Zimbabwe’s Economy

Table of Contents

1. Frontmatter

2. Becoming a Sovereign State

   1. Frontmatter

   2. Chapter 1. 18 April 1980, Dawn of a New Era?

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      This chapter tackles three thematic areas. Briefly, it outlines the short-lived bubble of expectation in people ushered by the first economy of Zimbabwe post-independence. It was the dawn of a new era. With the majority rule came the hope of a better country in which everyone has a fair share of the national cake. An inclusive economy in which living standards of people would improve was one of the aspirations of the people post-independence. The inherited jewel economy did not last. Like other post-independent African states, challenges would soon follow. One after the other, the chapter examined the performance of Zimbabwe in selected macroeconomic areas such as corruption, ease of doing business as well as foreign direct investment, debt and currency stability. Most importantly, comparisons are made with selected peers in the continent. The resulting gap between Zimbabwe and the peers reveals an economy which has largely struggled as will be fully explored in later chapters in other parts of the books. In the chapter, the narrative of Zimbabwe’s economic struggles is well documented in the media both local and international. A synopsis of several headlines covering a wide range of economic issues is captured to give a general picture of the unfolding challenges through time. Notably issues such as struggling workers and masses, currency crisis, inflation, land reform, infrastructure and sanctions take centre stage in the timeline of selected headlines. The chapter winds up by exploring the role of music and arts as Zimbabwe’s economic history unfolds. The contribution of this key sector helps to further illuminate the multi-layered nature of Zimbabwe’s economic challenges in the past four decades.

3. Unpacking a New Zimbabwe and Taking Charge

   1. Frontmatter

   2. Chapter 2. Early Years of Post-independence Zimbabwe

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      The goal of this chapter is to look into early post-independent Zimbabwe. This marks an important period in that it ushered in the first economy. For instance, the main orientations of the post-colonial education reforms were guided by democratisation of access to education and localisation of curriculum and examinations. Key policy initiatives included the introduction of free and compulsory primary education, the removal of age restrictions to allow over-age children to enter school, the encouragement of community support for education and automatic schooling progression, for primary-grade school children entering secondary school. In the health sector, the majority of the black population gained access to basic care and government launched a range of cost-effective preventive health programmes. The land reform programme was targeted at the landless and war veterans. Land reform was in two phases, the Land Reform and Resettlement Programme I from 1980 to 1998 and the Fast Track Land Reform Program since 2000. Agricultural policy was directed to reducing inequality and to supporting smallholders. The major significant change in the agriculture sector was increased capital intensity of production. Small-scale black farmers with access to good land and productive resources responded remarkably to new production opportunities.

   3. Chapter 3. Achievements Over the Four Decades and Looking Ahead

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      Zimbabwe has made a number of achievements despite the difficult journey travelled over the past four decades. The chapter examines milestones attained over the past four decades. Developments were made in amending and enacting legislations to advance the gender equality and objectives at ensuring equity. The government ratified most of the international conventions including the Convention on the Elimination of all Forms of Discrimination against Women (1991), the Beijing Declaration on the Platform for Action (1995), the Convention on Civil and Political Rights, and the Equal Remuneration Convention. Zimbabwe has also endorsed the protocol to the African Charter on Human and People’s Rights on the Rights of Women, the 2004 Solemn Declaration on Gender and Equality in Africa, the Southern African Development Community’s Gender and Development Protocol. Zimbabwe has also endorsed the COMESA Gender Policy which fosters gender equality and equity at all levels of regional incorporation and cooperation. In sum, the enactment of legal frameworks, policies and strategies in education, women rights, women in decision making, reproductive health, HIV/AIDS, gender equality and equity, children and youth are major milestones achieved by Zimbabwe. These policies and legislative framework and the social, economic and political developments provided a firm basis to pursue other key aims such as gender equality and equity.

   4. Chapter 4. Policy Execution Dilemmas Over the Years

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      The chapter delves deeper into numerous policy missteps experienced by Zimbabwe like other post-independent colonial states. With numerous aims and objectives targeted at improving the economy, the policies did encounter setbacks. The policies included: the TND which was anchored on post-war reconstruction, the first FYDP, second FYDP, health policy, National Gender Policy and ESAP. ZIMPREST came after ESAP. Both ESAP and ZIMPREST lacked local ownership and were viewed as IMF and WB imposed. Other economic programmes were MERP. MERP was hinged on the fiscal policy adjustment targets under ESAP, ZIMPREST and the Millennium Budget of October 1999. NERP launched in 2003 had the objective to provide humanitarian support in the face of drought. Both NERP and MERP failed due to loss of macroeconomic balance. In 2009, STERP I was launched with the aim of stabilising the economy. The major achievement of STERP I was the rapid reduction of inflation due to the adoption of multicurrency. STERP II had a three-year macroeconomic policy and budget framework. MTP’s theme was to transform capacities for sustainable economic growth. Its objectives were, among other things, infrastructure development. Other policies that came after MTP were ZIMASSET, IDP, NTP and NIDP.

