The voluntary return of Non Resident Zimbabweans (NRZ) must be preceded by the creation of the Zimbabwe Economic Opportunity Fund (ZEOF) aimed at providing financial assistance to the NRZ wishing to relocate and invest in Zimbabwe. A series of Conferences on NRZ return and Zimbabwe Reconstruction to solicit ideas, funds and other pledges from the international community partners would be a starting point.
The Zimbabwe Government would be expected to partly contribute financial resources into this fund. The Fund should be structured as a revolving facility offering loans and equity to the NRZ who wish to set up businesses in Zimbabwe. The Fund should be geared towards job creation and increasing Economic productivity.
The Zimbabwe Economic Opportunity Fund would be expected to act as a catalyst towards the stimulation of the rapid increase of real industrial production enterprises in Zimbabwe driven by NRZ.
Currently Zimbabwe’s production capacity is way below 40% and this is likely to remain the case if no serious effort is made to mobilize those sections of the Zimbabwean population who can provide that stimulus. When the GNU was formed there was misplaced optimism that donor floodgates will open and the country would be awash with donor funds. The honest truth is that donor money will not come and resolve the country’ economic situation without a credible plan by Zimbabweans with specific input from the NRZ.
Instead of haphazardly calling on donors and other international partners to pour money into Zimbabwe the creation of a Diaspora specific Economic Fund will create a credible and attractive vehicle to raise the funding needed to assist those who wish to return and invest in the country. There are a few underfunded programs which are offering around minimal assistance to those who voluntary return to Zimbabwe. The funds being offered whilst they can assist they fall far short of the real help that’s required to motivate and incentivize people to relocate. The creation of the Fund will provide a strong safety net which can be used by those who are considering to return to Zimbabwe and venture into self-employment.
Zimbabwe currently requires job creation which means the general call for the NRZ to return needs to be well thought out and ensure that those who return can assist in job creation. Zimbabwe’s unemployment rate is currently above 70% ,therefore it doesn’t make much sense to call for the return of more workers in the absence of clear plans and initiatives to create new jobs to absorb the returnees. he way past this is to create a medium to long term plan which targets which sections of the NRZ should return first and what are the incentives and assistance structures in place.
The creation of the Zimbabwe Economic Opportunity Fund should be an on-going effort to ensure the development of the small and medium enterprises in various sectors of the Zimbabwean economy. Amongst the NRZ there are Academics, Bankers, Lawyers, Doctors, Engineers, Architects and other professionals who are ready and prepared to start new businesses and re-invest in Zimbabwe once proper funding and support infrastructure is in place. These are the critical businesses that are required as they will create employment and boost productivity.
The ZEOF must aim to provide medium to long term funding as well as correct long observed inadequacies in the provision of medium to long-term financing to small and medium scale industrial enterprises. The proposed Diaspora fund must place special emphasis attracting NRZ who can focus on the manufacturing, mining, tourism sectors and services areas which Zimbabwe already possess some comparative advantages
This article appears as courtesy of GMRI Capital ( http://www.gmricapital.com ) prepared for 3MG MEDIA
Gilbert Muponda is a Founder and CEO of GMRI Capital ( http://www.gmricapital.com ). He can be reached at;
Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda
Twitter ; http://twitter.com/gmricapital
Facebook ; http://www.facebook.com/muponda
No comments:
Post a Comment