The Development of the Zimbabwean Infrastructure as a Development Tool

BYNORBERT MUNGWINI

Background

• The Zimbabwean infrastructure investment was increasing from 1980 -2000; the same years were associated with the high economic growth (World Bank, 2009). Unfortunately, most of the infrastructure was destroyed by the natural disaster (Cyclone Eline) in February 2000 especially the roads, bridges, dams, telephones lines, power lines, schools hospitals and other infrastructure.

IMAGE OF CYCLONE-ELLINE DISASTER

HOYA BRIDGE

www.herald.co.zw

Background

• The reconstruction of the destroyed infrastructure coincides with the land invasion which results in the pull out of many foreign donors and also the introduction of the sanctions (targeted sanctions) which made the reconstruction difficult to be fully implemented.

Background

• After the land invasion and the sanctions, the economy started to struggle, the development of the economy declines, the currency (Zimbabwean Dollar) started to lose its power against other currencies. The unemployment increased which toughed the life of Zimbabwe this result in the brain drain where people were going to the neighbouring countries and others were going as far as the overseas.

BACKGROUND

• Due to poverty, the infrastructure which was using copper was been vandalised and they were exported to the neighbouring countries, the mostly affected was the rail transport which lost all the copper electric cables from Gweru to Harare which was being used to power the electricity train, the copper cables which was used for the communication by the personnel.

VANDALISED NRZ EQUIPMENT

Vandalized NRZ Electricity Cables

www.fingaz.co.zw

BACKGROUND

• The tough economic conditions which started in 2000-2008 mostly affected the infrastructure since the old ones were not been maintained and minimal new ones were been constructed, this ended up with some policy makers advocated for the introduction of the toll gates on the main roads so that they can get the revenue to maintain the roads.

TOLLGATENTABAZINDUNA TOLL PLAZA

www.chronicle.co.zw

PROBLEM

• This results in country lagging behind in terms of the infrastructure as compared to its neighbours. Since the introduction of the toll gates in the Zimbabwe’s main highways in 2008 there were not much improvements in the roads except for one main road which was resurfaced (Plumtree- Mutare highway).

PLUMTREE-MUTARE ROADRESURFACED PLUMTREE ROAD

www.chronicle.co.zw

PROBLEM

• Dilapidated infrastructure• Lack of investment in adequate infrastructure • Lack of confidence by the private sector in the

participation of the infrastructure development

• Reduction of the government revenue• Shortages of the infrastructure funding

NEED FOR PARTICIPATION

• Though the government and private sector have different objectives but when it comes to the infrastructure development all of them results in a provision of tangible benefits to the society which results in the economic development.

NEED FOR PARTICIPATION

• The government involves in the infrastructure development in order to improve the welfare of the society through provision of essential goods, employment creation, economic growth and others.

NEED FOR PARTICIPATION

• Private sector is much concerned about the return on their investment which is due to policies by the government and also the prevailing economic conditions. The main problem of the infrastructure development is about funding just like being faced by the economic blue print (Zim Asset) which was crafted by the ruling ZANU PF.

NEED FOR PARTICIPATION

• The problem is on the government and the private sector, the government is facing a problem on the revenue collection since there are many tax loopholes in the system which results in staff defrauding the government, other companies or individuals are being treated differently which makes the whole collection exercise complicated.

NEED FOR PARTICIPATION

• The other challenge facing the government revenue is on the reduction of the revenue base caused by the closure of many companies due to the economic challenges facing the economy. This also results in the bulk of the revenues being channelled to the civil servants salaries and living nothing on the infrastructure development.

NEED FOR PARTICIPATION

• The private sector is only facing a problem of trusting the current government since before the dollarization some companies and individuals lost their foreign currency when the reserve bank forced banks to surrender all their forex which they had and also the farm invasion.

SOLUTION

• There should be a close participation between the government and the private sector in order to meet the objective of infrastructure development.

SOLUTION

• The government should allow the private sector to play a role in the infrastructure development through crafting favourable investment policies which ensures the return to their investment and also property rights are been assured for. The private sector should be allowed to invest in the sustainable project were they get the favourable return.

SOLUTION

• Government should also improve in the revenue collection this can be done by improving the administration of the taxes, educating the clients on the importance of payment or use of their money, reducing the leakages in the system caused by the staff and other clients and also rewarding and training its employees on the importance of the ethical values.

SOLUTION

• The other factor is to lax the indigenisation policy which needs a foreign investor to have 49% ownership and 51% owned by the locals. This policy is not favourable since the locals are not affording to partner with the foreigners since they should contribute 51% the whole policy is not favouring the direct investment and it’s not being implemented equally.