Zimbabwe leads, Sub-Sahara follows

Zimbabwe leads, Sub-Sahara follows
Published: 17 May 2017 (551 Views)
Zimbabwe's economy has maintained a downward toll over the past decade. However, a glimpse of hope beams on the country's economy evidenced by the recent 2% positive prediction by the International Monetary Fund (IMF) in a recent survey.

While detractors concentrate on negatives prevailing in the country, the country has been mopping up strategies, adaptations and policies to revamp its economy, a discourse yet to be implemented by other African nations.

According to IMF's Regional Economic Outlook report, titled Restarting the Growth Engine; growth in the region will barely deliver any per capita gains lest African governments implement strong and urgent policy reforms to boost growth, something which the Zimbabwean government has already done.

Under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) programme, most of the grand submissions by IMF think tanks are already in motion.

The region's growth is said to have slowed sharply in 2016, averaging 1.4%, the lowest in two decades as about two-thirds of the countries in the region which account for 83% of the region's Gross Domestic Product (GDP) slowed down. Sub-Saharan population growth averaged 2.7 %, according to a 2015 World Bank estimate.

As such, Africa is supposed to adopt new business models and policies which promote import substitution, limit raw material exportation, formalizing the informal sector, ultimately leading to economic growth.

According to IMF, the delay in implementing critical adjustment policies will lead to higher public debts, creating uncertainty, holding back investment, and risks generating deeper difficulties for most African economies in the future.

All these inferences to import substitutions and adopting the informal sector are something Zimbabwe has gone through and already perfect tuned through Zim-Asset, a leaf for sub-Saharan Africa to pluck from.

Commenting on the same report, Nigerian Minister of Finance, Kemi Adeosun acknowledged Nigeria being one of the several countries in Sub-Saharan Africa to be hard hit by an economic crisis in 2016.

"With the anticipated African economic rebound in 2017, there was need for the region to adopt a new business model driven by import substitution strategies to localize production, create jobs and achieve sustainable growth," she said.

Given the size of the informal sector and its contribution to employment and household income in the region, Mrs Adeosun called for improvement in policies in the sector to realize its full potentials.

The business model of extracting and exporting raw commodities with little or no value addition should be jettisoned for a broad based growth model is well catered for under the value addition and beneficiation cluster, something which Nigeria intends to emulate.

Recent improvements in commodity prices, provides welcome breathing space for most African economies. However, it will not be sufficient to address the existing imbalances in resource-intensive countries.

Among other strategies to be implemented, the report acknowledges that while Africa's economy is expected to grow by 2.6% this year, it is still not enough to keep up with the continent's growing population, hence the need to implement measures to espouse economies.

The report also acknowledged the growing importance of the informal sector as a safety net providing employment and income in Africa.

"The informal economy is an important component of most economies in the region, contributing between 25 and 65% of the Gross Domestic Product (GDP) and between 30 and 90% of total nonagricultural employment," read the report.

"International experience suggests that the informal economy in sub-Saharan Africa is likely to remain large for many years to come, presenting both opportunities and challenges for policymakers," it added.

Countries like Senegal and Kenya are expected to continue to experience growth rates higher than 6 percent while Zimbabwe is forecast to grow at 2%. In a previous outlook published last October, the IMF had forecast a contraction of 2, 5% in Zimbabwe's economy, clearly, they were wrong.  

The IMF also acknowledged economic rebound in agricultural production in Zimbabwe, something which has been driving the country's economy.  Zimbabwe seems to be at the fore front of innovations, while others follow.



- Rungano Dzikira

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Chiwenga fails to issue termination letters to nurses

by Staff reporter | 20 April 2018 | 137 Views

Suspected thief bashed to death

by Staff reporter | 20 April 2018 | 121 Views

Fired nurses in panic mode

by Staff reporter | 20 April 2018 | 139 Views

Mukanya was home sick

by Staff reporter | 20 April 2018 | 96 Views

WhatsApp messages lead to divorce

by Staff reporter | 20 April 2018 | 118 Views

Traffic cop implicates bosses in fake fines book scam

by Staff reporter | 20 April 2018 | 132 Views

41 senior cops transferred

by Staff reporter | 20 April 2018 | 116 Views

Chamisa says military must be in the barracks

by Staff reporter | 20 April 2018 | 112 Views

Zanu-PF politburo meets to avert implosion

by Staff reporter | 20 April 2018 | 116 Views

'Mugabe remains our hero'

by Staf reporter | 20 April 2018 | 86 Views

Chiwenga fail to issue termination letters to nurses

by Staff reporter | 20 April 2018 | 84 Views

Mugabe humiliates Mukonori?

by Staff reporter | 20 April 2018 | 129 Views

Tsvangirai's death could not have come at a worse time

by Staff reporter | 20 April 2018 | 99 Views

Boris Johnson hosts Sibusiso Moyo for roundtable talks

by Agencies | 20 April 2018 | 91 Views

Biti sees potential $100 billion economy

by Bloomberg | 20 April 2018 | 88 Views

Zimbabwe opposition can win 'if it overwhelms polls'

by Carien Du Plessis | 20 April 2018 | 114 Views

Bigwigs corruption continues unabated

by Staff reporter | 20 April 2018 | 95 Views

Mnangagwa administration priorities warped

by Staff reporter | 20 April 2018 | 67 Views

Chinamasa, Gumbo self-enrichment plan exposed

by Staff reporter | 20 April 2018 | 101 Views

Zimbabwe denied Commonwealth observer status

by Staff reporter | 20 April 2018 | 78 Views

Mnangagwa stops funding Grace Mugabe's private school

by Staff reporter | 20 April 2018 | 85 Views

James Maridadi pens open letter to VP Constantine Chiwenga

by James Maridadi | 20 April 2018 | 125 Views

Mujuru diamond mine battle erupts

by Staff reporter | 20 April 2018 | 65 Views

MDC-T activist assaulted, kidnapped by soldiers

by Simbarashe Sithole | 20 April 2018 | 144 Views

MDC leader Welshman Ncube blasts govt for firing nurses

by Stephen Jakes | 20 April 2018 | 119 Views

Wenger leaves Arsenal

by Staf reporter | 20 April 2018 | 155 Views

Chiwenga to finish off 'running coward' Mnangagwa's presidential term?

by Wilson Mahlafuna Sibanda & Khohliso Maqhoba | 20 April 2018 | 304 Views

Government response to Nurses' strike is wrong

by Dumisani Mpofu | 20 April 2018 | 91 Views

'The rabbit killed my 8 children, husband'

by Staff reporter | 20 April 2018 | 183 Views

Abortion teacher fired

by Staff reporter | 20 April 2018 | 137 Views

Father, son in fight over 'prostitute'

by Staff reporter | 20 April 2018 | 147 Views

Chiyangwa exposed in 'Fifa lie' storm

by Staff reporter | 20 April 2018 | 121 Views

Women in street fight over footie star

by Staff reporter | 20 April 2018 | 161 Views

'Hands off married man' - Magistrate warns smallhouse

by Staf reporter | 20 April 2018 | 138 Views