ZIMBABWE’S economic landscape is a stark testament to the limitations of conventional development models.
Decades of institutional fragility, hyperinflation and a volatile dual-currency system have rendered standard economic prescriptions ineffective.
It is time to dismantle the textbook approach and forge a new path, one rooted in pragmatic solutions, a deep understanding of Zimbabwe’s unique realities and a strategic reintegration of our most valuable resource: our diaspora.
The current paradigm, often reliant on foreign aid and orthodox monetary policies, has demonstrably failed. We cannot expect structural adjustment programmes designed for stable economies to address the fundamental issues plaguing a nation grappling with institutional decay and currency chaos.
To truly unlock Zimbabwe’s potential, we must embrace a radical, locally-driven approach, one that actively engages and empowers our global citizens.
A foundation of monetary realism
First and foremost, the artificial pegging of the exchange rate must cease. Allowing the market to determine the value of the Zimbabwean dollar, or its successor, is crucial for price discovery and economic stability.
This will inevitably lead to initial volatility, but it is a necessary step towards a more sustainable equilibrium.
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Secondly, we must re-introduce a credible local currency, anchored by a job guarantee programme, a bold initiative that directly addresses the rampant unemployment and lack of demand.
The government will act as the employer of last resort, offering jobs at a living wage in public works projects, infrastructure development and essential services.
This creates inherent demand for the new currency, as workers are paid in it. To further solidify its value, the government will mandate that all taxes and fees be paid in this new currency.
This creates a closed-loop system, ensuring consistent demand and preventing the currency from becoming a mere speculative instrument. The dual-currency system, while currently a necessity, must be gradually phased out as the new local currency gains stability and acceptance.
Robust financial institutions
Crucially, robust financial institutions are paramount. We must rebuild a banking sector capable of offering financing and loans to credible borrowers, fostering entrepreneurship and investment.
This necessitates stringent regulatory oversight, capital adequacy requirements and a focus on risk management. The government must actively promote the development of a diverse financial ecosystem, including microfinance institutions and credit unions, to cater to the needs of all segments of society.
Ethical leadership
No economic transformation can succeed without a bedrock of integrity. A clear tone from the top is essential in building a culture of ethics and compliance with the law.
This starts with requiring all key government employees and those at the helm of strategic industries, such as mining, to undergo mandatory ethics and compliance certification. This demonstrates a commitment to transparency and accountability.
Furthermore, a transparent and rigorous punishment system must be implemented for those who violate the law. Impunity cannot be tolerated.
Corruption, whether petty or grand, erodes trust, stifles investment and undermines the foundations of a just and prosperous society.
We must recognise the critical role of the diaspora. Zimbabwe has inadvertently exported its most valuable resource: a young and highly-educated population.
Despite lacking direct voting rights, these diasporans contribute billions of dollars annually, financing education, healthcare and housing for the most vulnerable.
A development plan that values and incorporates the diaspora is essential.
We must provide them with the same incentives that other foreign investors receive, creating a welcoming environment for their skills, capital and expertise.
This includes streamlined investment processes, tax breaks for diaspora-led businesses and programmes that facilitate knowledge transfer and skills development.
We must actively work to bring them back, recognising the immense value they bring. As diasporans, we must realise that we cannot continue to simply be apostrophes to our country’s political and economic events. We are integral chapters in Zimbabwe’s story and our active participation is crucial for its success.
Harnessing Zim’s mineral wealth
Zimbabwe possesses vast reserves of rare minerals, a potential gold mine for sustainable development. However, these resources must be managed strategically.
Instead of relying on raw exports, we must invest in value-added industries, leveraging the diaspora’s technical expertise. This entails establishing processing plants, manufacturing facilities and research and development centres, with diaspora members playing key roles.
We should prioritise partnerships that facilitate technology transfer and skills development, ensuring that Zimbabweans, both at home and abroad, are at the forefront of this industrial revolution.
Furthermore, we must establish a sovereign wealth fund, transparently managed, to ensure that the benefits of mineral wealth are shared equitably and invested in long-term development projects, such as education, healthcare and infrastructure, with diaspora input.
The illusion of foreign aid
The persistent reliance on foreign aid has fostered a culture of dependency and hindered the development of indigenous solutions. While humanitarian assistance remains crucial in times of crisis, it cannot be the cornerstone of economic development.
Instead, we must focus on building self-reliance, fostering a robust private sector and attracting diaspora investment.
We need to create an environment conducive to local entrepreneurship, by streamlining regulations, providing access to finance and investing in skills training.
We must cultivate a culture of innovation and resilience, empowering Zimbabweans, both at home and abroad, to become the architects of their own economic destiny.
Architects of our future, together
Zimbabwe’s path to prosperity lies not in replicating borrowed models, but in crafting a unique and resilient economic framework, one that actively includes our diaspora.
We must embrace a pragmatic approach, one that acknowledges the realities of our situation and leverages our inherent strengths, including invaluable contributions of our global citizens.
Let us not be mere spectators in the grand theatre of global economics, but active participants, shaping our narrative with courage and conviction. Let us weave a tapestry of economic resilience, thread by thread, with the vibrant colours of innovation, determination and a deep-seated belief in our own potential.
For within the heart of every Zimbabwean, home and abroad, beats the rhythm of resilience, a silent symphony of hope, waiting to be conducted.
Let us compose a future where our children inherit not the burdens of the past, but the boundless possibilities of a nation reborn, a phoenix rising from the ashes, its wings outstretched, ready to soar, united in purpose.
- Dr Nota is an economist and a public health compliance and ethics professional. He is the founder of Navala Global, LLC and Nota Consulting Group. A former professor of economics in the United States and a founding member of the African Centre for Economic Justice. These weekly New Perspectives articles, published in the Zimbabwe Independent, are coordinated by Lovemore Kadenge, an independent consultant, managing consultant of Zawale Consultant (Pvt) Ltd, past president of the Zimbabwe Economics Society and the Chartered Governance & Accountancy Institute in Zimbabwe (CGI Zim). — [email protected] or mobile: +263 772 382 852.
