Accessibility links

Breaking News

Political Will Needed in Zimbabwe for Economic Policies to Work - Analysts

A fiscal plan for the second half of this year unveiled this week by Zimbabwean Finance Minister Tendai Biti can only deliver results if parties to the Global Political Agreement on which the unity government is based address outstanding issues, economic analysts said Friday.

Adherence to the terms of the power-sharing agreement will bolster confidence among international and local investors that Zimbabwe is politically stable, they say.

Otherwise, analysts said, Biti’s projection of a 3.7% rise in gross domestic product may not materialize amid major economy hurdles including insufficient monetary liquidity.

Economist Prosper Chitambara of the Labor and Economic Development Research Institute of Zimbabwe said Biti’s midterm fiscal review disappointed those who had hoped he would cut burdensome taxes, particularly on oil imports, to foster economic growth.

Economist and consultant Luxon Zembe told reporter Sandra Nyaira of VOA's Studio 7 for Zimbabwe that Biti’s review was frank and honest – but parties to the government of national unity need to show the political will to move Zimbabwe forward.

Zembe said that given the right impetus, Zimbabwe's economy can gain momentum. He said Harare should adopt South Africa's rand to remedy the lack of cash in circulation

More reports from VOA's Studio 7 for Zimbabwe...