By Davison Vandira
THE government’s inward-looking policy in the implementation of capital projects has been endorsed by experts who are convinced that it is a giant step towards sustainable economic development.
The second republic has been showered with praise for giving a kiss of life to the Harare-Beitbridge Highway after engaging five local contractors, Bitumen World, Exodus, Fossil contracting, Tensor and Masimba with around 300 kilometres having been covered without any foreign debt.
In the same spirit of domestic capital mobilisation and contracting local companies, the government this Tuesday announced that it has roped in Kuvimba Mining House to spearhead the resuscitation of the country’s steel giant, Ziscosteel.
Kuvimba mining house has in the past proved its prowess through the resuscitation of Shamva gold and Jena mines, capping it off with a declaration of a dividend to the government last year.
The development has come with massive confidence in the mobilisation of domestic resources with economists convinced that the government’s inward-looking policy is the way to go.
“We are gratified by the government’s stance of looking inward for huge capital projects because it removes the burden the economy carries when it comes to financing the foreign currency obligations to service such loans,” said Christopher Mugaga, ZNCC CEO.
“With Zimbabwe currently under sanctions the only sure way of bridging the financing gap is to use domestic capital which is available which has got a multiplier effect to development as has happened with other jurisdictions a case in point being China,” said Dr Prosper Chitambara Development Economist.
Analysts are also persuaded that the government’s inward-looking policy has been informed by past experiences particularly the servicing of a US$200 million loan availed through South African bank, ABSA for the Mutare-Plumtree highway which has become an albatross to the national fiscus ten years after the rehabilitation of the road.