Wananchi , a slow week grinds hopelessly to a colorless end and the motherland prostrate,lies in its permanent state of half comatose. These are times when diaries must be kept and every second reflected upon.For in those tiny seconds history is being made albeit though all kinds of Frankenstein concoctions. A potpourri of all kinds of emotion ,all kinds of thought ,all kinds of doubt ,all kinds of self pity and yes ,self derision. These are the times ,when real friends ,few as they maybe really stand up and oh yes the pretenders ,the vipers ,the hangers on and the riders ,simply disappear into far flung horizons. Yet again ,the mess around is clear proof of the strength of our cause . The beauty of our convictions and the purity of rising up,dusting ourselves and moving ahead.Collectively ,united ,disciplined and with the clarity of passion. This country has so much potential .It knows it does not deserve to be in this ditch .It must take its pride of place. The permanent state of crises is unsustainable .The giant must arise. The demon of predatory politics needs to be decapitated .The country must return to legitimacy and and let the games begin. In the process of rebuilding this country ,gross capital formation must be key. As I have stated before ,the country requires US$14.4 billion dollar for infrastructure between 2010 and 2020.This translates to $1.4 billion annually . In my view the key pilots projects that must be attended on urgently are 1) the construction of the Beitbridge Harare Chirundu toll road,measuring 853 km. 2) the completion of Gwayi Shangani dam 3) the completion of Hwange Seven and Eight power stations 4) the commencement and completion of the Lupane Coal Bed Methane Gas project. I did not mention the Tokwe Mukosi Dam ,everything being equal it must be commissioned this year. Clearly Zimbabwe does not have the capacity to finance these projects on its own. The issue of foreign direct investment particularly in the form of PPP s becomes critical. In the immediate short term. The question of PPPs.( Public Private Part erships) will be central to financing some of these projects as Zimbabwe hopefully concludes its SMP which may open access to World Bank and other IFI s resources. However ,the road to PPP s is fraught with pot holes ,many of them self dug. Firstly is the challenge of of the absence of the proper frame work for PPPs.Thirty three years after independence this is a simple own goal. The country s Procurement Act ,is impervious to the logic of PPPs and in effect basically exists in contradiction to the same. One of the many reasons why this heinous oiler of corruption should be repealed. Second is the absence of a specialized PPP unit in Government,with the relevant expertise to deal with these complicated issues. The issue of capacity is key.Many a time Government negotiates these excruciatingly difficult contracts but there is no competent team to advise Government . These kind of agreements ,require skilled accountants,lawyers ,investment analyst ,sometimes staticians ,engineers and other experts. These people have left Government ,if they were there at first instance. Rebuilding or regrouping capacity is simply critical. Third is the absence of a strong regulatory frame work.This is a big omission whose absence ,can pave the way of corruption. The point therefore is that whilst PPPs are welcome a lot of soft ware work is required before the country can attract the big boys and girls of international fiancé capital . In the mean while the mobilization of domestic resources ,in a legal ,non predatory manner is required. This country needs savings of at least 50% of GDP,if domestic savings can play a spurring role to the country s developmental agenda. In the pursuit of the savings agenda in this country ,Banks are at the center thereof. This country is seriously under banked with less that a quarter of the population banked. To dramatize it 77 000 Zimbabweans share one brick and mortar bank. Thank God ,cash transfers systems have become both a hit and a relief but more needs to be done in terms of regulation and the levies being imposed . The point being made is that building savings is not an option ,it has to be done. That being the case Banks must play their part in mobilizing domestic savings,including providing incentives to savings. This in the long time will really help increase the balance sheets of those banks. However those in power must recognize the sensitivity of this sector.It is an important but fragile sector of any economy . Agreed there should, be strong regulation of the same but this must not translate into slogans and overbearing actions. The Banking Sector in this country faces so many challenges under a time that in the current thirst and quest for capital they have become so important. Many of these challenges were in fact captured in myn2013 Budget Statement and include the following: -Absence of RBZ s lender of last resort facility -Undercapitalized Central Bank -under capitalization of some of the Banks -High interest rates on lending -High non performing loans -limited access to off shore funds - some corporate governance issues - a huge unbanked informal sector -limited use of e banking platforms - uncertainty around application of the Indegenisation and empowerment laws. It is critical to understand that Banks are shells without their clients capital stored in same. Any threat to same will simply result in deposits flights. Wananchi will put their money and pillows or worse off they will take their money off shore. These numerous challenges though big are not insurmountable .They can be resolved. This economy is prone to cyclical downward spirals. Almost a permanent state of economic decline which were interrupted by growth spikes fromUDI in 1965 to 1975, the early eighties and then the period 2009 to 2011. Zimbabweans know the pain and the rape of depression economics. We lived this through the crises period 2007 to 2008, We know very well,that once a country sinks into the sharp cycle of depression we were in,it is not bad economics at at all.It just horrible politics. That is the kind of think that should not be allowed to,happen. We have been beaten before ,we can not allow the same again. These are very tough times indeed ,but logic and wisdom can resolve the crises of legitimacy and governance gripping this country . But the solution can only be achieved if for the first time ,those in power think like national leaders not energetic village heads working for narrow partisan party interests . That after all is what has brought us to this cul de sac Wananchi ,stay blessed,look after your families and for a change smile. Yes that big Bantu smile. Zikomo
Posted on: Thu, 05 Sep 2013 23:54:14 +0000
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