PDF Print E-mail
Monday, 30 May 2011 20:56

Entrepreneurship Key to $100 Billion Economy

By Anthony Jongwe

HARARE, Zimbabwe, May 30, 2011 (Financial Gazette) - Prior to the 2011 edition of the CEO Roun-dtable organised by his company, KM Financial Solutions, chief executive, Kenias Mafukidze, said that Zimbabwe had the potential for double-digit growth, which can be sustained over the next two decades for a $100 billion economy by 2030.


"This kind of growth will not be achieved by error! It will only be possible through painstaking, co-ordinated planning and serious engagements by all stakeholders," said Mafukidze. He said the country has unmatched subsoil resources, human capital, unwavering resilience, which if combined with creative planning and synchronised efforts could enable the country to realise double-digit growth.


This message was echoed by Vice President Joice Mujuru when she opened the CEO Roundtable in Nyanga. She said: "Zimbabwe can maintain double digit growth rate in the next decade or two" and reiterated the need for a "shared vision, known and acceptable to the majority of Zimbabweans."


The Vice President called for massive investments in infrastructure, particularly the power and energy sector as such investments were critical for the revitalisation of industry. Recently, the need for and possibility of a $100 billion economy predicated on double digit growth rate in the next decade or two received renewed impetus from another senior member of the inclusive government.


In his keynote address to Movement for Democratic Change's third congress, which was held in Bulawayo in late April, the party's president and Prime Minister, Morgan Tsvangirai said he saw a Zimbabwe with a $100 billion economy by 2030.


"It is our responsibility as a new generation taking this country forward for the next 30 years to move this country from a Third world country to First world status. Yes, it can be done with the human and natural endowments that we possess. With political stability and confidence of our people in a credible and legitimate government, it is possible to lay the foundation for a new Zimbabwe," he said.


It is not so much about the projected size of the economy that is at the crux of the emergent discourse since some may argue that it is very much possible to have a $100 billion economy within the next decade or that a $100 billion economy is not a sufficiently inspirational goal for a highly endowed and rich economy like ours since it corresponds to the market capitalisation of some well-known Japanese companies.


A key point is that Zimbabwe faces myriad developmental challenges which require that all stakeholders think creatively and collectively how these can be overcome. The economic crisis experienced during the past decade has whittled economic activity in the country with deleterious consequences.


In 1980 Zimbabwe had a gross domestic product (GDP) of $6 billion, 7,4 percent the size of South Africa, whose GDP has grown to $354 billion. Zimbabwe is therefore currently only at 25,6 percent of its 1980 potential. To remain at 7,4 percent of the size of SA's economy, Zimb-abwe's GDP has to grow to about $26,2 billion, a far cry from its current size.


Independent economist and social commentator, John Robertson, contends that as much as 70 percent of Zimbabweans are unemployed, a disturbingly high figure since it corresponds to 1970 levels implying massive contraction of the country's economy over the past two decades. Latest statistics released by ZimStats point to the fact that only 850 000 people are formally employed out of a 12 million population.


According to Robertson, a third of those formally employed are working in the civil service which is also under immense pressure to trim its 'bloated' workforce following a government-sanctioned workforce audit conducted by Ernst & Young India.


Traditionally, the manufacturing and agriculture sector have been the major sources of new jobs in Zimbabwe but both have suffered huge contraction over the past two decades condemning able-bodied Zimbabweans into the Diaspora and the informal sector where they are unemployed, under-employed or semi-employed.


Conventional thinking by proponents of the $100 billion economy believe that this could be achieved on the basis of a revitalised and efficient manufacturing sector, underscoring a dominant strand of thinking that has always believed in the efficacy of big business as the cornerstone of economic activity.


Even the latest noise surrounding a new Industrial Policy for the country points to this erroneous belief. While it is all good to talk about the need to ramp-up capacity utilisation levels in manufacturing, reduce supply-side constraints such as utilities through capital expenditures in infrastructure, remove 'illegal sanctions', accelerate indigenisation and economic empowerment as well as stem the 'brain drain' as necessary preconditions for double-digit economic growth, there has been muted silence on the role of small businesses in this envisaged scheme of things.


Whether by design or accident, adherents of the $100 billion economy have been silent on the potential role of a vibrant small business sector predicated on healthy doses of entrepreneurial spirit in unlocking the much-sought after double digit economic growth which is the precursor to an industrialised nation status on the country's Golden Jubilee of independence.


This flies in the face of empirical evidence on effective development strategies for developing countries. Scientists from various disciplines agree about the importance of small business to economic growth, employment creation and personal wealth (e.g. Autio, 2005; Mead, 1993; and Kirzner, 1997).


The current limited opportunities in the formal sector and high unemployment rate in Zimbabwe should naturally lead to increased attention on the micro and small enterprise sector. This is something that should resonate succinctly throughout the $100 billion economy movement. (END)



Я вношу мой скромный вклад в дело процветания этого края.

Миссис Моллой вышла из задумчивости.

Стиффи только что сказала ему, "Скачать бланк расходного ордера"что хочет выйти замуж за священника.

Шимпу было довольно и того, что она вполне ясно и недвусмысленно сообщила, что ждет от него немедленных действий.

Они не рискнут убить его здесь, на открытом месте.

Утреннее солнце лизало волны, и решение мое было твердым.

Он резко и поспешно сунул ее "месть боксера скачать"Стиффи, будто каска жгла его, "Новый англо-русский и русско-английский словарь. 100 000 слов"а Стиффи в восторге издала вопль, полный неги и ласки.

Ее волосы "скачать текст песен детских"отливали медью, губы алели, как вишни, глаза сверкали.

Ну, если "скачать кино группы крови"моя личная жизнь так тебя занимает, предоставляю тебе "курсовая работа по инновационный менеджмент"и эти самые обязанности, "игры с динозаврами стрелялки"прервал мысли наставника Римо.

Наши мысли обратились к "скачать картинки на тел"будущему.

Чем больше времени пройдет, пока я смогу "Диагностика кармы (вторая серия). Опыт выживания. Часть 3"действовать, тем сложнее все может стать при обычном порядке наблюдения за "100 лучших украинских блюд"человеком.

Я должен полагаться только на свою восприимчивость, скорость, а также на "игра скачать нокиа"наши совместные силы и разум.


Articles in Calendar

< May 2011 >
Mo Tu We Th Fr Sa Su
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29

Buziness Africa magazine