1) The document discusses Zimbabwe's economic development plan called ZimAsset and argues it should better incorporate the role of the Zimbabwean diaspora. 2) It notes that diaspora remittances are a major source of foreign currency for Zimbabwe and that most remittances are through informal channels. 3) It recommends establishing an institutional framework to better understand and utilize diaspora remittances to support economic growth, including collecting data and channeling funds through the financial system.

1. ZIMASSET - A DIASPORA PERSPECTIVE
I have had brief time to peruse the ZimAsset Blueprint and wish to commend my
comrades at home for putting together such a comprehensive document which is
the fishing rod for the "Party" to exercise the mandate handed on the 31
July electoral victory. The document has been adopted by Cabinet and as such is
now an implementation authority and guiding principle for the State machinery.
I however need to make some observations which will only serve to make this
document more strengthened by way of re-envisioning constructive criticism that
will maybe form part of its monitoring and evaluation mechanism. The document
lacks mention of the key role of the Diaspora in underwriting its successful
implementation. At the recent Diaspora engagement meeting with Hon Minister
Mzembi, Diaspora remittances were recognised as the biggest revenue input
contributor to the Consolidated Revenue Fund, with remittances from Tourism
being the second significant contributor. What this means is that a lot of work
needs to be done to understand the nature and relevance of Diaspora
remittances and how this feeds into the National Development plans.
How can the Diaspora investments be harnessed to contribute positively to
building an income earning structure for the country as opposed to misdirected
investment that is more consumptive in nature and hopefully explore a way of
supporting Diaspora to invest in sustainable projects that promotes the govt's
growth trajectory? According to previous studies, an estimated 67% of
remittances to Zimbabwe are channelled through informal means. As the
Diaspora, we stand ready to support the initiatives to lobby for the removal of US
Sanctions, an albatross hindering the effective implementation of the ZimAsset
strategic action plans to revive the economy.
Previous studies carried out have made recommendations for the establishment
of a Diaspora Engagement and Institutional Support Framework to cement this
strong bond. Due to deficiencies in official data on remittances, it is currently
difficult to analyze the macroeconomic impact of remittances on growth and
poverty reduction. The Institutional framework which can be done in conjunction
with the UZ and Central Statics Office to improve on data collection and reporting
systems on remittance flows might help to better understand the flow and impact
of both formal and informal remittances. "Despite the lack of official statistics,
migrant remittances are a major source of foreign currency as international
balance of payments support has dried up. Various studies have established that
remittances have helped the Zimbabwean economy to remain afloat despite the

2. negative performance of all other economic sectors. With deliberate fiscal and
monetary policies, remittances could be channelled towards local industry
through lines of credit and thus help revive local production capacity. "
With proper engagement that guarantees protection of investment and recourse
to dispute resolutions, we can predict to see more investment being directed to
key sectors of the economy. We have engaged the embassy to host a trade and
investment conference on May 24-25, 2014 and these are part of broader issues
which we are focused on under the auspices of the Zimbabwe Business Network
(ZBN). Item 2.6 acknowledges that there was a significant flight of skills resulting
of effects of the illegal sanctions and it fails to look further and appreciate that
this is an opportunity to turn around this brain drain to a brain gain that can be
used positively to redress economic performance. The country is fast becoming a
dumping ground for Japanese vehicles due to lack of synergy with the Diaspora
leading to unwise investment to hard earned incomes. If 2 million people in
Diaspora all buy a Kombi, this means we will end up saddled with more cars than
commuters and harnessing these resources can prove critical to the long term
development of the nation. It may wise to tap into coordinated investments that
helps drive the economy.
The document appears to be more focused on the co-ordination of govt-centric
activities and feel it should do more to encompass manufacturing and productive
sector growth that is needed to kick start this ailing economy. Item 3.12 on
sustainability of Agriculture, there is emphasis on the Presidential Inputs scheme
to help farmers and to write-off as irrecoverable electricity debts US$80m, and
while this is politically prudent, it is crippling the farmer work mentality to be
efficient and productive to the extent of being self sufficient. This has seen the
slackening of capacity land utilisation resulting in the productivity substitution in

