2.3 Indigenisation and Economic Empowerment
His Excellency, the President, gave clarity on this matter. What remains is to, comprehensively change the current legislation relating to Indigenization and Economic Empowerment (IEE) to reflect the position as clarified by H.E. the President on the matter. Business is pointedly supportive of Government efforts on IEE.
2.4 Sustaining Agriculture Recovery & Growth
As highlighted above, Government interventions in agriculture, on the back of good rains have had a positive impact on agriculture output and productivity. Going forward, it is important that such interventions be sustained but cost effectively, ensuring the twin objectives of sustainability and farmer viability. This will ensure food security and minimizing imports of grain, saving much needed foreign currency.
Sustaining agriculture production and productivity also critically depends on the availability of appropriately priced medium and long term funding, notably for agriculture infrastructure development such as dam construction and irrigation infrastructure. It is for this reason that that clearance of external payment arrears is important, for Zimbabwe to access cheaper medium and long term financing from Multilateral Financial Institutions. In addition, international private financiers with deep pockets and access to lines of credit can play a growing and dominant role in agriculture financing.
In addition, a number of sectoral and micro policy measures are critical in this regard, including, timely provision of inputs, pricing of inputs for farmers and farm gate prices that are congruent with inputs as well as ensuring downstream industries also benefit from increased agriculture production and productivity.
2.5 State Enterprise Reforms
There is need for definitive action by Government towards state enterprise reforms to ensure sustainable fiscal policy. Over the years, many state enterprises have continued on a “Business as Usual Model” draining state resources on an on-going basis. There is need for Government to operationalize State Enterprise reforms to ensure that state enterprises contribute to the fiscus through comprehensive reforms including commercialization and where necessary strategic private sector partnerships.
State enterprises in China are among the largest corporate entities in the world operating viably, profitably and sustainably, yet delivering public goods and services. A significant number of them are, listed among the Global Fortune 500 – a list of the largest 500 global corporations. State enterprises must deliver, in order to underpin growth of the economy.
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