Zim needs $10bn to kick start economy: Economists

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ZIMBABWE needs at least $10 billion to kickstart the economy which is currently in comatose following the controversial July 31 2013 elections, an economist has said.

MTHANDAZO NYONI
OWN CORRESPONDENT

Speaking at a business symposium organised by Marketing Association of Zimbabwe last week, economist and managing director of Integrated Advisory Group, Collen Mugodzva, said Zimbabwe should be in good books with countries around the world for the betterment of the economy.

“Since last year in September the economy has been volatile and unpredictable. There is tight liquidity and this has impacted on banks which cannot give credit. No one can blame banks for that because the economy is very volatile,” Mugodzva said.

“There are issues of policy inconsistency affecting foreign direct investments (and) for Zimbabwe’s economic situation to be rectified, we should have at least $10 billion. For this to happen we should be in good books with investors from all corners of the world,” he added.

Mugodzva said the future of Zimbabwe lay not in mining, but in the manufacturing industry.

He encouraged businesspeople to invest in manufacturing to counter negative economic forces.

The country, whose economy is stagnant, desperately needs foreign direct investment to rescue the economy which is in a tailspin, he added.