By Davison Vandira
ECONOMIC analysts have commended the stability in the fuel sub-sector for driving economic activities throughout the 2021 financial year thereby contributing to overall GDP growth.
Energy provision, particularly fuel availability in Zimbabwe, is a key source of economic growth due to its strategic value chains from production to distribution of goods and services.
Economic studies have revealed that fuel consumption has a high positive correlation with economic growth and with Zimbabwe requiring at least five million litres everyday, the consistent supply of the commodity has had a positive ripple effect on the economy’s development matrix for the year under review.
It is this understanding of the nexus between economic development and fuel availability that has seen analysts commending government for the sanity that prevailed throughout the 2021 financial year.
“Fuel supply was very consistent and the fuel queues were invisible during the year. This has positively impacted on the levels of production and productivity in various industrial sectors. Besides it being important as a key factor of production, its consistent supply ensured that the human capital does to forego its productive time due to time spent on fuel queues as what happened the previous year,” said Titus Mukove an Economist.
The introduction of the Direct Fuel Import scheme liberalised the sector and sanity prevailed, a situation which led to Zimbabwe meeting its growth target of 7.8 percent this year.
The fuel industry stability also supported thousands of jobs directly and indirectly in various sectors including tourism, manufacturing, agriculture and mining, hence the importance of preserving energy security going into 2022 to ensure the smooth implementation of the National Development Strategy One.
By Davison Vandira