Denys Denya
“We can succeed in spite of the prevailing headwinds and challenges we currently face, be it climate change, geopolitics, insecurity in parts of our continent or global supply chains disruptions,” he told the annual conference in Victoria Falls of the Chartered Governance and Accountancy Institute in Zimbabwe last week.
“I firmly believe that, through concerted efforts from all stakeholders, we can indeed grow Zimbabwe’s economy to achieve our 2030 ambitions,” Mr Denya, who is the Afreximbank vice-president responsible for finance, administration and banking services told delegates.
He said the journey towards achieving upper middle-class status by 2030 is multifaceted and demands strategic focus across various segments of the economy.
Mr Denya, who is Zimbabwean, said he had lived in Egypt for more than a decade and witnessed first-hand how the provision of enabling infrastructure can bring forth new business opportunities and ignite sustainable economic growth.
He said he was in the room in 2015 when the Egyptian president announced his government’s plan to build a new city near Cairo to house five million people.
“I thought it was a pipe dream but six years later in 2021 Afreximbank was able to hold its 29th AGM in this new beautiful city and we all witnessed what Africans can do when we put our minds to solving our problems,” he said.
“We have also witnessed other African nations transform their economies to achieve impressive GDP growth, and this should inspire our confidence that, with the right policy framework, robust infrastructure development, and a conducive business environment, Zimbabwe can indeed realise its full economic potential,” he added.
He said Ghana grew its GDP from US$11 billion in 2000 to nearly US$80 billion in 2021. Likewise Kenya’s GDP surged from roughly US$12 billion in 2000 to more than US$113 billion by the end of 2022. There had also been outstanding achievements in Rwanda, Ethiopia and Mauritius.
“These achievements serve as compelling examples of the immense growth potential that Zimbabwe also possesses. During this period Zimbabwe’s GDP grew from around seven billion United States dollars to approximately US$28 billion. It’s evident that our nation harbours substantial untapped potential,” he said.
Zimbabwe had undoubtedly faced significant challenges in recent years. However, it was vital to recognise, he said, that within these challenges lay unique opportunities for growth and transformation.
“To navigate this path effectively we must strategically focus on nurturing sectors which hold growth potential,” he said, adding that these sectors included mining, agriculture, tourism and manufacturing.
Zimbabwe’s mining industry, despite boasting a remarkable array of minerals, currently contributed only about 12 percent to the annual GDP, largely because it exported them raw with no or little beneficiation and no linkage to regional value chains.
“When managed strategically and sustainability these resources have the potential to drive significant economic growth,” he said.
When minerals were exported raw the nation lost value. Experts estimated that when raw materials were exported only about 10 to 20 percent of the value remained within the country’s borders. The remaining 80 percent accrued to processing countries.
“By processing lithium locally and exporting higher value products like battery precursors, we can secure a more substantial share of this rapidly growing market,” he said.
He said there was no shortage of funding for such projects even at the project preparation stages.
The country could cooperate with countries such as the Democratic Republic of the Congo and Zambia on the initiative to develop industrial parks focusing on the lithium battery chain, which would further strengthen its position in this sector. The same held true of other minerals such as chrome and platinum.
Institutions such as Afreximbank wholeheartedly supported initiatives aimed at establishing processing and smelting hubs in Africa and moving away from exporting raw minerals.
Afreximbank had supported Gabon to stop exporting logs and instead manufacture furniture and other value-added products. It had supported Benin in moving from exporting raw cotton to exporting clothing to retail shops in Europe and from exporting raw cashew nuts to exporting processed and packaged nuts. Altogether it was working on 12 industrial and export processing zones across the continent.
It was collaborating with various African governments, including those of Gabon, Benin, Togo, Malawi, Kenya and Botswana, to develop and expand industrial parks and special economic zones. Discussions were in progress for the establishment of industrial parks in DRC and Zambia for the lithium battery value chain.
To accelerate economic growth, Zimbabwe should intensify its focus on industrialisation and export development, with a key area being establishing industrial parks and special economic zones.
Zimbabwe’s tourism sector could generate billions in foreign currency, However, to realise this potential required deliberate investment in infrastructure, such as state-of-the-art conference and hotel facilities, and strategic marketing to spotlight the country’s unique offerings.
“Yet it’s important to understand that it’s not solely about attracting tourists. It’s about creating unforgettable experiences that compel them to return,” he said.
Agriculture held immense potential for propelling the nation’s growth, he said. Tomorrow’s successful agro-business demanded innovative thinking on how to maximise what the country has, not focus on what it does not have.
It was important to embrace smart agriculture and cutting-edge technology, he said. Bringing markets closer to smallholder farmers would effectively increase their productivity, enhance their returns and go a long way in addressing the logistical challenges they face.
There was a significant opportunity for private sector players and businesses to develop agricultural value chains and establish agro-processing hubs across the country, as well as build rural industrial parks.
Mr Denya listed some of the obstacles that had hindered progress over the past two decades and needed to be confronted as economic instability, inflation, foreign currency crises, political uncertainties, and the impact of the challenging global environment on the pricing of primary commodities,
“The journey towards Zimbabwe’s economic transformation is a collective endeavour that requires the active participation and commitment of all stakeholders,” he said.
