Govt fails to stimulate economic growth

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.

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14 Comments

  1. Did Tsvangirai expect he coalition with two parties with disparate policies would stimulate economic growth? Was he not aware of Zanupf policies before agreeing to the coalition? The country is going towards election and Tsvangirai is trying to con voters by distancing himself from the mess when he entered into he coalition with his eyes wide open.

    1. Sono, which school did you attend ??? Did you even write form 2 ?? Don’t comment in english and fail to spell it. Use your mother language than writing “shonglish”..

      1. @Titus Foe
        My mother language is English – My father was Zulu but my mother was English. I have a Masters In English from Cambridge University. Let me repeat incase you are blind you idiot –
        Did Tsvangirai expect he coalition with two parties with disparate policies would stimulate economic growth? Was he not aware of Zanupf policies before agreeing to the coalition? The country is going towards election and Tsvangirai is trying to con voters by distancing himself from the mess when he entered into he coalition with his eyes wide open.

        1. @Titus Foe – the first sentence should read, “Did Tsvangirai expect THE coalition with 2 parties with disparate policies would stimulate economic growth?” Any person with any brains can see I just missed the “t” you stupid idiot.

  2. sono i beg to disagree the coalition was not exactly what it became after signing. there is violation of many agreements they signed to.in other words tsvangirai was ambushed to sign that coalition and mbada yakazozviratidza iye apinda kare.so to hell with the inclusive gvnt. we want a new gvnt

    1. @gabarinocheka – stop defending the indefensible – everyone except Tsvangirai knew what the Zanupf policies were before the so-called inclusive government. How could he expect any good to come out of a hybrid government? The country is about to go into an election and Tsvangirai is trying to fool voters than MDC-T was not responsible for the failure of the coalition to deliver. How could they deliver when one party is pulling to the right the other to the left? What did he hope to achieve by joining a coalition which was dysfunctional before it was sworn in? He was warned by arrogantly ignored the warnings. Voters must not give him and his party another chance to lie.

  3. None remittance of sufficient diamond revenue is the main contributary factor stifling economic groth in zimbabwe

  4. what i understand Tsvangirai joined Mugabe when some of the policies has already been efected by Zanu pf government so there is no need for us to blame him for what he did not do. Ladies and gentleman let us be fair enough our indiginization policy 51% i think its too much how can some be in business to benefit less .Remember one of the main objective of ivesting into business is to make profit its not just like ivesting to become a busy man.its food for thought for us Zimbabweans look at the rate which big companies a closing .I mean big companies something needs to be done as far as such decisions are destroying our economy.i think primister was right when he points fingers to the problem .let us not hate someone for telling the truth because it is the truth that set us free.

  5. Mr sono its ubearable for me and people like me to even imagine what this country would have been like if the pm had not decided to do what he and his party decided to do in september 2008.for all i know i would by now have totally forgotten the taste of bread in my mouth.my kid could have long forgotten about school at grade 1 level,my 58 year old mother could have long left her bynow worthless primary school teaching job.my younger siblings now struggling through college could by now be some babymaking machines for some worthless soul back in the RESERVES.most people around me could by now be involved in somekind of criminal and/or immoral activity.im sure all hope would have been lost by now.And the summary:SOMALIA!!?

    1. @Tate’s Own – The economic revival which happened after 2008 to bring sanity was not due to the MDC-T joining the coalition – just before the 2008 election Acting Finance Minister Chinamasa had been mulling over the OFFICIAL introduction of use of multi-currencies which civil society was already ILLEGALLY using multi-currencies (on the black market). It was just coincidence that MDC-T took over the Ministry of Finance just when use of multi-currencies was being introduced officially. Zanupf wasn’t sure it was going to work out but fortunately it did work out. MDC-T want to claim credit for bringing a semblance of sanity which was going to happen anyway with or without the coalition government.

      1. Sono the Acting Minister of Finance Chinamasa introduced a $US budget in 2009 he did not mull it, and civil servants were given vouchers denominated in US$ he also announced the introduction of the toll gate system. The concept was then referred to a dual currency regime. Biti is getting credit for a system he found already operating, what he did was to adjust the budget anticipating increased revenue flows from taxes and donors. He later revised the budget to ChInamasa’s budget after failing to secure the donor funds.

      2. admire musingarabwi

        Well said Sono. It is easy sometimes for people to end up believing a lie if it is repeated over and over again. The MDCs did not bring any tangible economic stability, it was a case of replacing a worthless currency with hard currencies. The sole ZANU (PF) government had started the change over and one wonders how such a blatant lie can be sold to the masses and the MDCs get undue credit for doing nothing at all. The MDCs have no policies of their own to talk of, except to say ‘Mugabe must go’.

      3. see Sono, Zanu pf was never sure it would work (like you rightly said) but MDC-T was sure it would work. it also helped calm the economy and brought about a high degree of stability to planning and pricing. Then there was this call of wanting to reintroduce the ZIM DOLLAR after Zanu -pf “wins” the elections, so sick. MDC-T’s coaliton with Zanu- pf in GVT has also helped prepared the MDC-T as a party to the way GVT works according to the laid down rules and regulations that govern its functions. so you see SONOt clever, they, MDC-T will not be in confusion when they take over by end of next elections.

  6. Its easy for people on the sidelines to down play what the guy on the ground has done and archived.Its also easy for people that have been pulled out of dire straits to brag and say the guy that pulled them out didnt do much after all.its in the human nature and its understandable hence in shona they have a qoute that goes”Chinoita chidoko chapfuura”.

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