By Davison Vandira
The country’s productive sectors including agriculture, manufacturing and mining are driving the economy after accounting for a huge chunk of loans availed last year.
The statistics released by the Reserve Bank of Zimbabwe reveal that the figures are a direct result of the central bank’s Monetary Policy strategy to direct all excess liquidity in the economy towards productive purposes.
Agriculture, which is the country’s economic backbone, accounted for the largest share at 26.94 percent, while the manufacturing sector got 11.60 percent and the extractive sector 10.73 percent.
Economists believe the capital formation in the country’s productive sectors will strengthen Zimbabwe’s implementation of policies including the National Development Strategy One.
“The statistics by RBZ makes a good reading with respect to the attainment of National development aspirations as development of primary sectors is key to the realisation of National objectives,” says Economist, Dr Prosper Chitambara.
Economic analyst Collen Shumba added, “The well-functioning of primary industries in any economy is good and for Zimbabwe, it is critical for agriculture to be funded as it is the driver of the economy hence statistics from RBZ shows a good sign of the direction the country is taking.”
While some farmers have raised concerns over insufficient funding, they have also been challenged to pay back their loans for others to access funding.
This is in light of the recognition that increased access to finance for agriculture is a major boost towards the attainment of an eight billion United States dollar Agriculture economy by 2023.