ZIMBABWE has failed to attain targets set in the Medium Term Plan (MTP) as the economy continues to underperform, particularly in agriculture, Economic Planning and Investment Promotion Minister Tapiwa Mashakada has said.
He told the Parliamentary Portfolio Committee on Budget and Finance yesterday that set targets had not been achieved in the first year of the plan, which runs until 2015.
Launched in July last year, the MTP set a number of targets across major economic sectors, all aimed at improving the performance of the economy.
Minister Mashakada told the committee, chaired by Goromonzi North legislator Paddy Zhanda, that the Zimbabwean economy had reached a “plateau”.
“We need a serious injection in our economy by way of foreign direct investment. We need a lot of support in terms of global overseas financing,” he said.
Minister Mashakada said implementation of the MTP had primarily been affected by lack of funding, policy discord and delays in approving tenders by the State Procurement Board.
Lack of implementation of Public Private Partnerships was also affecting performance, especially on infrastructure projects.
Implementation of the MTP requires over US$9 billion with the resultant effect of the failure to finance plans affecting economic growth targets.
While the MTP targets an economic growth rate of 7,8 percent this year, Government has said there will be a slowdown to around 5,6 percent. The MTP envisages an average growth rate of 7,1 percent up to 2015.
“The slowdown in economic performance in 2012 is largely due to the poor performance of the agriculture sector,” Minister Mashakada said, adding that the mining sector was, however, improving its performance.
He added that the manufacturing sector was also failing to improve its performance due to a number of factors revolving around lack of cheap finance.
The minister said only inflation targets of between 4 and 6 percent during the plan period were likely to be achieved.
He noted that while economic performance was in the positive in 2011 and 2012, no new jobs had been created.
“The growth that has been registered has been jobless and that is a challenge. We need to create a growth that creates jobs,” he said.
He said the Government was failing to improve living conditions as “poverty is on the increase”.
“We are fortunate that we dollarised and everything fell into place, but it’s very clear that where we are now is not sustainable,” he said. — Business Reporter-New Ziana.