Harare, (New Ziana) – With concerted efforts from all stakeholders Zimbabwe can achieve its vision of becoming an upper-middle
income economy by 2030, despite the challenges it faces, African
Export-Import Bank vice-president, Denys Denya, has said.
“We can succeed in spite of the prevailing headwinds and challenges we
currently face, be it climate change, geopolitics, insecurity in parts
of our continent or global supply chain disruptions,” he told the annual
conference in Victoria Falls of the Chartered Governance and Accountancy
Institute in Zimbabwe.
“I firmly believe that, through concerted efforts from all stakeholders,
we can indeed grow Zimbabwe’s economy to achieve our 2030 ambitions,”
Denya, who is the Afreximbank vice-president responsible for finance,
administration and banking services, said.
He said the journey towards achieving an upper middle-class status by
2030 is multifaceted, and demands strategic focus across various
segments of the economy.
Denya, who is Zimbabwean, said he had lived in Egypt for more than a
decade and witnessed first-hand how the provision of enabling
infrastructure can bring forth new business opportunities and ignite
sustainable economic growth.
He said he was in the room in 2015 when the Egyptian president announced
his government’s plan to build a new city near Cairo to house five
million people.
“I thought it was a pipe dream but six years later in 2021 Afreximbank
was able to hold its 29th AGM in this new beautiful city and we all
witnessed what Africans can do when we put our minds to solving our
problems,” he said.
“We have also witnessed other African nations transform their economies
to achieve impressive GDP growth, and this should inspire our confidence
that, with the right policy framework, robust infrastructure
development, and a conducive business environment, Zimbabwe can indeed
realise its full economic potential,” he added.
He said Ghana grew its GDP from US$11 billion in 2000 to nearly US$80
billion in 2021. Likewise Kenya’s GDP surged from roughly US$12 billion
in 2000 to more than US$113 billion by the end of 2022. There had also
been outstanding achievements in Rwanda, Ethiopia and Mauritius.
“These achievements serve as compelling examples of the immense growth
potential that Zimbabwe also possesses. During this period Zimbabwe’s
GDP grew from around seven billion United States dollars to
approximately US$28 billion. It’s evident that our nation harbours
substantial untapped potential,” he said.
Zimbabwe has undoubtedly faced significant challenges in recent years.
However, it was vital to recognise, he said, that within these
challenges lay unique opportunities for growth and transformation.
“To navigate this path effectively, we must strategically focus on
nurturing sectors which hold growth potential,” Denya said, adding that
these sectors included mining, agriculture, tourism and manufacturing.
Zimbabwe’s mining industry, despite boasting a remarkable array of
minerals, currently contributed only about 12 percent to the annual GDP,
largely because it exported them raw with no or little beneficiation and
no linkage to regional value chains.
“When managed strategically and sustainability, these resources have the
potential to drive significant economic growth,” he said.
When minerals were exported raw, the nation lost value. Experts
estimated that when raw materials were exported only about 10 to 20
percent of the value remained within the country’s borders. The
remaining 80 percent accrued to processing countries.
“By processing lithium locally and exporting higher value products like
battery precursors, we can secure a more substantial share of this
rapidly growing market,” Denya said.
He said there was no shortage of funding for such projects even at the
project preparation stages.
The country could cooperate with countries such as the Democratic
Republic of the Congo and Zambia on the initiative to develop industrialparks focusing on the lithium battery chain, which would further
strengthen its position in this sector. The same held true of other
minerals such as chrome and platinum.
Institutions such as Afreximbank wholeheartedly supported initiatives
aimed at establishing processing and smelting hubs in Africa and moving
away from exporting raw minerals.
Afreximbank had supported Gabon to stop exporting logs and instead
manufacture furniture and other value-added products. It had supported
Benin in moving from exporting raw cotton to exporting clothing to
retail shops in Europe and from exporting raw cashew nuts to exporting
processed and packaged nuts. Altogether it was working on 12 industrial
and export processing zones across the continent.
It was collaborating with various African governments, including those
of Gabon, Benin, Togo, Malawi, Kenya and Botswana, to develop and expand
industrial parks and special economic zones. Discussions were in
progress for the establishment of industrial parks in DRC and Zambia for
the lithium battery value chain.
To accelerate economic growth, Zimbabwe should intensify its focus on
industrialisation and export development, with a key area being
establishing industrial parks and special economic zones.
Zimbabwe’s tourism sector could generate billions in foreign currency.
However, to realise this potential required deliberate investment in
infrastructure, such as state-of-the-art conference and hotel
facilities, and strategic marketing to spotlight the country’s unique
offerings.
“Yet it’s important to understand that it’s not solely about attracting
tourists. It’s about creating unforgettable experiences that compel them
to return,” said Denya.
Agriculture held immense potential for propelling the nation’s growth,
he said.
It was important to embrace smart agriculture and cutting-edge
technology, he said. Bringing markets closer to smallholder farmers
would effectively increase their productivity, enhance their returns and
go a long way in addressing the logistical challenges they face.
There was a significant opportunity for private sector players and
businesses to develop agricultural value chains and establish
agro-processing hubs across the country, as well as build rural
industrial parks.
Denya listed some of the obstacles that had hindered progress over the
past two decades, and needed to be confronted as economic instability,
inflation, foreign currency crises, political uncertainties, and the
impact of the challenging global environment on the pricing of primary
commodities.
“The journey towards Zimbabwe’s economic transformation is a collective
endeavour that requires the active participation and commitment of all
stakeholders,” he said.
New Ziana
