(HERALD) Africa told to debate on recession

Africa told to debate on recession
New Ziana

Zimbabwe and other African countries should stimulate debate on the global economic recession to generate strategies for mitigating its effects. Economist and Value Vest director Mr Herbert Mazonde said that Africa risked succumbing to the recession due to lack of tested strategies.

"There is need to implement long term economic programmes that would mitigate the adverse effects of the global economic recession," he said.

Mr Mazonde said the debate should focus on deploying resources that the International Monetary Fund availed to developing countries for reconstructing economies.

He said African governments and Zimbabwe in particular should channel the IMF funds into the productive sectors of the economy.

"It should be remembered that this is not a consumptive loan but meant for reconstruction," he said.

Zimbabwe received US$510 million from the IMF towards easing the biting effects of the global economic recession.

Finance Minister Tendai Biti has indicated that the funds would be channelled to key areas in the annual budget, which he would present later this month.

Mr Mazonde also urged governments to come up with consistent economic policies that boosted investor confidence while allowing long-term planning in business.

The inclusive Government in Zimbabwe should give entrepreneurs and the public, confidence that it will continue discharging its duties in line with the Global Political Agreement which gave birth to the inclusive government.

"There should be policy consistency to enhance judgment in business and boosting confidence in investors.

"Players in Zimbabwe’s unity Government should strive to cultivate confidence within the cross section of society," he said.

Mr Mazonde’s call comes at a time when the inclusive Government is hanging in the balance following the MDC-T disengagement from Government matters.

Zimbabwe, he said, could utilise its vast mineral resources to climb out of the economic crisis as well as focusing on tourism ahead of the 2010 Soccer World Cup tournament in South Africa.

"Putting in place the correct facilities in mining and tourism will reap huge dividends for Zimbabwe," Mazonde said. — New Ziana.