harare city.jpgThe Mid Term Fiscal Policy Review Statement presented yesterday by Finance Minister, Mr. Tendai Biti has been met by business stakeholders with mixed reactions.

 

Some applauded the Minister while others say there is need to focus on harnessing of local resources instead of depending on foreign lines of credit which are not available.

The Mid-Term Fiscal Policy Review which focused on regenerating growth, revising 2009 projections and retargeting government efforts has drawn varied reactions from the business community.

 

This follows a reduction in the anticipated growth rates for most sectors, including manufacturing which initially had been projected to grow by 10% but has been revised downwards to 4,5 percent.

 

Mining which was anticipated to grow by 31 percent has also been revised downwards by 9 percent, while power generation was also revised downwards from an expected 3.5 percent growth to 1.8 percent among other sectors.

 

Economic growth was revised downwards to 5.4 percent from 7 percent.
 
Business man Mr. Larry Mavhima said there is need to harness revenue from the mining sector which recorded disproportionate tax contributions.

 

An Economic Analyst, Mr. Christopher Mugaga said the budget is more of an acceptance that the economy is experiencing difficulties from stabilisation to growth.

 

The Deputy Minister of Industry and Commerce, Cde Mike Bimha said the low amount of external support amounting to US$207 million is a clear indication that locals have to go it alone instead of relying on foreign assistance.

 
Minister Biti highlighted that a change of mindset among local business players will be necessary to reign in inflation which has been on the rise since January.

 

Inflation rose from 0.6 percent in January this year to the current rate of 6.1 percent.