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The Risk Of Leaving Everything To Be Done By The Government Of Zimbabwe
By Michael Tichareva
It has been a momentous week and a momentous month in the public space of Zimbabwe – what with the launch of the Zimbabwe Gold Backed Currency, and the same month when Zimbabwe celebrated 44 years of Independence.
The question on the DSE News Network this week is: What roles should Zimbabwean citizens play in fixing Zimbabwe?
Before we even think about fixing Zimbabwe, many people ask what are the main areas that one can get involved in Zimbabwe’s economy – in order to play a meaningful role.
Here are the main investment opportunities currently in Zimbabwe, and the expected risks and return.
The Opportunities
Zimbabwe offers a range of investment opportunities across various sectors, but be aware of the associated risks and potential returns.
Some key investment areas to consider, along with their potential risks and returns include:
1. Agriculture: Opportunities exist in commercial farming, agro-processing, and value-added products. Risks include weather-related factors, infrastructure challenges, and potential political instability. Returns depend on commodity prices, yields, and operating efficiency.
2. Mining: Zimbabwe has rich mineral resources, including gold, platinum, and diamonds. Risks include regulatory uncertainty, infrastructure constraints, and political instability. Returns depend on commodity prices, extraction costs, and operational efficiency.
3. Energy: Opportunities exist in renewable energy, power generation, and distribution. Risks include regulatory uncertainty, infrastructure constraints, and financial stability. Returns depend on electricity tariffs, demand, and operational efficiency.
4. Tourism: Zimbabwe has a diverse range of tourist attractions. Risks include political instability, infrastructure constraints, and competition from neighboring countries. Returns depend on tourist arrivals, exchange rates, and operational efficiency.
5. Construction: Zimbabwe’s infrastructure development presents opportunities in residential, commercial, and public construction projects. Risks include economic stability, political instability, and funding constraints. Returns depend on project scope, timelines, and operational efficiency.
6. Financial services: Opportunities exist in banking, insurance, and microfinance. Risks include regulatory uncertainty, financial stability, and currency risks. Returns depend on interest rates, loan portfolios, and operational efficiency.
7. Manufacturing: Zimbabwe offers opportunities in food and beverage processing, textiles, and chemicals. Risks include economic stability, political instability, and competition. Returns depend on product demand, operational efficiency, and market conditions.
8. Information technology: Zimbabwe’s growing technology sector offers opportunities in software development, mobile applications, and digital services. Risks include infrastructure constraints, funding, and competition. Returns depend on product demand, innovation, and operational efficiency.
So how does one play a role?
Zimbabwean citizens have an important role to play in the process of fixing Zimbabwe’s economic and political challenges.
The main ways in which citizens can contribute include the following:
1. Engagement in political processes: Citizens should actively participate in the political process, including voting in elections, driving political parties, and advocating for policies that promote good governance and economic stability.
2. Entrepreneurship and innovation: Citizens should create new businesses and develop innovative solutions to economic challenges, creating jobs and driving economic growth.
3. Demand for transparency and accountability: Citizens should demand transparency and accountability from their elected officials and government institutions, and report instances of corruption or mismanagement.
4. Education and skills development: Investing in education and skills development should help to create a more skilled workforce and improve the country’s competitiveness in the global economy.
5. Community engagement: Citizens should work together to address local issues, such as improving access to clean water, healthcare, and education.
It remains an undeniable fact that Zimbabwe’s success heavily depends on the active participation and engagement of its citizens in driving positive change.
What are the main risks of leaving everything to Government
Leaving everything to Government poses several risks – and that is where many of the readers on the DSE are asking questions:
1. Lack of accountability: When citizens are not actively engaged in decision-making processes, there is a risk that government officials may act in their own self-interest, rather than in the best interest of the country.
2. Inefficient resource allocation: Without input from citizens, the government may not have a clear understanding of the needs and priorities of different communities, leading to inefficient allocation of resources.
3. Stifled innovation: When the government has a monopoly on decision-making, it will be less likely to consider new and innovative solutions to economic and social problems.
4. Slow progress: Government bureaucracies are slow and cumbersome, leading to delays in implementing needed reforms and improvements.
5. Political instability: If citizens are not satisfied with the government’s performance, this can lead to political unrest and instability, which will further undermine economic growth and development.
So leaving everything to government in Zimbabwe is not an option, as it is risky and can hinder the country’s progress towards a more prosperous and stable future.
Till next week. Cheers
Michael Tichareva is the Managing Director of National Standard Finance Africa and the Executive Chairman of its affiliate, Claxon Actuaries International. He can be reached on mtichareva@natstandard.co.za or michael.t@claxonactuaries.co.za. The views expressed are his, and do not necessarily reflect the editorial position of the Sunday Express and the DSE News network.
