Zimbabwe economic recovery requires a blueprint

Zimbabwe's economy has consistently shrunk since 2000, in an atmosphere of political turmoil, sanctions, capital flight ,corruption, mismanagement and brain drain. Various reasons have been given for the decline from sanctions to corruption . Zimbabwe currently has the lowest GDP real growth rate in an independent country and 3rd in total (behind Palestinian territories.)This is not an acceptable position for a promising nation such as Zimbabwe with all its natural resources and hard working people. Zimbabwe deserves more and can be more and can deliver more to its citizens .

Zimbabwe’s economic potential can not be reached by accident or by chance. There is need to properly identify key areas of the Economy which can be used to anchor the economic recovery effort . A hap hazard approach just calling for resumption of aid and other international forms of assistance is not sound policy in the absence of a clear national vision centered on key sectors of the economy.

The economy of Zimbabwe has been collapsing under the weight of economic mismanagement, resulting in 94% unemployment and spiraling hyperinflation. Zimbabwe’s economy poorly transitioned in recent years, deteriorating from one of Africa's strongest economies to the world's worst over a relatively short period. In light of that its important that all key players re-focus themselves in seeking to turn around the nations fortunes.

Zimbabwe Government spending is currently estimated to be close to 60% of GDP. This ratio is to high by any standard. Given that the GDP is still declining this means the ratio is deteriorating further if no urgent steps are taken .

Between 2000 and December 2007, the national economy contracted by as much as an estimated 45%; inflation vaulted to into millions, and there were persistent shortages of foreign exchange, local currency, fuel, medicine, and food. GDP per capita dropped by 40%, agricultural output dropped by 51% and industrial production dropped by 47%. All these statistics have a story to tell about where the country was headed and could still worsen if nothing comprehensive is done .There is a clear need to come up with a National Economic Vision which seeks to restore Zimbabwe as a leading economy in Southern Africa and Africa

As of February 2004 Zimbabwe's foreign debt repayments ceased, resulting in compulsory suspension from the International Monetary Fund (IMF). Early on Zimbabwe’s government promoted socialism or related policies, partially relying on international aid. Since this aid is no longer available there is need to find alternative sources of funding and investment. An opportunity exists for Zimbabwe to re-draw its economic model and rely on local and foreign based Zimbabweans to access and attract resources into the Economy .

Africa is the world's poorest inhabited continent despite holding some of the worlds largest mineral resource deposits. A key cause of this is lack of political will and absence of cohesive economic blue prints which consistently guide the nations. Most African nations including Zimbabwe have been adopting ad-hoc and haphazard policies to suit the day and the moment without proper institutional systems being developed to support and sustain such policies.

Important National Institutions such as National Investment Trust, Zimbabwe Investment Authority, Zimbabwe Stock Exchange, Zimtrade and others continue to take a back seat in the current economic revival effort .This clearly shows the lack of National Vision on the Economy. Whilst everyone is calling for the Economy to recover there is no-one laying out a blue print or road map to co-ordinate these various Government bodies to take ownership of the Economic recovery

much of Africa has stagnated and even regressed in terms of foreign trade, investment, per capita income, and other economic growth measures.

Many international investors including sovereign wealth funds are gaining increasing interest in emerging modernizing African economies, especially as Africa continues to maintain high economic growth despite current global economic recession. This presents a unique opportunity for Zimbabwe given its infrastructure and educated labor force



Gilbert Muponda is an Entrepreneur based in Canada. He is CEO and Founder of GMRI CAPITAL . He can be reached at;

Email: gilbert@gilbertmuponda.com Skype ID: gilbert.Muponda

Twitter ; http://twitter.com/gmricapital

Phone: 1-416-841-5542