3. favour of contract farming deals. The overall effect is the dwindling the national
strategic grain reserves precipitating reliance on foods imports. Item 7.12 on
"Quick wins for the food security and nutrition cluster", states as its first priority,
"To intensify collection of maize from Zambia and redistributing to needy
provinces,” again while this acknowledge the required shortfall in production, this
is pre-empting a national dependency culture.
Do we have proposals to mitigate these challenges in the long run? This trajectory
is certainly not sustainable and came as no surprise when Zambia decided to
cancel earlier this year, the standing grain import agreement, a development
which extraordinary diplomacy manoeuvres to resuscitate the deal. (1)
( http://zimbabwe-president-robertmugabe.rsspump.com/?key=20131027124849.crisis-zambia-cancels-maize-deal)
(2) http://www.thestandard.co.zw/2013/10/27/zambias-michael-sata-goes-backmaize-promise-mugabe/ As a result ZimAsset at review stage needs to reassure us
that this situation is being seriously addressed, this is what will resonate with the
people as they get empowered to be the masters of their own destiny.
The document has reassured us that the multi-currency regime will be
maintained, but how is this sustainable in the long run without being a draw back
to our own growth projections. The recent slump in the US$ against the rand has
already started to distort trade with South Africa as the rand is now trading firmer
meaning the rand is buying more goods and boosting trade balance in favour of
South African Traders. The shortage of US$ notes in circulation is another
unintended consequence of using the dollar and of cause the diplomatic farce it
dangles with the "sanctions" debacle. There is need to quantify the value and
effects of lost business opportunities resulting from lack of accessing the dollar in
circulation. Most targets envisaged will be missed if there is no currency in
circulation and this also kills the development of small and medium business
enterprises. The closure of TN Harlequin resulting in the loss of more than 800
jobs is resulting from lack of demand in the market of its products and can be
traced to lack of money circulation in the economy. The current liquidity
problems which are constraining banks from lending can partly be addressed by
instituting policies that encourage the transmission of remittances through formal
means and hence availing remittance funds to financial institutions.
The document fails to fully address the effects of globalisation and how this are
impacting on the way we do business on a day to day basis. The issue of
introducing international business transaction systems such as PayPal, Pay point
and BACs and how this money wire transfer can revolutionaries business in
Zimbabwe and help address the challenges posed by the lack of US$ in circulation.
The setting up of Special Economic Zones can benefit the economy if conducive
instruments that make business flourish are in place and this also helps monitor

4. capital flight and prevent fraud and externalisation of cash subject to tax as gross
company earnings. ICT is at the hub of all this and the document is skating over
this issue. We need a robust and strategic intent to transform business
infrastructure that helps creates downstream industries and small traders which
activates and rejuvenates the economy.
The issue of bringing in accountability in the govt thrust towards the management
of natural resources needs re-emphasis because the GDP growth targets and
projections are anchored on these not so finite resources. These resources need
to form the nexus of economic transformation with clear safeguards from
plunder. The strategic focus should look at the bigger picture, how these
resources can transform the country's economic potential and change the outlook
projected into the next 50 to 100 years. The 'Look East Policy' needs to look
seriously at how the govt can bring in equipment for the beneficiation of natural
resources ahead of sub-contracting foreign firms to assume overall control of
these key scarce resources. Gold is Zimbabwe's most important mineral with
about 600 registered gold mines across the country comprising about 30 large
and medium sized producing an annual output of about 20 tons of gold, which
ranks 3rd to South Africa and Ghana in the world top20. So it is of necessity to
prioritise the beneficiation of gold internal to boost the market value of final
products, boost local enterprise and create employment in highly skilled polishing
capabilities.
http://www.jaw-crushers.org/solutions/gold-mining-processing-equipment-
zimbabwe.html

5. By exporting raw natural resource, we are technically transferring in excess of
approximately 6 000 highly skilled jobs to India and parts of Asia in the diamond
sector alone as well as the downstream demand for goods and services from this
work force. Looking at other sectors such as steel and ore mining, this means we
can technically rejuvenate the economy and create close to 40 000 jobs resulting
in increased tax revenue involves and related demand boosting the economy.
To sum up my analysis, there is need forgovt to move out of its shell and engage
more with its Diaspora constituency in a way that opens clear lines of
communication to transform the way we do business and relate with the wider
world. Some of the countries that have successfully engaged their Diaspora
Nationals include the likes of the Philippines, India, Mexico, Bangladesh, Nigeria,
Morocco, Kenya and Ghana. Lessons learnt indicate a positive correlation
between reforms meant to facilitate Diaspora participation, and the actual
participation of Diasporas in areas such as investment, remittances, etc. The
reforms/policies not only contributed to the Diaspora maintaining social and
psychological links with the homeland, but also served as vehicles for building
mutual trust and promoting remittances and investments. The fight for the
removal illegal sanctions needs to be intensified to free the country from tactics
of modern day slavery camouflaged as restrictive measures. The world appears
ready to re-engage Zimbabwe and we need to up our game and use the fishing
rods at our disposal.
Joshua Chigwangwa
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