4. Writing on the Wall…Stoking the Fires of Economic Turbulence

   1. Frontmatter

   2. Chapter 5. Making or Breaking Zimbabwe: 1987–2020 Issues

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      Changes in episodes caused by natural disasters or policies have a bearing on the overall performance of any economy. This chapter explores issues that had an impact on Zimbabwean economy through the country’s history from 1987 up to 2020. Historically, Zimbabwe went through various episodes and policies that negatively affected its economy and ultimately its citizens. These episodes include cycles of drought, currency crisis and cyclones in the early 2000, economic structural adjustment programme in the early1990s, disbursement of war veterans’ gratuities in the late 1990s, the black Friday, labour unrest and food riots, land reform, the Look East Policy and the diamond rush in Chiadzwa. It is evident that the unfolding of these events or episodes negatively affected the Zimbabwean economy. Some of the after effects from these episodes that contributed to the poor performance of the country are still ravaging the economy even up to today. Examining each of the episodes provides a solid understanding of the issues at stake that impacted the Zimbabwean economy. Additionally, it offers a classic example of how a developing country can miss a golden opportunity to curve a sustainable development trajectory.

5. On the Edge of a Cliff…Crisis within a Crisis!!

   1. Frontmatter

   2. Chapter 6. ‘Jewel of Africa’ Peeled: Four Blunders Over the Four Decades

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      This chapter focuses on four areas which the country failed to take advantage over the past four decades. The net effect has seen the economy failing to realise its full potential in terms of growth and sustainable development. Specifically, the chapter dissects demise of growth points, failure to embrace industrial clusters, weak social security nets and dependence on aid in development as the Achilles heel to the real transformation of the economy, issues which are often overlooked in Zimbabwe’s economic history. The growth point strategy of the colonial past and the first economy are compared drawing lessons on how growth point strategy could have been leveraged to also develop the rural economies. Similarly, lost opportunities through lack of robust cluster strategies are explained as well as strategies for efficacy of the strategy. In the chapter, two types of Aid are explored and how they have not helped much for the development of the country. The chapter also elucidates how weak social security has also contributed to the development currently obtaining for the country. While acknowledging several attempts to put in place social security systems to cater for mostly the vulnerable people, the chapter looks deeper into the resulting challenges at the backdrop of absence of robust systems. Drawing from lessons in peers in the continent and beyond, the chapter shows how weak social security nets is among the blunders committed. The chapter concludes by locating a nexus in the four blunders and development trajectory of Zimbabwe post-independence.

   3. Chapter 7. Sinking Further

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      The primary focus of the chapter is to unpack emerging factors in the context of the Zimbabwean economy. These are: emergency of disillusioned millennial generation, rise of Pentecostalism against the worsening economic problems, primary commodity dependence and climate change as well as the cancer of corruption. The chapter clearly shows how these various issues contribute to the complexity of daunting socio economic problems bedevilling the Zimbabwe. Millennial generation is key for the development of any economy given their attributes as critical thinkers, change makers and entreprenuers . In the midst of debilitating economic challenges, the youth of the economy are also paying a price, the consequences are felt by the economy. Further, the chapter looks at the emergency of Pentecostalism movements and their impact on mostly ordinary people as they seek answers to some of the economic problems. Long-standing structural issues of Zimbabwe such as primary commodity dependency are examined in the chapter. Of note are the various missed opportunities the economy has lost on the global stage due to this status such as missing out on integrating value chains, better-quality jobs and also outsourcing opportunities. In addition, the issue of cancerous corruption deep seated in the economy of Zimbabwe is assessed in the chapter. Resolving the development conundrum of Zimbabwe will also rest on how corruption is decisively dealt with.

