Economic analysts laud government for enabling investments

By Davison Vandira

GOVERNMENT has been given credit for its inward looking policies in spearheading capital projects which have spurred domestic investments critical for sustainable economic development.

The Second Republic’s infrastructure development agenda has been punctuated by its signature project; the rehabilitation of the Beitbridge-Harare highway, where local contractors have so far completed 400 km.

Despite giving the highway a facelift, the project has become a real stimulant for downstream and upstream industries.

The latest testimony of domestic capital formation triggered by government spending on capital projects is the acquisition of Lafarge by a local consortium which is set to enhance efficiency of the entity.

Economists are convinced the inward looking investment policies are key for economic development and a sure way of eliminating externalisation of key resources, including foreign currency.

“We are gratified by government’s stance on looking inward for huge capital projects because it removes the burden the economy carries when it comes to financing the foreign currency obligations to service such loans. Furthermore we have witnessed capital flight in the past and therefore under these circumstances ,domestic investment is the way to go,” said Economist, Mr Kipson Gundani.

Harnessing of domestic capital for Zimbabwe is imperative in that for long periods, the country has been isolated from key sources of finance hence local resources become critical for the economy to achieve its economic objectives, added Investment Analyst,” Mr Batanai Matsika.

Analysts are also convinced that government’s inward looking policy is key to preventing possible capital flight, a characteristic of foreign investment which may be detrimental to the current economic trajectory.

The post Economic analysts laud government for enabling investments appeared first on ZBC NEWS.

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