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The Minister of Sport, Arts and Culture Cde Andrew Langa, Senior Minister of State in the President’s Office Cde Simon Khaya Moyo, Provincial Chairman for Zanu-PF Bulawayo Province Professor Callistus Ndlovu and the Minister of Agriculture, Mechanisation and Irrigation Development Cde Joseph Made take notes during a cabinet ministers and Zanu-PF provincial co-ordinating committee members meeting at Elangeni Training Centre in Bulawayo yesterday

Prosper Ndlovu Business Editor
THE government is considering embracing internal devaluation as a solution to tackle the rising poverty datum line and has engaged scholars to unpack the concept as it seeks a panacea to the economic challenges. Internal devaluation entails a situation in which a country seeks to regain competitiveness through lowering wage costs and increasing productivity without reducing the value of the exchange rate.

In his keynote address during the Zanu-PF Matabeleland regional meeting at Elangeni Training Centre in Bulawayo yesterday, Senior Minister of State and Zanu-PF national chairman Cde Simon Khaya Moyo said Zimbabwe’s economic challenges required innovative solutions towards achieving Zim-Asset goals.
He noted the increase in the cost of living amid poor earnings and loss of jobs saying salary increases were not always the best remedy.

Cde Khaya Moyo said addressing the economic challenges characterised by a PDL hovering around $540 through internal devaluation was at the heart of the government’s economic blueprint.

“We have not heard from our scholars and thinkers on how, for example, we can reduce the PDL at the same time as we are trying to raise salaries – a multi-pronged approach,” he said.

“Zim-Asset encourages economic activities that result in a lower cost of doing business and also lowering production costs across entire value chains. This in turn allows for the passing on of the resultant savings in order to influence a downward correction of the PDL.”

A downward correction of the PDL through lower cost of goods, Cde Khaya Moyo said, rather than only raising salaries, was sustainable and in line with Zim-Asset aspirations.

“I challenge our scholars to study this phenomenon called internal devaluation, especially as there is no opportunity of stimulating economic growth via fiscal devaluation during this time of using currencies that are not ours,” he added.

Cde Khaya Moyo urged economists to steer debate around the internal devaluation topic and link it to everyday work and economic activities in the country.
The goal of sustainable socio-economic transformation described in Zim-Asset, he said, seeks to yield conditions in which communities have more disposable incomes to spend on Zimbabwean manufactured goods, thereby rejuvenating local firms.

Several cabinet ministers among them Cde Patrick Chinamasa (Finance) Joseph Made (Agriculture), Dzikamai Mavhaire and Francis Nhema (Youth Development) took the opportunity to explain their respective ministries programmes towards achieving Zim-Asset goals particularly in areas involving Matabeleland provinces.

The ministers affirmed their commitment to steer economic growth and said the country’s future was bright if all sectors played their roles accordingly.
During the plenary sessions, party cadres quizzed ministers on what they were doing to foster development in the region and the country at large.
Cde Jabulani Phetshu from Matabeleland South demanded clarity on the revival of ailing Bulawayo companies and rehabilitation of roads.

Cde Judith Ncube from Bulawayo said cabinet ministers should be sincere and stop lying to people and the President about unfulfilled projects.
Bulawayo war veterans’ provincial chair Cde Japhet Phuthi said investment programmes should ensure locals get jobs first.

Zimbabwean envoy to Egypt Cde Aaron Maboyi Ncube urged more action than mere talk shows, saying a lot has been said but not done regarding Matabeleland projects.

Cde Themba Mathuthu said the government should provide transport support for farmers during grain delivering and inputs.
Senator Tambudzani Mohadi urged speedy action towards broadening of Beitbridge/ Harare highway to curb accidents that continue to claim lives.
She also said measures should be taken to weed out the poisonous plant that is spreading in Matabeleland South.

Cde Molly Mpofu said empowerment programmes should capacitate party leaders and complained that political leaders from Matabeleland cannot command respect because they were poor and have nothing to show for their loyalty to the party.

The party members reiterated the need to revamp CSC as a strategic engine in the livestock industry in the region and urged continued consultation to achieve desired goals.