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Bond notes

Victoria Ruzvidzo Business Focus —
The last few weeks have witnessed important developments in the economy which portend positive growth in 2017 if we build on them.

The onset of the rains, coming as they do, against the background of positive forecast of above average rains by the Meteorological Services Department, promises better harvests in the 2016/2017 agricultural season.

The effects of El Nino-drought and other man-made deficiencies have had a debilitating effect on the sector and hence the economy, yielding negative growth figures.

Government has had to declare a state of disaster to allow food aid and other forms of assistance, as thousands go hungry owing to the drought.

But we are hopeful that the fields will soon be green again and the sector will be one of the pillars on which economic recovery will be anchored on. Agriculture has performed dismally in recent years and the importance of developing irrigation systems cannot be overemphasised.

The manufacturing sector, which gets 60 percent of its inputs from agriculture, has also begun to show signs of life, churning out good news of lately as firms report increased capacity utilisation which has grown from 34,3 percent to 47,4 percent on the back of increased production by local firms after Government imposed import The figures are according to the Confederation of Zimbabwe Industries manufacturing survey whose results we released last week.

This means more local products are becoming available on the market. This will in the medium to long term result in more jobs.

A viable manufacturing sector will also promote value additions hence Zimbabwe becomes more competitive on the global markets. Increased export receipts have the potential to solve liquidity challenges and other attendant constraints.

The fact that gold exports are set to earn $1 billion in exports this year is another positive statistic that should augur well for the economy. Increased revenues from gold paint a blooming picture for the mining sector in general.

This sector has potential to become Zimbabwe’s major economic driver. An interesting development is that although a number of big gold mines have either scaled down or closed shop altogether, output has increased.

The small miners have stepped in to produce significant figures. Between January and October, the small scale artisanal miners brought in 7,5 tonnes of gold, compared to 9,8 tonnes by the big producers.

The entrance of women onto the scene in a more aggressive way is also set to change the economy’s complexion going into 2017. In recent weeks a number of symposiums and workshops have been held to ensure women play their part in the economy.

It is only logical that the participation of the women, who account for 52 percent of the population, will yield better results for the economy.

Today the Confederation of Zimbabwe Industries and the United Nations Entity for Gender Equality and the Empowerment of Women(UN Women) will host a dialogue on Women in the economy. This is expected to give impetus to the gender discourse on development.

A fortnight ago Minister of Women’s Affairs, Gender and Community Development Mrs Nyasha Chikwinya said the much-awaited women’s bank will be launched before the year ends. This will deal effectively with the issue of capital which has been a major constraint for women entrepreneurs in particular.

Another positive development is the recent restoration of Zimbabwe as a full and legitimate member of the International Monetary Fund family after a long spell in the cold. This development is set to improve the Zimbabwean brand and help attracts funding and investment.

However, the country will still need to pay its dues to the World Bank, African Development Bank and others lenders it owes to consolidate its position as a candidate for new funds and foreign direct investment.

Furthermore, much more is expected from the Diaspora as more funds are remitted home while the central bank engages this constituency in a more intimate way.

The much-awaited bonds notes are finally here after months of speculation, trepidation and excitement somewhat. The jury is still out on their effects on the economy.

Its early days yet but there have been fears that the bond notes would ignite a free-fall in the economy while others remain resolute Zimbabwe needed these. Time will tell but the eternal optimist remains hopeful that the bond notes are more of a solution than a headache.

Indeed the economy is saddled with immense challenges that need to be addressed as the year draws to a close and the new year appears, but there are pockets of positivity that the economy needs to ride on and produce better results. It is always easier to view the glass as half full instead of half empty.

Of course many have said that the economy has largely been put on hold as politics take centre stage and we all agree that this stance has had a debilitating effect on the economy.

But 2017 may well be about the economy as the ruling party Zanu-PF will obviously want to deliver so that it retains power while the opposition will use any challenges in the economy to convince the electorate into voting otherwise.

This is the politics of the economy that could see a marked improvement in Zimbabwe’s economic well-being as the clock ticks towards 2018.

Improving the standards of living through right-pricing of goods and services, dealing with the cash crunch, creating new jobs and consolidating the entrepreneurial culture are some initiatives that will be expected by the electorate.

Zimbabweans are an enterprising lot and the hardly run out of ways to go round solutions. This has been a major trait that has helped keep the economy afloat and we hope this zeal will combine well with initiatives by Government to improve the economy.

Efforts to resuscitate Ziscosteel and other collapsed and collapsing and yet critical entities in the economy is most welcome. Efforts to endear external partners and former enemies should also yield desired results. Zimbabwe is hugely endowed and should take every opportunity to maximise on this to take the economy to the next level.

There is so much that could go wrong in this economy and yet there is so much more that could come right once we apply our minds to it as Zimbabweans and stakeholders to this southern African state.

In God I Trust!

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