Despite all the hurdles you know and the unforeseen, there is a way out of the economic quagmires which Zimbabwe is facing.
Firstly, there is the need to come to terms with the reality that the Zimbabwean economy is largely informal and not formal. For instance, Chakravarti noted that in 2015, the formal banking sector recorded around USD 4.5 billion in deposits against USD 6.6 billion mobile phone transfers happening in the informal sector. However, there are no policies to support these developments. Therefore, there is need for supportive policies that will encourage and nurture investments in various industries including the informal sector. So I support the introduction of Special Economic Zones towards achieving.
Emphasis – it is also vital to acknowledge that our informal sector is the leading performer and there is need to put in place most favourable and encouraging policies to nurture the informal in a bid to ensure economic growth and sustenance. In this regard, it is a misleading notion to say that the current Zimbabwe’s economy is collapsing, rather, it is informalised. Therefore, there is need to tap more from the informal sector. For instance, oil companies such as Surface Willmar (Pure Drop) are doing well in oil manufacturing.
Secondly The Currency Wars: Zimbabwe is in talks with South African government to adopt the Rand currency (gossip is the new facts/truth) as the national currency which Chakravarti says is a positive move, considering that we are importing about ¾ from South Africa and exporting ¾ again. Thus one can argue that Zimbabwe is a defacto extension of SA. Hence, the Rand adoption will stabilise the economy, much the same way we do have enough skilled labour as compared to South Africa, which is a firm foundation towards economic growth.
State-led Vs Market Led our own to be or not to be… there is the need for Zimbabwe to do away with the over drive “State-led” economic model (outside the understanding of current policies towards nationalization) and move towards a state-managed “Market-led” economic model. In this model, the roles of the State will be limited while the market will be state managed through firm regulatory and supportive instruments and policies.
In conclusion, knowing our history will be a first step towards finding a futuristic developmental state for the generations to come. When they look back to history young people and generations to come should stand proud.
Liven is an innovator and campaigner with theSpace drop a line and follow us on @thespacezw or like us on facebook.com/thespacezw. This article is largely based on the lecture series held by TheSpace on the 5th of February 2016 with professor Chakravarti