By
Bernard Bwoni
The
country has been going through complex political and economic challenges due to
a number of factors. The government of Zimbabwe has remained optimistic and has
taken positive steps and reforms to stimulate the economy. Following
re-election in 2013 the government launched the Zimbabwe Agenda for
Socio-Economic Transformation (Zim-Asset) economic blueprint which is a results-based
management economic blue-print with the aim of increasing and improving quality
of government expenditure, increasing productivity and competitiveness and
improving the business environment as a whole. The economic blueprint is
anchored on four key clusters aimed at empowering Zimbabweans through economic
growth. The four clusters are Food Security and Nutrition, Social Services and
Poverty Eradication, Infrastructure and Utilities and Value Addition and
Beneficiation. The economic blue-print was launched in October 2013 and will be
implemented up to December 2018.
It is
now a year into the implementation of the five year economic blueprint and
analysis of projected growth targets will be based on the key success factors
as identified in the economic blueprint. The initial signs indicate that some
clusters are registering some initial successes. The
Food Security and Nutrition cluster has started recording initial successes and
this is because of a recovering agricultural sector which has seen cereal
production reaching levels near enough for national self-sufficiency. One of
the key success factor (KSF) of the blue-print is the ‘deliberate implementation of supportive policies in key productive
economic sectors as agriculture, mining, manufacturing and tourism’ and in
line with this KSF the Presidential Well-Wishers Input Scheme for the 2014/15
season has now been set to cover all food crops. Agriculture is crucial to the success of
Zim-Asset as it aids economic transformation, enhances food security and helps
eradicate poverty. Thus it important to note that the agriculture sector has also been revived
and this is on the background of the land reform programme in Zimbabwe. It is
not only cereal production where quick wins have been gained but cash crops
such as tobacco production levels have been nearing the 236 million kilograms
mark attained a year before the land reform.
There has been
notable quick wins in the two clusters of Food Security & Nutrition and
Value Addition & Beneficiation. Another KSF is ‘value addition and
beneficiation in productive sectors such as mining, agriculture and
manufacturing’ and more recently there has been a lot of emphasis on the value
addition and beneficiation. The government has been putting emphasis on value
addition in sectors such as mining and agriculture with crucial steps being
taken to ensure that mining companies build refineries in areas where they are
mining minerals as platinum. This is very important to the success of Zim-Asset
as this ensures that the country is not just exporting raw platinum to be
refined externally which deprives the country of revenue from platinum group
metals that come as by-products of the refined matte. Value addition and
beneficiation ensures that precious metals such as diamonds and platinum will
be processed domestically. Value
addition ensures that jobs stay in the country and not exported together with
the raw matte.
Another key success factor of the economic blue-print is the ‘rehabilitation and retooling of the
infrastructure’ and in the Infrastructures and Utilities Cluster there have
been evidence of actual projects linked to the cluster taking shape. There are
a number of power projects that have been commissioned as the Kariba Extension
power project and the Gwayi power project both which will address the power shortages
that affect the country. There has been evidence of extensive road-works and dualisation
of the country's major highways.
The
Zimbabwean economic growth has been affected by liquidity challenge and emotions
are understandably running high. For the ordinary man and woman on the street
the immediate concern is ‘bread and butter issues’ and the argument that is
often and always put forward is that ‘blue-prints do not put food on the table’.
That in itself is a fair argument but for food to get to the table government
has to come up with sound economic policies and hence why the government has
launched Zim-Asset.
Two
other key success factors are ‘political
commitment and leadership and strong collaborative partnerships among
government agencies, private sector and other stakeholders’. The economic
sanctions have had a significant impact on the Zimbabwe economy and per the
above KSF the government has tried re-engaging the IMF and World Bank and the country’s
poor credit rating has negatively impacted the ability to access new lines of
credit. According to the government ZimAsset is meant as a measure to improve
the investment climate and come up with sanction-busting strategies to enable
full exploitation and value addition to the country’s abundant natural
resources. When broken down to its bare components ZimAsset is a positive
strategy that can only be judged following full implementation. The 129 page
blue-print sets measurable and achievable sector outcomes and the sector
outputs are point specific for every key result area. It addresses key areas
which if effectively implemented will see the economy taking off as evidenced
in some clusters. The blue-print is pin-pointing the specific areas of the
economy which will redress lack of value addition which has always proved a
stumbling block in the country’s economic revival. However a strategy without
effective implementation will remain but just a strategy and what is needed is
commitment and consistency on the part of the government and all Zimbabweans
alike. Implementation via a result-based management system with clear
organisational visions and goals which are translated into a results framework
of outcomes, outputs, strategies and resources if effectively done will yield
results.
A
result-based management agenda has always proved effective in most
organisational settings and incorporating it into a national economic
blue-print makes sense. The system aims to focus on actual results as opposed
to just activities and outputs. There are clearly defined expected results,
regular evaluation and taking timely corrective action. There are countries
such as Korea, Australia, Uganda and Malaysia that have implemented
result-based management systems with varying levels of success. The four clusters which are Food Security, Poverty
Eradication, Infrastructure and Utilities, and Value Addition and Beneficiation
which are identified within ZimAsset are critical to the Zimbabwean economic
revival. That is all things being equal of course. The system requires an
effective senior and middle management structure to ensure vision and focus is
cascade down organizational structure. If effectively implemented ZimAsset is
Zimbabwe’s own home-grown initiative that can transform the country
economically.
The passing of the
Sovereign Wealth Fund of Zimbabwe Bill in September 2014 which will see the setting up of the country’s
sovereign wealth fund is crucial to Zim-Asset. The Sovereign Fund as per the
economic blue-print will ensure that wealth is generated for future generations
and safeguard the country’s economy against external macroeconomic shocks. Of
course considerations need to be made regards funding options for the
blue-print as a whole. There is need for more collaboration with other
stakeholders and enhancing the human capital drive.
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