UK report tips ED to revive economy

PRESIDENT Emmerson Mnangagwa could turnaround the country’s economy and may deliver sufficient economic gains in the next few months, a new report by a United Kingdom-based business intelligence consultancy firm, Alaco Limited, has revealed.

BY MTHANDAZO NYONI

In the Alaco Insight Report: Key players in Zimbabwe Speak of Economic Hopes, the consultancy firm said Mnangagwa would fix the country’s economy, judging by his partial repeal of the Indigenisation and Economic Empowerment Act and pledge to compensate and reintegrate white farmers who lost their livelihoods during the land reform programme.

Alaco Limited is a business intelligence consultancy based in the UK.

The consultancy conducted interviews with Zimbabwean officials in business, industry and farming and all were optimistic that Mnangagwa would turn around the country’s economic fortunes.

Commercial Farmers’ Union of Zimbabwe president Peter Steyl said he has been encouraged by Mnangagwa’s offer of compensation to white farmers — currently being calculated — and plans to reintegrate them into the Zimbabwean agricultural sector, the backbone of the economy.

“For every job created on the farms, at least seven jobs are created in the value chain,” he said.

While it was early days, Steyl said the message he was getting is “that farming will be down to people who can farm and that (land) won’t be handed out on a patronage or colour basis. I do see a more integrated agricultural system going forward.”
Zimbabwe-South Africa Forum president Anele Ndlovu said his members were already looking for foreign partners and “gunning for big things” in the mining, energy and infrastructure sectors, as well as targeting stakes in public enterprises.

He said the diaspora business community was excited about the changes taking place in the country but are also wary of potential obstacles.

Association for Business in Zimbabwe chief executive, Victor Nyoni said Mnangagwa has a lot of work to do.

“The economy has been destroyed. Unemployment is around 90%, industrial capacity is operating at below 50% and most of the companies in Zimbabwe are using archaic machinery and require retooling,” he said.


“We never want to see (Indigenisation and Economic Empowerment Act) again in our economy,” Nyoni said, pointing out that it “scared away” investors.

Nyoni said the President has spoken on the need to improve the ease of doing business in the country and identify other pieces of legislation that are causing companies problems.

“Ministers have been consulting us on what it is we want to see changed in the context of business. We are struggling as we speak. We are even unable to pay for imported raw materials because of the lack of foreign currency.”

He said liquidity would begin to improve once the economy showed signs of recovery and the country receives lines of credit and foreign direct investment.

Confederation of Zimbabwe Industries president, Sifelani Jabangwe, said despite what the economy has been through, certain fundamentals were fairly positive.

Mnangagwa was sworn into office as President in November through a military-assisted transition which ousted Robert Mugabe from power after 37 years at the helm.

Mnangagwa has promised to undertake reforms, saying Zimbabwe is open for business.

11 Comments

  1. Comment…we hav to talk of democracy first . no one is going to come to invest in zim .vanhu ava mazimbavha

    1. @Kennedy Kunaka kwezvimwe kushata kwezvimwe. Enemies of progress do not wants to hear positives news about Zimbabwe. They always thrive on the suffering of the massess to justify their existence ,which benefits them through donor funding. This article is simple highlighting positive changes in progress. You have to give it to him, we have seen a lot of changes and also bear in mind that we can’t have an avhaul change over night it’s a process and so far we are in the right direction. I have seen political parties campaigning freely in zim and other political leaders commenting very negative about ED and they havent been arrested. This is party of democracy .

  2. Kenny. I suggest that we be progressive in order to move forward. From my perception, efforts are being made to bring ,mbavha to book. Zvichanaka chete, humbavha huchapera. For now, I think we should furnish law enforcement agents like ZACC with all the information pertaining to humbavha hwacho muuone kuti hadzipere here mbavha munyika. Information like who did what, where, when and from where to get documentary or any other forms of evidence will be appreciated.

    1. Umkhonto ka Shaka

      Mnagagwa is culprit no 1, chiwenka is culprit no 2, perence shiri is culprit no 4 and obese is culprit no5. ZACC stand up and act on these individuals for dirty hands.

  3. Comment…Kennedy what democracy is tht shut up mhani iwe

    1. democracy is letting kennedy voice his opinions without being told to shut up. he has a right to air them though you may not agree with him. zany pf mentality must go with mugabe

  4. if there are plans to rejoin the Commonwealth (as much as I view that to be neocolonialism/ a continuation of the British Empire), our first priority should be on marketing this country as an inhabitable alternative for their nationals. Otherwise gogo vaya vachatikama kunge mombe.

  5. Zimbabwe is still a member of the Commonwealth. (Suspended, but still a member)

  6. An intriguing discussion is worth comment. I believe that you simply should really write far more on this subject, it might not be a taboo topic but generally individuals aren’t sufficient to speak on such topics. Towards the subsequent. Cheers

  7. Some of us will never be emotional, ED is on the right track and his policies are encouraging.

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