TSP: The rapid modernisation, industrialisation of provincial economies

Vince Musewe Towards Vision 2030
THE Rapid Modernisation and Industrialisation of Provincial Economies is key to achieving Vision 2030, in creating  inclusive growth, creating local employment opportunities, eradicating poverty and ensuring that provincial economies are the ultimate beneficiaries of their factor endowments.

The Transitional Stabilisation Programme (TSP) talks about the empowerment of provinces and envisages empowered provinces and states the following:

  1. While Zimbabwe remains a unitary State, the implementation of the country’s development programmes will allow for devolution to achieve fair and balanced development, spearheaded by Provincial Councils which will initiate development programmes for their respective provinces, consistent with Section 264 of the Constitution.
  2. The Transitional Stabilisation Programme outlines targeted programmes to champion economic development across the provinces.
  3. This represents a new Governance dispensation where decentralisation becomes a key feature and strategy for fair and just governance across its four dimensions, namely administrative, political, fiscal and market.
  4. To this end, the Civil Service Commission will facilitate the transfer of the requisite functions and establish the structures and systems that will enable all provinces to plan and implement their economic growth and development using their factor endowments.

It is therefore critical that our provinces are geared to taking full responsibility of their own developmental objectives given their unique factor endowments, needs, population profiles and geography.

In my opinion, the key success factors must include:

First and foremost, provinces need to know the extent of the key assets which they have, be it land, minerals, culture or human capital. This requires a thorough research and documentation of what each of our provinces has been endowed with. Partnership with local academic institutions as encouraged by the President will play an important role. The collection and dissemination of key statistical information, for example, will have to be done by each province so that we are able to measure progress.

Agriculture and mining resources in each province must be fully exploited to the benefit of locals. The allocation of land assets, for example, must also prioritise local ownership. So should the issue of mineral claims and rights. We must stop extraction of wealth from our provinces without locals benefiting. Tourism is also a quick win sector in most of our provinces and so the upgrade and marketing of tourism assets including cultural tourism must not be outsourced to Harare.

Second, provinces need to create an awareness of the investment opportunities per sector which are within. In Manicaland, for example, we published an “Invest in Manicaland” magazine which will be done annually showcasing to potential investors, both local and international, the investment opportunities which exist in that province. Added to this, province must have their own “one-stop investment centres” where potential investors can engage. This will require building or recruiting a local skills base and having the administrative capacities to deal with investors at provincial level. Investors must be continually encouraged to partner with locals.

Third, provinces need a comprehensive developmental plan. Each province must have a deliberately compiled developmental plan which looks at the key sectors and how each sector is going to be developed over the next five, 10 or 20 years. Core to this plan must be industrialisation through value addition and beneficiation. When we industrialise we use our primary products to produce or manufacture processed or finished goods and we create high income sustainable jobs.

Fourth, each province must have job creation strategies. Creating local jobs boosts local economic activity and local disposable incomes and further creates other downstream opportunities thus creating inclusive growth. Many a time our provinces award local contracts or source goods from elsewhere thus limiting local economic growth opportunities. This also includes big business who continue to starve local provincial economies of opportunities.

Fifth, each province must have a clear poverty alleviation strategy which is unique and tailor-made to its needs. We have, in the past, left issue of poverty and food security to development partners and NGOs or to national government.

Next it is critical that each province achieves youth and women empowerment. We need organised youth and women groups in every province and they must take responsibility for their own economic emancipation and not wait for Harare to determine progress. Access to information and capital will be key.

Access to world-class education and health also needs to be localised. We must see major hospitals being established in every province while education institutions must also be available at local level. To date, we have done well with universities but we need more learning institutions and research institutions in each province. Developmental research, innovation hubs, incubators, technical colleges are critical ingredients for future growth.

Having said the above, nothing will come of all this unless each province is able to attract its own developmental and investment capital. Provincial developmental and industrialisation funds are going to be critical. This will require provinces to go out there and attract own investors. They will require provinces to package themselves as viable investment destinations to attract private capital.

The devolution of economic power to provinces must also see same devolution of decision-making power within the private sector. My experience in Manicaland shows that most companies based there who have a head office in Harare hardly make critical decisions. Almost everything requires authority from Harare and they end up working like tuckshops. All critical functions are performed in Harare while locals are hardly empowered. We will therefore need a culture change in the private sector as well if devolution is to be meaningful.

Of course, the business sector within each province, which includes large and small business, will have a central role to play to achieve provincial developmental objectives. The various business associations and chambers at provincial level must therefore be self-organised and autonomous being able to exploit new opportunities without the need to continually refer elsewhere. A partnership between provincial government and the private sector at provincial level is important so that all stakeholders work towards collective goals of local social and economic development.

Leadership by Ministers of State at provincial level remains a factor which will determine whether each province is going to meet its developmental objectives and contribute towards national GDP and Vision 2030. The make-up of Provincial Councils and their experience, attitude and paradigm will also play an important role. The President has made is very clear that the Second Republic is more about economic development and not politics. It will therefore be most interesting to see which provinces rise to the occasion.

Vince Musewe is an economist and developmental policy advisor. You may contact him directly on [email protected]

 

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