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PRESIDENT Robert Mugabe set the tone for the country’s economic recovery with a forward looking and investor friendly State of the Nation address on Tuesday. ddressing a joint sitting of the National Assembly and Senate in Harare, the President outlined a 10-point plan that cuts across all economic enablers and crucially, clearly articulates the path the country will take to put it on the right trajectory.

Cde Mugabe’s speech focused primarily on the economy which he said had recorded modest growth due to the impact of drought on the agricultural sector and given that Zimbabwe’s economy is agro-based, this had an adverse effect on the overall performance of the economy. But, the President said, Zimbabwe was poised for major economic take off anchored on its economic blue-print ZimAsset which requires massive capital injection and implementation. Mega deals signed with China in various sectors of the economy would help in this regard and the government was also pursuing both domestic and external alternative financing for key ZimAsset programmes such as infrastructural development. The 10-point plan would see agriculture and the agro-processing value chain revitalised while beneficiation and value addition to agricultural and mining resource endowments would be advanced.

The plan will also focus on infrastructure development, particularly in key energy, water, transport and ICT sectors, unlocking the potential of small to medium enterprises, encouraging private sector investment and restoring and building confidence and stability in the financial services sector. The government also plans to promote joint ventures and public-private partnerships to boost the role and performance of State-owned companies, modernise labour laws, pursue an anti-corruption thrust and accelerate the setting up of Special Economic Zones to attract investment. Most of the projects the President outlined are already work in progress with the refurbishment of the Hwange and Kariba power stations among the key ones in the energy sector. The modernising of labour laws is also underway with the Labour Amendment Bill set to be signed into law anytime now while negotiations continue within the framework of the Tripartite Negotiating Forum on further amendments.

The ease of doing business is being addressed and the government is strengthening re-engagement with the international community to access cheap financing and attract much needed Foreign Direct Investment. The President admitted as much in his speech. He said: “Let me reiterate that government recognises the importance of strengthening re-engagement with the international community.

“Indeed, current re-engagement efforts with both bilateral and multilateral partners, including the African Development Bank, the Afro-Asian Bank and the World Bank under various initiatives, should see improvement of relations and the opening up of new financing avenues, for long overdue reforms and development cooperation.“In order to buttress the positive economic gains recorded to date, government will implement policies that will improve the business environment and promote and attract both domestic and foreign investment. In this regard, it is our expectation that once the National Diaspora Policy is finalised, it should spur our people in the Diaspora to take advantage of the many investment opportunities existing in the economy”.

The government also intends to overhaul the Companies Act and other legislation that hinder the ease of doing business. Unsound procurement practices slowing down economic growth would be addressed through a new Procurement Bill that would be tabled in Parliament before year end. It will emphasise devolution of power to award tenders to procuring entities such as government ministries, parastatals and local authorities. In line with this, the State Procurement Board would be transformed into a non-executive procurement authority. Ten parastatals are also set to be reformed beginning with the Grain Marketing Board and the Cold Storage Company.

This will be done through public-private partnerships to boost their performance. The government is also addressing corporate governance issues in state enterprises to ensure they are attractive to private investors. We feel these measures, among others, will go a long way in boosting the performance of the economy by attracting much needed investment.

President Mugabe has been consistent in calling for investor friendly policies. In his speech during commemorations of Heroes’ Day in Harare earlier this month, Cde Mugabe said the government was reviewing investor laws with a view to amending them. His State of the Nation address buttressed that point and reiterated the government’s commitment to attracting investors.We hope the international community and foreign investors will be buoyed by the President’s speech which in simple terms says, “Zimbabwe is ready for business”. The 10-point plan clearly lays out the path the country is taking going forward and all arms of government should implement it robustly.

It’s time to put shoulders to wheel and turn around the country’s economy. We are glad the President has set the tone by coming up with a sound plan to steer the nation forward.