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The next three days should be defining in terms of the broader economic roadmap this year as business executives and policymakers meet in Nyanga under the CEO Roundtable banner to deliberate on issues economic.
This is one of the major highlights on Zimbabwe’s calendar and we all hope it will live up to its billing. Such a high concentration of the who’s who in industry cannot afford to make hollow statements with no impact on the economy.
There has been so much hype around the Roundtable particularly in view of its theme: “Towards a US$100 Billion Economy by 2030”.
Over the past few months I have been pleasantly surprised to note that most experts and fundis in the economy have caught onto the US$100 billion economy drive and have expressed confidence that this is achievable.
There is a strong convergence of the mind that Zimbabwe has the wherewithal to attain a US$100 billion economy over the next 19 years, a fact that is obviously leaning heavily on more action rather than mere wishful thinking.
There are critical issues at hand that we anticipate the Roundtable will deal with. Some of them include:
l The liquidity challenges
l Increasing capacity utilisation,
l Power supplies,
l Affordable long-term finance,
l Policy consistency,
l Indigenisation,
l Productivity;
l Pricing,
l Coherence between Government and private sector
l Imports
The economy is beset with serious financial challenges that have hamstrung critical programmes and projects. Since dollarisation in 2009, the economy has faced challenges that have been compounded by inadequate lines of credit and somewhat depressed exports.
The Government has also found the going tough given a shrinking tax base.
Although banks have, over the past few months, begun to lend to the private sector, the funds are either too little or the loan conditions too restrictive.
There is, therefore, need for the CEOs Roundtable to find ways to circumvent the financing challenges.
The current scenario has seen companies failing to import raw materials or engage in any expansion projects.
With a clear and present danger, many firms may be forced to continue downsizing operations to survive.
Zimbabwe needs to secure lines of credit while the local market should come up with long-term finance facilities.
Banks, in this instance, are required to be more innovative and to step up efforts to meet market demands in terms of funding. I want to agree with the central bank governor when he said in his statement that banks are still not doing enough to meet the huge appetite for cash.
Of course, we also note that the banks themselves can only stretch so far but they need to be more proficient to come up with financial solutions that will enable the economy to sustain the growth mode.
Capacity utilisation remains very low at an average 40 percent, an issue that needs a closer look as we make steps towards the US$100 billion economy.
One major drawback is that of power supplies. This story has been told over and over but we hope business leaders and Government officials attending the conference will not continue to moan about the erratic supplies but will come up with something concrete to help ameliorate the situation.
Zesa needs material and intellectual help, something that the roundtable will have in abundance given the line-up of delegates and presenters.
Indigenisation is one topic that has become very sensitive but it is one that cannot be avoided at such gatherings.
This policy will obviously play an important role as Zimbabwe takes steps towards the US$100 billion economy.
There are a lot of issues around this topic that will need to be dealt with to remove any misconceptions around it. Government has already said it will give ear to constructive submissions regarding the issue hence the need for CEOs to express their thoughts and get clarifications on any part of the policy they may not be too conversant with.
At the end of the day the implementation of the indigenisation policy requires both Government and industry to operate on the same wavelength.
Policy consistency is a critical ingredient in fostering economic growth. Although there has been a marked improvement in this regard, there are still pockets that need clarity and clear focus in terms of policy application.
Industry will need the comfort of knowing that goalposts are not changed willy-nilly while foreign investors, whose interests are usually long term in nature, will require clear and consistent guidelines when considering an investment destination.
There are other economic constraints that are sector-specific which the roundtable should zero-in on. Solutions will need to be sought for the challenges bedevilling mining, agriculture, tourism and other sectors of the economy as each of these jostle to become the major economic driver.
A whole host of issues to do with the economy will need to be handled.
Of course, political issues such as elections will naturally crop up as these have a huge bearing on any economic targets. We wait to see what will come out of this. Vice President Mujuru will be there and so will Prime Minister Morgan Tsvangirai, among other senior Government officials.
Furthermore, it is critical for Government and industry to work in harmony and the CEO Roundtable presents the platform for frank discussions that will lead to better working relations between the parties.
Of course, such platforms as the TNF and the NECF are meant to achieve that but if the US$100 billion economy target is to be achieved there is great need for stakeholders to read from the same page.
I was really surprised to hear from one good source of mine that Zimbabwe has fared badly on the Doing Business ratings because some local company chief executives involved in the rankings bad-mouth the country.
In fact, they actually determine the country’s positioning and unashamedly sensationalise issues.
This can only happen when the Government and stakeholders such as the private sector are operating incongruently.
Zimbabwe can ill-afford this hence the need for stakeholders to sit down and map the way forward as a unit.
Of course, there are bound to be differences but ways to resolve these without harming the economy are always available and more beneficial to all of us.
Therefore, much is expected from the CEOs Roundtable and the three-day deliberations should see Zimbabwe take a giant leap towards the US$100 billion economy.
In God I Trust!
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