Business
After decade of decline, Zimbabwe poised for growth
(Reuters) – Zimbabwe’s economy is likely to continue its strong recovery next year from a decade of decline, posting GDP growth of 9.4 percent compared with an estimated 9.3 percent this year, Finance Minister Tendai Biti said in his budget on Thursday.
The performance was underpinned by expansion in the finance, mining, tourism, agriculture, manufacturing and transport sectors, Biti said.
Despite controversy and confusion over a move by the unity government of President Robert Mugabe and Prime Minister Morgan Tsvangirai to boost local black ownership of mining firms, Biti said the sector attracted US$502 million of investment in 2011.
Zimbabwe is home to the world’s second-biggest deposits of platinum, as well as vast reserves of gold, diamonds and coal.
Reflecting the gradual recovery in mining output, Biti said gold production should more than double to 28 tonnes next year, while diamond sales would total US$600 million, netting the impoverished state more than US$120 million in dividends.
Despite the formation of the unity government in early 2009, most Western nations and investors are keeping the southern African nation at arm’s length while Mugabe remains at the helm.
