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Raban Masuka, Correspondent

Zimbabwe, a nation blessed with rich natural resources, diverse flora and fauna, qualified human capital and favourable climate conditions, stands at pivotal crossroads in its economic development journey.

With a population of approximately 16,5 million and a literacy rate of 92 percent, Zimbabwe has the potential to transform itself into a regional economic powerhouse.

The foundation for growth has been set through political will and the path to realising this potential lies in creativity, innovation, and strategic policy implementation.

Efforts by the Government in introducing Education 5.0 model are highly commendable. This has seen significant investment in innovation hubs, a shift in the right trajectory.

It is imperative to craft an education system that encourages entrepreneurship and innovation from an early age.

However, this must be complemented in primary and secondary education. While the Continuous Assessment Learning Activities (CALA) initiative had the theoretical understanding, implementation became difficult and time consuming to some parents who felt had been made students again.

Thus, Zimbabwe’s education system needs a radical shift from its colonial roots to one that fosters economic independence. The curriculum should not be entrenched in a model that conditions students to seek employment rather than create opportunities.

This is what I term the “1898 servitude model”, which has proved useless in Zimbabwe’s quest for development. Hence, Education 5.0 is a step in the right direction that needs further support financially and materially.

This must evolve to focus on nationalism, financial literacy, innovation and design thinking.

By integrating vocational training that matches industry needs, Zimbabwe can develop a workforce with the skills required for a self-sustaining economy.

The manufacturing sector in Zimbabwe, once the backbone of the economy, has seen a significant decline. To counter this, there is need for a paradigm shift in business models and an emphasis on new ways of doing business. Import substitution should be prioritised to reduce the outflow of foreign currency and to develop local industries.

Value chain mapping is increasingly becoming important to create new industries and products.

The National Development Strategy (NDS1) has identified 10 value chains that can potentially leapfrog Zimbabwe’s manufacturing capability. There is therefore need for funding, such as creation of a manufacturing bank that offers affordable, patient capital to sustain this sector.

According to the Zimbabwe National Statistics Agency (ZIMSTAT), Zimbabwe’s trade deficit stood at approximately $1,7 billion in 2022, with imports outweighing exports.

Encouraging local production through incentives for entrepreneurs and SMEs, reducing bureaucratic hurdles, and creating an environment conducive to business growth can revitalise the sector.

For instance, the exorbitant costs of factory licences and start up fees must be reconsidered to promote ease of doing business.

Infrastructure development has seen notable progress in recent years, especially in road networks and port facilities like the Beitbridge Border Post.

According to the Ministry of Transport and Infrastructural Development, over $1,5 billion has been invested in road rehabilitation projects since 2020.

However, the cost and complexity of cross-border trade remain barriers to Zimbabwe becoming a trade hub in the region.

The World Bank’s Ease of Doing Business report ranks Zimbabwe at 140 out of 190 countries, highlighting challenges in trading across borders.

The introduction of a “Single Window System” could streamline the process by consolidating all necessary permits and fees into a single application.

Automating this process through mobile applications would reduce time spent at borders by up to 60 percent, attracting more “efficiency-seeking” investments.

Energy remains a critical bottleneck for economic growth in Zimbabwe. With an energy mix currently dominated by thermal power (60 percent) and hydroelectric power generation (40 percent, facing challenges due to depleting water levels in Kariba, a strategic pivot is necessary.

The current installed capacity is approximately 2 700MW, but the actual generation is estimated at 1 400MW, resulting in blackouts.

NDS1 anticipates increasing generational capacity to 10 000MW (10GW) by 2030.

However, a clear roadmap to attaining this is key. It is imperative that the Integrated Results Based Management (IRBM) introduced by Government is actively followed.

Energy is a key enabler for the thriving mining, agriculture and anticipated manufacturing sector rebound. Studies suggest that the economic cost of power outages in Zimbabwe is equivalent to about 2 percent of GDP annually.

While solar and wind energy present viable options, the cost remains high compared to thermal power. Zimbabwe has an estimated 31 billion tonnes of coal deposits. This is about the 25th largest deposits globally.

We cannot downplay the value coal brings, and as a country we must sweat this asset given our challenges.

Zimbabwe could consider delaying, like India, full compliance with the Kyoto Protocol and investing in more thermal power stations, while developing technologies to capture and sequester greenhouse gases.

The Kyoto Protocol was an international agreement that called for industrialised nations to reduce their greenhouse gas (GHG) emissions significantly.

Singapore has implemented great technologies to sequester greenhouse gases. Zimbabwe, with its brain-trust can also develop catalysts that can be installed on the thermal power stations to remove the greenhouse gases.

For example, thermal power costs about $0,03 per kW, compared to solar at $0,08 per kW and hydro at $0,045 per kW.

Industries are currently getting power at $0,27/kW compared to farms which get cheaper power.

The same metrics can be applied to all industries to ensure production becomes cheaper. By leveraging these cost differences, Zimbabwe can ensure a steady supply of affordable power.

Simultaneously, exploiting the country’s solar irradiation potential through projects like the envisioned Kariba Floating Solar project could diversify the energy mix.

Strategic investments in renewable energy infrastructure and tapping into carbon credit monetisation can provide sustainable, cost-effective solutions.

Zimbabwe can also embrace sectors like technology, additive manufacturing, agro-processing, tourism, and renewable energy.

The global shift towards technology-driven economies highlights the need for Zimbabwe to invest in skills related to data science, artificial intelligence, and smart manufacturing.

Given its mineral wealth, Zimbabwe could play a significant role in the semiconductor industry, with potential benefits for local manufacturing.

The technology sector’s contribution to global GDP is growing rapidly, and Zimbabwe must position itself to benefit from this trend.

The growth of the semiconductor industry in countries like Indonesia and Bangladesh, where GDP grew by 5,17 percent and 5,24 percent in 2022 respectively, points to the transformative power of technology.

Additionally, the horticulture sector provides a viable path for economic diversification. Using models like the Hub and Spoke adopted by the Horticultural Development Council of Zimbabwe (HDC), smallholder farmers can improve their incomes through increased exports.

The horticulture sector, currently valued at US$77 million, has the potential to grow exponentially with focused investment.

Sectors such as citrus, blueberry, butternut, and sweet potato farming have shown promise for growth.

Economic growth is unattainable without strong institutions that ensure transparency, property rights, and reduced corruption.

Simplifying regulations and procedures for starting and running businesses, especially for local producers and SMEs, is critical. Government may also incentivise local production by reducing import dependency and creating policies that encourage manufacturing, agriculture, and tourism.

Reducing excessive bureaucratic processes and costs associated with formalising businesses, alongside creating a more conducive tax environment, would encourage the informal sector which accounts for over 60 percent of Zimbabwe’s economy to integrate into the formal economy, broadening the tax base and promoting sustainable growth.

Achieving sustainable economic growth in Zimbabwe requires a multifaceted approach involving education reform, infrastructure development, energy diversification, and robust institutional frameworks.

Collaboration between the Government, private sector, and civil society is essential to create a thriving economy that benefits everyone.

With strategic planning and execution, Zimbabwe can unlock its economic potential and chart a path towards inclusive prosperity.

Raban Masuka writes in his own capacity as an innovation specialist, intellectual property expert, business consultant, and strategic planning professional with local and international experience. Feedback: [email protected] and Mobile: +263 772 812 636