HARARE Zimbabwes recovering economy will be able to absorb in the medium term thousands of workers laid off during the past decade of recession if it maintains the pace of recovery, but it was a long way off before the economy could start creating fresh employment opportunities, the government has said. According to a government policy document Government Work Programme (GWP), March 2010 the government was looking at various intervention measures to try and stimulate rapid recovery and growth in key sectors such as tourism, mining and manufacturing to try and create more jobs in a country where unemployment is above 80 percent.
Prime Minister Morgan Tsvangirai is set to present the policy document to Parliament next week.
“With formal unemployment still hovering at around 80 percent, restoring old jobs as well as creating employment opportunities remains top on the agenda of this government,” the 24-page document states.
“Hope for this to be achieved is rekindled from increasing industrial and manufacturing capacity utilisation that, in some cases has begun to breach the 40 percent levels and beyond. If this trend continues on this upward trajectory, then most of the lost jobs will be recovered in the medium term.
However, even in the long term, economic recovery and employment creation is unlikely to absorb the rapidly growing population. The GWP is therefore thinking outside the box in the areas such as mining, tourism and manufacturing in order to make a sizeable positive dent.”
The GWP, which was adopted by Cabinet last week states that increasing production in mining and tourism will be critical in driving economic growth, while unviable and unproductive state enterprises will be reformed.
The government, which is set to launch a new economic blueprint next month, says the GWP spells out agreed options, aimed at responding to political, social and economic challenges facing the country.
Once a model African economy Zimbabwe is reeling from the effects of a decade-long economic meltdown that is marked by record unemployment and deepening poverty partly blamed on company closures as the economy continued to shrink.
A power-sharing government formed last year between President Robert Mugabe and Tsvangirai saw the southern African nation post its first economic growth last year after the coalition government implemented measures, including the adoption of multiple currencies that doused hyperinflation.
The measures also improved availability of basic goods in shops although the country faces shortages of the main staple maize crop due to a poor agriculture season.
But the government remains hamstrung by its failure to persuade key Western donors to loosen their purse strings. The donors are demanding that the government carry out far reaching political and media reforms and bring an end to farm invasions before they consider releasing any money.
Post published in: News