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Prosper Ndlovu, Business Editor
GOVERNMENT has rolled out nationwide investor education awareness campaigns aimed at stimulating internal savings to support the productive sector and steer the economy towards an upper middle-income status by 2030.

The participation of every Zimbabwean is critical in rebuilding the country’s economy and the Government hopes to rope in every stakeholder in generating savings towards rejuvenating the productive sector and widening the job market.

Zimbabwe has set a target of achieving a US$8 billion industrial and commercial sector by 2023 whose ambitious roadmap was approved by Cabinet a fortnight ago. As the country moves to implement the National Development Strategy (NDS1:2021-2025), developing a robust industrial and commercial sector is vital to import substitution and a key component of the Government’s economic transformation agenda.

Industry experts and the Government concur that realising the gains of a diversified economy that is anchored on vibrant value chains requires millions of dollars in recapitalising domestic industry.

Under the US$8bn focus, a number of investments are scheduled for implementation through private-public-sector-led initiatives.

These include 23 planned investments amounting to US$545 million in the food, drink and tobacco sub-sectors, US$32 million investments in the textiles, clothing and leather sub-sectors and a total of eight projects with an investment value of US$1,5 billion in the metals and electricals sub-sectors.

To buttress productive sector revival, Finance and Economic Development Minister, Professor Mthuli Ncube, on Friday launched the drive to harness domestic investments as he unveiled the “Investment 101 Handbook” and stock market educational video in Bulawayo.

The handbook provides all the information an investor may need to make informed decisions about savings, investing and asking the right questions while the video illustrates how small businesses can ride on capital markets to expand their operations. “We need the participation of the Zimbabwean public to help our nation’s economy grow,” said Prof Ncube.

“The more people and investors we have participating on our capital markets, the lighter the burden of growing Zimbabwe and achieving Vision 2030. To this end, we must stimulate internal savings and direct these to the productive sector for sustainable economic activity and for the long-term stability and development.”

The Treasury boss said while every Zimbabwean was a potential investor in financial markets, there was a gap in financial literacy. He also admitted that historic economic failures and subsequent investment losses were also contributing to public frustration. As such, the minister said scaling up investor education campaigns was critical in unlocking high value domestic savings.

“A key component of this effort is building the financial literacy of our people, which will equip the public with the knowledge and skills to manage their money effectively.

“Through no fault of their own, and indeed owing to the many challenges that they have encountered, Zimbabweans have understandably invested in a reactionary way that is based on their experiences,” said Prof Ncube.

For instance, the minister said Zimbabweans have displayed unstoppable focus and clarity around investment in property, which is a solid long-term asset.

In this regard, Prof Ncube said the growth of participation in capital markets must be underpinned by financial inclusion. The model seeks to open up the investment space to the average man and woman through lowering and removing barriers to participating on the capital markets.

The minister said the investment handbook and stock market video, were part of tools already developed to enhance ongoing outreach on financial matters.

In view of the higher levels of informality in the economy, he directed the Securities and Exchange Commission of Zimbabwe (SECZ) and the Investor Protection Fund to effectively regulate the activities of licensed players and to provide wider investor education.

Prof Ncube said collaborative efforts were significant in helping the Government achieve its broader goals of financial inclusion and attracting individual investors to invest in capital markets and building the nation’s wealth.

Last month the SECZ launched its “GrowWealth” a similar initiative whereby trust fund managers are collaborating to support the growth of their industry through co-ordinated information sharing. As the Government is pursuing ease of doing reforms, it has also pledged to ensure protection of all investments and widening the choice for potential investors.

Business leaders, academics, stock market players and senior Government officials attended the event.