PRIME Minister Morgan Tsvangirai says the inclusive government has failed to stimulate economic growth, blaming the mishap on poor economic policies by Zanu PF and non-remittance of diamond revenue to Treasury.Report by Tatenda Chitagu, Staff Reporter
Addressing business leaders and civic society representatives in Masvingo last Friday, Tsvangirai said while the Government of National Unity forged between himself and President Robert Mugabe had its successes, it has had its fair share of shortcomings.
The inclusive government was formed almost four years ago.
“We have fallen short of instituting economic growth, much as the inflation rate fell drastically when the inclusive government was formed,” Tsvangirai said.
“We were supposed to stimulate economic growth, but that did not happen because of bad economic policies by one of the coalition partner, which you all know, as well as low foreign direct investment (FDI) and foreign currency earnings.”
Tsvangirai blamed Zanu PF’s controversial indigenisation policy as scaring away investors, stunting the country’s economy.
“Ever since (Indigenisation minister Saviour) Kasukuwere started the indigenisation drive, nobody has been putting money to invest in Zimbabwe. Wherever I travel with the begging bowl, investors are sceptical about the indigenisation policy because they ask the logic of investing in Zimbabwe when their companies are going to be appropriated,” Tsvangirai said.
“Instead, we have to create opportunities so that we can revive industries, instead of leaving a few parasitic elites enjoying economic benefits. Let us increase FDIs and create investment opportunities.”
In August the government convened a high level economic forum to try and come up with solutions to ills affecting the economy.
At the forum, Finance minister Tendai Biti highlighted that low gross capital formation; huge external debt; lack of industrial competitiveness; weak regional integration; high levels of poverty and the absence of a unified vision for the country continued to hinder economic growth.
Biti underscored the need for the country to leverage on its abundant human capital, natural resources, geographical location, demographic distribution, information and communication technologies, fairly decent infrastructure and globalisation.