Zimpapers Logo

ANOTHER year is coming to an end and Zimbabweans from all walks of life will take time off from their busy schedules to join family and friends to celebrate the Christmas and New Year holidays. It is the season to be jolly after an eventful year in which there were contrasting fortunes in the socio-economic and political spheres of the nation. We tip our hats off to those Zimbabweans who held their own, persevered and kept their heads above the water despite the challenging economic environment.

Following the 2013 harmonised elections in which Zanu-PF swept to a landslide victory, the country has made steady strides in its bid to grow the economy in spite of the many impediments stacked against it. Ruinous sanctions continue to stall efforts to get the economy back on track.

While the European Union has made significant moves to remove the embargo it imposed on Zimbabwe in 2002, the United States has adopted a hardline stance. This has stymied Zimbabwe’s diamond trade since New York hosts the world centre of the international financial system. The country has, however, seen its tobacco sales surge with China leading as the biggest buyer of the golden leaf.

The increase in output has been attributed to small scale farmers particularly those who benefited from the land reform programme.

There is still a challenge to increase output of other crops such as maize, cotton, soya bean, sorghum and millet. A lot of work needs to be done this farming season to achieve better yields. The manufacturing sector faces peculiar challenges chief among which is the need for capital injection to retool.

Most companies were caught napping and found themselves overtaken by technological advancements. Their machinery is obsolete and they urgently need to buy modern equipment and adopt current ways of production. We are glad that the government has prioritised the manufacturing industry and is anchoring the recovery of the economy on it.

Already, there are positive signs of progress with companies such as United Refineries leading the way and competing on an equal footing with imports. Consumers just need to be encouraged to buy local products as they are just as good if not better than imported goods.

Reports that Merlin will reopen in January with an initial workforce of 100 is a major development in the revival of Bulawayo industries and we applaud everyone behind the initiative. The government needs to continue finding ways of protecting local industries and assisting them to stay afloat in the face of intense competition from cheap imports.

The mining sector has been the pillar of the economy with diamonds contributing the bulk of the receipts to Treasury. With alluvial gems running out at Chiadzwa and capital-intensive underground mining now a priority, the government needs to attract investors. Tourism has been on the rebound and the sector is expected to continue on its upward trajectory in 2015.

With the ruling Zanu-PF party having successfully held its 6th National People’s Congress and subsequently reshuffled Cabinet, Zimbabweans expect 2015 to be a year where the economy will take centre stage. Already, Finance and Economic Development Minister Patrick Chinamasa has indicated that the bloated civil service (554,000 workers) will be trimmed to cut the huge wage bill that is threatening capital projects.

As it is the government workers wage bill accounts for 81 percent of the budget and this is unsustainable. In the same vein, we commend the government for managing to pay its workers throughout the year and even affording to give them a bonus which will be paid before Christmas. This shows that it has the welfare of its employees at heart despite the tight fiscal operating environment.

We believe other companies that have been posting marginal profits can afford to pay a 13th cheque to their workers as a token of appreciation for their toiling during the course of the year. It’s the least they can do to motivate their employees ahead of what would be a defining year in 2015.

Zimbabwe stands on the threshold of a major change in fortunes and all sectors of the economy should contribute to the overall turnaround of the country. Unity of purpose will be key to unlocking the country’s economic potential.