SONA| Strong on Stance, Short on Specifics?

By Newton Mambande

HARARE – PRESIDENT Emmerson Mnangagwa’s State of the Nation Address (SONA) on October 2, 2024, provided a comprehensive overview of the country’s current state and future direction. As an entrepreneur and researcher, I will analyze the address from a business and economic perspective, focusing on key aspects such as energy, food security, agriculture, minerals, finance, and legislative reforms.

Energy Sector: A Step in the Right Direction
The President’s emphasis on investing in renewable energy initiatives is a welcome move, given the country’s vulnerability to climate change and the need to reduce reliance on traditional energy sources. However, more needs to be done to incentivize private sector participation and investment in this sector. The government should consider offering tax breaks, subsidies, or guarantees for power purchase agreements to attract investors.

Food Security and Agriculture: A Mixed Bag
The record wheat harvest of 600,000 metric tonnes is a positive development, showcasing the government’s commitment to agricultural self-reliance and food security. Nevertheless, the sector still faces significant challenges, including climate change, lack of irrigation infrastructure, and limited access to finance for smallholder farmers. To address these challenges, the government should prioritize investment in irrigation infrastructure, extension services, and agricultural finance initiatives.

Minerals and Mining Development: Untapped Potential
The mining sector remains a significant contributor to the country’s economy, but its potential remains untapped due to policy inconsistencies and lack of transparency. The government should prioritize the development of a comprehensive mining policy framework that promotes transparency, accountability, and value addition. This will help attract investment, increase revenue, and create jobs.

Finance: A Need for Fiscal Discipline
The introduction of the Zimbabwe Gold (ZiG) currency is a step towards stabilizing the domestic economy. However, the government needs to demonstrate fiscal discipline and ensure that the currency is backed by adequate reserves. Furthermore, the government should prioritize debt restructuring and transparent management of public funds to restore confidence in the economy.

Legislative Reforms: A Critical Component
The President’s ambitious legislative agenda is a positive development, but the government needs to ensure that the legislative process is streamlined and efficient. Prioritizing the passage of key Bills related to economic development, social justice, and good governance will help improve the business environment and promote economic growth.

Recommendations for Economic Growth and Development
To achieve sustainable economic growth and development, the government should consider the following recommendations:

• Diversify the economy: Expand into manufacturing and services to mitigate the impact of sanctions and global market fluctuations.
• Strengthen trade relations: Enhance foreign currency inflows and support overall economic stability through strategic trade agreements.
• Invest in human capital: Focus on education, healthcare, and infrastructure development to create a conducive environment for economic growth.
• Promote public-private partnerships: Attract investment in infrastructure development and improve efficiency in project execution.
• Foster a culture of innovation: Encourage innovation and entrepreneurship through funding and mentorship programs.

In conclusion, while the SONA provided a comprehensive overview of the country’s challenges and opportunities, the government needs to prioritize implementation and demonstrate a commitment to transparency, accountability, and good governance. By working together with the private sector, civil society, and international partners, Zimbabwe can unlock its vast potential and achieve sustainable economic growth and development.

Contact Information: Newton Mambande is an entrepreneur and researcher. He has published scientific research and scholarship in journals. He is reachable via Email: newtonmunod@gmail.com WhatsApp/Call: +263773411103