The Zimbabwe Coalition on Debt and Development (ZIMCODD) has urged Finance minister Mthuli Ncube to ensure that the industry is well funded in his 2022 national budget for retooling.
ZIMCODD said this will ensure productivity as most industries are currently using archaic equipment and outdated technologies.
Ncube who is on November 25 expected to announce a $900 billion budget is also under pressure to adequately fund other sectors such as health, education and social services.
In a statement on the country’s economic outlook produced this week, ZIMCODD said the country also needed political action supported by an explicit legal framework giving citizens and companies full property rights in order to reverse the poor investment climate. ZIMCODD statement read:
Key sectors like mining require US$3 billion for retooling and capitalisation. How will the MoFED [Ministry of Finance and Economic Development] facilitate such funding, given the dried credit lines? The 2022 national budget has got huge expectations from the business sector and government is expected to create a level playing ground for the business sector if productivity is to be supportive of the growth trajectory expected in 2022.
The Zimbabwean industry has been collapsed for decades and imports have sustained businesses and consumers so far.
ZIMCODD added that the observance of several political-governance reforms is essential in the government’s engagement and the re-engagement drive.
ZIMCODD also urged the government to invest in environment-friendly hydropower plants equipped with cost-efficient technology capable to generate power even at low water levels.