Zimbabwe can turn around its economy if it can attract investment as well as clear its debts with multilateral lending institutions, the Macroeconomic and Financial Management Institute (MEFMI) has said. The organisation last Friday launched a book titled “Economic Management in a Hyperinflationary Environment: The Political Economy of Zimbabwe 1980-2008”, in collaboration with The African Capacity Building Foundation.Speaking at the book launch, MEFMI debt management programme director Raphael Otieno said the debt issue was preventing new investors in the country.
“Economic recovery is feasible. The only challenges are that we need to attract new investment and secondly address the debt problem.
“There are huge debt service arrears and investors worry about whether the government can sustain that and there is no money flowing into the country but if we can clear the debt, money will start flowing into the country,” he said.
Mr Otieno said the loan which the government expected to receive from the International Monetary Fund (IMF) in October could lead to more investment.
“It is important that IMF funding starts flowing in because it will send a signal to investors and international financiers,” he said.
MEFMI executive director Caleb Fundanga said the country could achieve economic recovery especially given its rich natural resources.
“The potential in this country is tremendous. It is one of the richest countries in terms of minerals. If you look at the issue of diamonds we are of talking of billions and you look at how much we are talking about in debt arrears. It is about time we make these resources work for the people because the wealth is there,” he said.
One of the authors of the book Sehliselo Mpofu said there were many lessons to be learned from the hyperinflationary era that Zimbabwe went through. – New Ziana.