Editorial Comment: Infrastructure rehab crucial to economic recovery

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Collapsing or a complete lack of infrastructure have been cited as some of the factors militating against economic recovery and growth. Investment in the economic enablers has dried up since 2000. Hamstrung by illegal sanctions that crippled the economy, the government’s internal capacity to maintain or build new infrastructure is next to zero. In the context of the embargo, support from quarters that traditionally funded such investment, which is typically long term and extremely costly, was halted.

The result has been a near collapse of roads, railways and rolling stock, energy generation and transmission infrastructure. Dams are getting fewer and smaller to meet demand of a growing population and hospitals need to be reequipped with contemporary machinery.

A modern economy cannot function on erratic power supplies or on a creaking railway system or in an environment that lacks reliable water supplies.
With this in mind, government identified infrastructural development and rehabilitation as one of its key priorities for economic recovery in the next five years as enunciated in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.

Pursuant to that, President Mugabe’s ongoing state visit to China is themed around seeking infrastructural support.
“We are largely looking at investment of an infrastructural nature and the focus is on energy, that is coal and thermal, hard communication by way of road networks, rail, locomotives,” said Presidential spokesman, Cde George Charamba at the weekend.

“We are also looking at areas to do with agriculture to take forward our programme of mechanisation. We are looking at strengthening the telecommunications sector, possibly broadcasting.”

Quashing reports by some sections of the private media who have been claiming that the visit was meant to ask for a $4 billion bailout, he said: “Our thrust is predominantly infrastructure and in this case we are working with the cluster of infrastructure. Variku expecter kuti tichauya nema billion ari munhava (those expecting us to bring billions) don’t know the strategic direction of Zimbabwe. We are looking at ourselves as the investors, we are looking at inward investment.”

No other country or financial institution under the sun has the capacity and willingness to provide the immense support that this economy requires to redevelop its infrastructure. Only China does and that country has led, not only in direct private sector investment into Zimbabwe, but also in terms of public isector nvestment here in various spheres of the economy.

While China, through the Exim Bank has made available $1 billion worth of preferential, concessionary and commercial loans to Zimbabwe in recent years, Europe and America have channeled measly amounts often into the hands of non-governmental organisations and opposition political parties to advance the West’s failing illegal regime change agenda.

Already, China is involved in huge infrastructural projects like the Kariba South Power Station and Victoria Falls International Airport expansion, and solar power installations and so on.  The investment to be unlocked by the President’s ongoing visit would add on to what is there.

The nuanced focus on one pillar of Zim Asset in President Mugabe’s visit is the correct one as an omnibus approach could have thinly spread our energies too much on too many objectives.

It is true that we need support for value addition and beneficiation, social services and poverty alleviation and food security but other avenues for support should be pursued for these pillars as time goes on.

The narrow focus on infrastructure is futuristic  as it offers a wide multiplier effect that we could shoot two, or three birds with one stone. Work on infrastructure creates jobs, enhances social services and helps fight poverty.  This means that by building infrastructure, which is one cluster, we would have gone some way in addressing targets under another cluster, that on social services and poverty eradication.

On Friday, the President declared that, judging by our bountiful harvest last season, we have done well in terms of meeting our targets for the Zim Asset pillar on food security and nutrition.  Again, we have to point out the wide-ranging impact of new investment in infrastructure. It creates job opportunities, as we have already stated, and an employed person should be able to buy food for themselves and thus improve their nutrition. Also, they are better able to buy inputs to grow their own crops, not necessarily to buy food from others. A well fed person is the one who can work as well.

So we are confident that the focus on infrastructure as a starting point is the correct one.  We can’t get all the money we want for everything at once.  The entire economy should be able to feel the positive stimulus that a working infrastructure engenders.

China has supported Zimbabwe a great deal over the past half century.  President Mugabe’s ongoing visit to China would be similarly fruitful.

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