Struggling F/town unexcited over budget
Chakalisa Dube | Friday January 29, 2021 16:35
Ebrahim shared his views this week in an interview with Mmegi. The Minister of Finance and Economic Development, Thapelo Matsheka is expected to deliver the country’s budget speech for the 2021-2022 fiscal year on Monday.
The second city’s economy took a knock several years ago when Tati Nickel Mine closed its doors as part of the group-wide collapse of BCL Ltd. The city’s other important economic pillar, retail trade, has since suffered as the purchasing power of Zimbabweans and Zambians has dwindled due to frequent border closures. There has been little activity with some retailers saying their sales have gone down by 50%.
The coronavirus (COVID-19) has caused frequent interruptions in borders amongst the three countries and since early January, the Zimbabwean and Zambian borders remain closed.
“It is a given that the government will significantly cut development spending and focus on other competing priorities, especially dealing with COVID-19,” Ebrahim told Mmegi.
“The economic outlook is also not very promising, which is why I do not think that the budget will inspire any confidence.
“I do agree that the pandemic has worsened the city’s economy, which has been ailing for years.
“I assume that there will be no particular focus (from the budget) on reviving the city’s economy.”
Ebrahim, who is also a former Business Botswana president, noted that a cut in development spending would mean that some projects and initiatives that could have helped to revive the economy of the city as well as create jobs, would be shelved.
According to Ebrahim, to curb job losses and avoid a total collapse of the city’s economy when the State of Public Emergency ends, the government should engage Zimbabwe and Zambia to consider opening their borders in an extraordinarily coordinated manner. “Of course this will be an interim strategy to cushion the city’s economy from a total collapse and to protect jobs,” he said.
Ebrahim stated that COVID-19 has shown the extent of the vulnerability of the city’s economy. He added it is vital for the government, in collaboration with other stakeholders, to urgently come up with a robust longer-term strategy to revive and sustain the city’s economy.
“There is urgent need for various stakeholders to come together and devise strategies to boost the economy of the city.
“Too much reliance on retail activity supported by Zimbabweans and Zambians is not ideal.
“We urgently have to establish a few manufacturing and processing industries in the city.
“This would inevitably create sustainable jobs.”
Ipopeng ward councillor Lesego Kwambala, who also heads the Francistown City Council finance committee, said he expected the bulk of the budget to go towards fighting COVID-19.
“It is now time for key stakeholders in the city to think outside the box and come up with measures meant to revive its economy.
“We have been preaching Private-Public Partnerships.
“It is now time to start pursuing them.”