6. Re-wiring Zimbabwe…Attempting to Make Things Work

   1. Frontmatter

   2. Chapter 8. The Foot on the Pedal

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      In the chapter, a number of selected flagship projects currently underway in the economy are highlighted. Their main aim being to breath a new lease of life to the economy. For example, in 2018, through the Public Sector Investment Programmes (PSIP) and the Emergency Road Rehabilitation Programme (ERRP) $175 million towards several infrastructure projects. At a macro-level the upgrading of the Chirundu Beitbridge highway amounting to USD 400 million at the time of writing of this chapter is a significant milestone. The chapter also looks at developments in other sectors such as agriculture as well as energy, all aimed at rewiring the economy. However, the chapter highlights two fundamental concerns towards the various efforts at reviving the economy: (1) Whether the foot has enough energy which it carries with it as it presses on the pedal? and (2) Whether the foot will be able to press on the pedal consistently so as to apply balanced pressure as the economy is steered out of the many challenges. Consistence, transparency and commitment will be instrumental in ensuring that the economy recovers the lustre of the days gone by. The chapter winds up by exploring how inflationary pressures building up, alongside revenue leakages through smuggling and corruption are serious headwinds which have the impetus to disturb the foot on the pedal.

   3. Chapter 9. Critical Lessons for Other Post-Independent African States

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      In this chapter, important lessons are devoted to other post-independent African states which are still in pursuit of sustainable development. However, before a full discourse on these, the chapter outlines eight fundamental questions which relate to Zimbabwe’s economic history. These are an important precursor to the discourse of the detailed lessons which follow later. For instance, in Fundamental Question 2, the authors ask Will Zimbabwe be able to salvage lost decades of development? This and other questions present important points of reflection on the narrative of Zimbabwe through time. Detailed lessons drawing from the narrative of Zimbabwe own experience follow. Lessons include: inspirations from the Dream Team, residuals effect, crisis begets a crisis as well as arrested development. Later on in the chapter, a detailed analysis of the case of Venezuela and similarities with Zimbabwe’s current predicament is also presented.

   4. Chapter 10. Migration, Empowerment and Zimbabwean Women

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      Over the four decades of the Zimbabwean narrative, women have also been greatly impacted by the unfolding socio-economic challenges. One coping strategy by women has been to migrate to neighbouring countries, regularly or irregularly. Have they been empowered that much? The chapter locates the theme of women and empowerment in migration literature. The primary focus is to examine the indicators of women empowerment, its causes and the role of government and societal dynamics in the phenomena. Literature shows that decision making at household level, control of assets are among other metrics used to benchmark women empowerment. Factors such as conflict, migration of men as well as demand for domestic work are some of the factors stimulating migration of women resulting in their empowerment as well as disempowerment. Government and societal dynamics are also key in shaping women empowerment trajectories. Furthermore, literature shows that empowerment of women can be transitory and its outcomes can also be mixed. The chapter winds up discussions by examining the major policy implications of how migration is affecting women migrating from Zimbabwe in an attempt to also cushion themselves against the socio-economic challenges.

   5. Chapter 11. Further Issues

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      The Zimbabwean economy continuously faces challenges. With quite a number of developmental issues still unresolved, emerging issues are also piling pressure as this chapter will show. Some of the issues are also linked to the various thematic areas largely explored in the previous chapters of the book. Critical emerging issues which are likely to enter as arguments in the development journey of the country as discussed in this chapter include; the pervasive problem of drug and substance abuse among especially young people, outstanding institutional reforms, informalisation of the economy as well as the plight of the weak and vulnerable members of the society. For instance, the (Ministry of Health and Child Care (2023) Drug Problem from US to Zimbabwe) shows that the problem is common among the young people, 15–19-year-olds. Dealing with this scourge requires also substantial resources which the country does not have. On the other hand, in the chapter, we argue that given the state of incapacitation of the economy in its present state, the weaker and vulnerable have not been spared of the challenges. This also adds on to the complexities of the challenges the country still finds itself in.

   6. Chapter 12. Conclusion

      Kenneth Mahuni, James Zivanomoyo, Puruweti Siyakiya, Simba Mutsvangwa

      Abstract

      The chapter sums up main issues highlighted in the rest of the book. Special focus is on how the challenges of the past four decades have in fact cost the economy. The costs have manifested for instance in terms of loss of incomes, infrastructure gaps, loss of human capital and missed opportunities in terms of growth and development of the country to sustainable levels. Featured in this chapter also is a reflection on how the country’s mixed and often turbulent experience has impacted. Also featured in the chapter are key highlights of Chaps. 4, 5 and 6 in order to tie together the theme of turbulence which is strongly highlighted in these chapters. The chapter also winds up by exploring how the various socio-economic challenges Zimbabwe has faced over the past four decades have created a huge black hole for the economy. Inside the hole are the obstacles we have seen, in particular in much of Part III and IV. Despite all the challenges of the years, the chapter argues on the possibility of trumping the challenges which have accumulated over a long time.