Tradeinvestsa, 17th February 2010
Quoted: Steven Ombati, Senior Analyst (Africa) – Frontier Advisory
Zimbabwe is emerging from its lost decade and is ripe for growth after years of severe economic decline, says Steven Ombati, a senior analyst at the leading business consultancy, Frontier Advisory. This statement was delivered during Ombati’s speech at Wesgro’s Export Development Programme (EDP) 3 seminar held on 11 February 2010.
Leading business analysts and local export authorities attended the Wesgro initiative which gathered over 180 local companies at Hotel Le Vendome in Sea Point to address the realities of the economic situation in Zimbabwe.
The seminar tackled a number of pressing issues and concerns within Zimbabwe.
Topics of discussion included the Macro-Economic Overview of the Situation in Zimbabwe (Frontier Advisory), Zimbabwe Market and Logistics (CDT), Financial Risks (Ernst & Young) and the Potential Trade and Sector Opportunities for Exporters in Zimbabwe (the dti).
According to Ombati, Zimbabwe’s economy last year grew for the first time in about 10 years and the country was expected to show further growth in coming years. He said despite challenges around governance, deteriorating infrastructure and funding, Zimbabwe could not be ignored in southern Africa due to its size, geographic location and wide array of natural resources.
Ombati, whose organization helps companies get to grips with emerging market economies, said it was also in South Africa’s best interest that Zimbabwe succeeded. He noted that the Zimbabwean government had put a number of steps in place to stabilize and revive the economy, including lowering corporate taxes and introducing a multiple currency system in order to curb inflation.
The Zimbabwean government in its Short-Term Economic Recovery Plan (STERP) had estimated growth of 7% for 2010 and 6.3% for next year and the year after, far above estimates of about 2 % for South Africa for this year. Ombati said that the funding for this growth remained a challenge, the government hopes to raise U.S. $25 billion by 2012, about five times the current size of the economy, but overall he was optimistic about Zimbabwe’s prospects.
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