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Victoria Ruzvidzo Business Focus
“Africa, and in particular Sub-Sahara Africa has much natural resources (42 percent of the world’s) and a young population (460 million under the age of 24); it needs to find a way to turn this potential into sustainable wealth for all inhabiting this continent,” reads a paper written by USB Executive Development chief executive Frik Landman quoted in PMR Africa issue.

“The so-called ‘Golden triangle’, that is, business, government and civil society allegedly has about 11 million managers.

“These managers on a daily basis deal with and make decisions about the rich natural endowments of this continent.

“The sum total of their effort currently delivers the poorest continent on the globe,” he adds.

USSB-Ed is an arm of the University of Stellenbosch in South Africa.

I found his statements to be so profound, so true and yet so sad about Africa.

How does a continent that accounts for close to half of the world’s natural resources be so poor, have so many wars and be afflicted by so many curable and incurable diseases?

How can a continent be so rich and yet so poor? What an oxymoron. This story about Africa is not new. It has been said over and over again but the status quo remains the same.

The continent is a endowed with immense natural, human, ecological, and economic diversity but still remains underdeveloped mainly because most African countries suffer corruption, civil unrest and other political and social upheavals that constrict progress.

Numerous development strategies have failed to yield the expected results and most believe the continent is doomed to perpetual poverty. But Africa has immense potential.

Before the global economic crisis, at least 40 of the 53 countries on the continent were experiencing an average of 5 percent annual GDP growth, with hope that such growth levels would impact the continent’s livelihood but, unfortunately that was not the case and the continent has been feeling the heat of global recession, further retarding progress.

The story of huge natural endowments and very little to show for it resonates with what is happening in Zimbabwe.

As we bemoan challenging economic conditions and declining standards of living, we do so in a country whose width and depth is full of natural resources.

High unemployment levels, food shortages, dwindling disposable incomes, poor health and education facilities, among other challenges, are the order of the day and yet all these would be foreign language were we exploiting the abundant resources at our disposal.

In fact, this country’s wide range of natural resources makes it one of the most sought after, yet one of the most challenged on the continent.

It is because of these huge resources that agriculture and mining are the major economic pillars. This country has at least 49 known mineral reserves, particularly in the rich belt along the Great Dyke. Much more is still to be discovered.

Furthermore, with such international attractions such as the Victoria Falls, Great Zimbabwe, Lake Kariba and extensive wild life, tourism has historically been a significant contributor to GDP and should do much better than is currently the case.

Another resource that can contribute to economic development is the human capital base that has seen many Zimbabweans occupying key positions in economies on the continent and the entire globe in general. This should work towards developing this economy and improve the standard of living.

A valid point raised by Mr Landman is that the sum total of the effort by 11 million managers in Sub-Saharan Africa delivers the poorest continent in the world. This is the reality.

Zimbabwe has thousands of such managers and fundis. What has been the sum total of their efforts? What have they delivered for Zimbabwe?

Is this resource going to waste or there is a weak point in the chain that needs to be attended to. They say a chain is as strong as its weakest link.

We need managers and academics that can help shape our economy and lead the way to a more prosperous nation.

Zimbabwe has considerable hydro-electric potential and plentiful coal deposits for thermal power stations.

This means less dependence on oil as an energy source than most other comparable countries. But what boggles the mind is that we still import 40 percent of electricity requirements, primarily from Mozambique.

We should instead be exporting power to countries surrounding us if we adequately exploited available resources.

Over the years, infrastructure has deteriorated, with the African Development Bank saying we need at least $14 billion for infrastructure. Of course there has been a marked improvement since the formalisation of dollarisation.

The funds required should be small change for a country as endowed as Zimbabwe. In fact the infrastructure would not be so battered if we made the most of the resources.
“Infrastructure development is for most governments a top priority as it offers a platform on which the economy functions.

“It is common knowledge that a stable macroeconomic environment is indeed only possible where there is peace, rule of law and stability in society.

“Such a society does not come about by itself. Managers with the necessary developed leadership abilities, with a well-developed character and maturity are required to shape and influence such an environment,” noted Landman.

I was reading this other day that Brazil has put in at least $11 billion into preparation for the impending 2014 Fifa World Cup. If such funds could be directed towards one month-long event, why then should the continent at large and Zimbabwe in particular struggle to fund socio-economic development given the natural resources at our disposal.

Indeed we need a scenario within which the public sector, private sector and civil society can formulate strategies that will turn the abundant resources at our disposal into wealth for all of us.

The wealth of a nation increases if resources are discovered and extracted to better the economy and consequently the lives of that location. Therefore, the economy needs to rid itself of impediments to the successful exploitation of resources.

Challenges such as liquidity constraints will be a thing of the past if we did our calculations right while employing sustainable strategies to make maximum use of the resources.

We owe it to ourselves and to posterity to transform Zimbabwe into the country that was in God’s mind as He created it.

Zimbabwe is rich, Africa is wealthy but let’s work on to route to achieving the potential that is within.

In God I trust!

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