Give economy a brief respite

At such a critical stage, patients might need a machine to assist them in breathing, blood may have to be administered and feeding may have to be done via injection. The same sort of approach should be applied to our traumatised economy.

 

No effort should be spared in the quest to resuscitate the comatose economy. For instance our debts need to be written off or re-scheduled.

Capital, the lifeblood of any economy, needs to be accumulated through foreign direct investment. Peace, tranquility and order are also mandatory if the recovery is to be realised. Toxic talk will only serve to frighten investors or even donors. Above all, the patient must not be required to donate organs, including blood, until they are fully recovered.

This is why the call for indigenisation, as well as for the levy to fund it, is wrong and toxic medicine. The government, as the doctor, should restore the vital organs of the state from shutting down before making demands from a sick economy.

The financial sector should be discharged from the hospital and allowed to recuperate before being asked to contribute to the fiscus. The same applies to the agriculture sector. We need to produce enough food to feed ourselves at costs no greater than those in Brazil, or China. There are also infrastructure needs that need to be attended to.

And as we know, government resources will not be enough. That is why we need debt write-offs and access to capital markets. We also need foreign direct investment to kickstart our economy as China and Brazil have expertly done.

After the economy is restored to health, it may surprise Indigenisation minister, Saviour Kasukuwere, that indigenisation will take off on its own. All the government needs to do is craft enabling legislation for the recovery of the economy and enforce the rule of law.

Regai Titaure,
Harare.

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