Zimbabwe - economy

Zimbabwe launches six-year plan to transform economy

Article published on the 2009-11-10 Latest update 2009-11-10 19:30 TU

A 100 000 000 000 00 Zimbabwean dollar note. Economy Minister Elton Mangoma has ruled out a return to the country's hyperinflated currency as part of plans to promote growth.
(Photo: rights reserved)

Zimbabwe has launched a six-year economic blueprint aimed at reviving the country's moribond economy. The plan seeks to improve the investment climate in the country, starting with the signing of an investment deal with South Africa, expected later this month.

The Minister for Economic Planning and Investment Promotion Elton Mangoma unveiled the plan in Harare on Monday.

Mangoma told RFI that the strategy was designed to end Zimbabwe's reliance on its raw materials, which have traditionally been its main source of income.

"We are going to see a transformation of the Zimbabwean economy, from largely relying on primary products [...] to value-added manufacturing through the adoption of new technologies, so that we beceom a global competitor," he says.

Mangoma also rules out any return to the local currency banished in January due to hyperinflation.

He believes Zimbabwe can fast track its economic recovery through the multi-currency system marked by trading in US dollars and the South African Rand.

Zimbabwe's economy is expected to post a 3.7 per cent growth rate this year, the first positive figures in a decade, according to the International Monetary Fund.

With the new strategy in place, Mangoma is hoping for 12.5 per cent growth in gross domestic product in 2010.