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Zimbabwe's Short Term Economic Plan Fails to Attract Funding, Investors

Lack of foreign direct investment and Zimbabwe’s policy discord have crippled the country’s ambitious $9 billion medium term plan launched last year aimed at boosting the nation’s economy and creating employment for locals.

Economists said revelations by Investment Minister Tapiwa Mashakada that the economic blueprint has missed almost all its targets, was widely expected as Zimbabwe is currently struggling to attract crucial foreign direct investment and international donors.

They said this was worsened by poor planning, policy inconsistencies and political tension within the unity government.

Indications are that the short term plan, which was to be funded through domestic savings and new investment from abroad, failed to create jobs.

The economy is recording sluggish growth in the manufacturing and agricultural sectors.

The plan had envisaged that the economy would grow by an average 7.1 percent for the next four years.

Economist Godfrey Kanyenze of the Labor and Economic Research Institute of Zimbabwe told VOA there were high expectations that the plan will not stimulate the Zimbabwe economy.

Bulawayo businessman Bulisani Ncube said the government should abandon the economic blueprint.

For perspective on the plan and its short-comings, VOA reporter Tatenda Gumbo spoke to Labor and Economic Development Research Institute of Zimbabwe economist Prosper Chitambara and legislator, Paddy Zhanda, who’s also the chairman of the parliamentary committee on budget and finance.

Zhanda says the MTP is a sophisticated economic recovery plan that has greatly underperformed.