(TALKZIMBABWE) Zim economy greatly improved, says Biti

Zim economy greatly improved, says Biti
Mutsawashe Makuvise
Mon, 13 Jul 2009 09:36:00 +0000

ZIMBABWE'S economy has greatly improved its performance since the formation of the inclusive Government in February, Finance Minister Tendai Biti said on Friday.

Biti told delegates at the end of a two-day Zimbabwe International Investors Conference that the economy was envisaged to register a growth rate of between five percent and eight percent in the next five years if it receives the necessary support.

"If you are going to judge us by our figures only and not the politics, this economy is performing," he said. "The reason why some think we are not moving is ignorance. We have made progress," he added.

Biti said Zimbabwe was an attractive destination for investment with one of the best company tax regimes in the world.

"Our company tax regime is second to none," he said, adding that the only problem that Zimbabwe had faced in the past was bad politics and not policies.

Investors had continued to make returns even during the period of economic instability, he said, adding the inclusive Government had to date stuck to its word that it would operate on a cash budget.

"We have consistently stuck to eating what we have gathered. We have not borrowed from anyone," he said, vowing the financial discipline would continue.

Biti said foreign direct investment, revamping the agriculture and manufacturing sectors were critical for the economy's success.

Technological advancement, policy consistency, peace and stability were also important factors for a successful rebounding of the economy, he said.

Meanwhile, the minister said over 142 million US dollars would be channelled to small holder farmers for the summer cropping season to boost agricultural production.

Over one billion dollars in credit lines had also been secured to boost production in the manufacturing sector.

Zimbabwe's economy, Biti said, had not been seriously affected by the global credit crunch, adding that the country could take advantage of the recession to position itself as an attractive investment destination.

The investor conference was attended by such countries as Germany, Ukraine and Mozambique, and sought to project Zimbabwe as an attractive investment destination.