It needs to be propped up and requires everyone to bring their A-game.

We also address structural issues.

We have clear, consistent and predictable policies.

The Zimbabwe we want is taking shape and we have work to do.

Zimbabwe’s economy looks set to achieve the 7.8% growth forecast for this year. The annual average of 5% as envisaged by NDS1 should be exceeded in the coming years.

Power supplies have been a sore spot in recent weeks as zesa Holdings executive chairman Dr Sydney Gata allayed fears.

“I want to assure the government and our country that we are not looking for strategic answers to the challenges that I have highlighted. We have strategic responses to current emergencies and our contribution to NDS1.

“By 2024, we want to absorb the 300,000 customers waiting for connections. The farm load has increased by 53 percent over the last year, mainly in the winter wheat irrigations and we want to reliably meet this and what we see as a continued expansion in this sector, ”said Dr. Gata.

This week alone, Afreximbank signed deals worth $ 78 million with three local banks to support the energy and production sectors of the economy.

This can only contribute to the positive growth trajectory that the economy has taken.

These agreements will help zesa import electricity and increase its production capacity.

The performance of key sectors of the economy, including agriculture, mining, manufacturing and tourism, depends on the availability of electricity. Therefore, the agreements signed on the sidelines of the intra-African trade fair held in Durban, South Africa last week will have a phenomenal impact on the economy. .

Aside from increasing electricity supply, Zimbabwe is said to have garnered more deals in the millions and the IATF.

The atmosphere is definitely there and who would blame the IMF for having seized it. The extremely conservative institution had no choice but to marvel at the evolution of this economy.

We also need to take note of some concerns and advice given on areas the economy needs to work on to realize its full potential.

In God I believe!

Twitter ID: @ VictoriaRuzvid2; E-mail: [email protected]; [email protected]; WhatsApp number: 0772 129 972.

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