Six percent growth rate still achievable despite late rains, Mthuli

14 Jan, 2025 - 17:01 0 Views
Six percent growth rate still achievable despite late rains, Mthuli

Business Writer

Finance, Economic Development and Investment Minister, Professor Mthuli Ncube, insists a growth rate of about 6 percent is still achievable this this year despite the country receiving late rains.

He, however, could not rule out the possibility of downgrading the growth rate since his assessment is based on prevailing weather conditions.

Mthuli revealed current rains have rejuvenated hopes for a better harvest following a dry spell at the beginning of the season late last year.

“If the weather patterns continue on this kind of trajectory, we should be able to achieve or at get close to achieving 6 percent target rate of growth this year, which is going to be a recovery following a drought year. We are very bullish about the economy,” Mthuli said.

He revealed on the sidelines of a tour of a food processing production line at Sunway City on Tuesday being set up by local company, Glytime Foods.

“We have had a late arrival of rains. We are obviously waiting to see the full impact of this on agricultural output, which is critical to our recovery strategy and our projections. So, we will be able to assess, I would say, four months from now, as to what that output looks like and then be able to say whether we maintain the 6 percent rate of growth or not. But for now, we maintain it, because the rains have been very good of late, and that should give us a good harvest.”

Last year, Zimbabwe experienced an El Niño-induced drought considered the worst in 43 years.

The severe drought significantly impacted agricultural production and productivity, resulting in economic growth of only 2 percent.

While the El Niño season affected the entire Southern African region, Zimbabwe was among the most severely impacted countries.

Agriculture dominates Zimbabwe’s economy and through its various establishments, the industry is one of the biggest employers in the country.

It is at the center of the matrix of the economy by virtue of its central position within the value chain.

As such, it is critical to note that agriculture is not the backbone of the economy on the basis of its contribution to the gross domestic product, but on the basis of its position within the value chain of major sectors of the economy, particularly manufacturing.

Through backward and forward linkages between agriculture and other economic sectors is what forms the sector the mainstay of the economy.

 

 

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