The economic landscape in Zimbabwe is currently undergoing a transformative period, shaped not only by the strategies outlined in the National Development Strategy I (NDS1: 2021-2025) but also by the urgent need to address the critical skills gap. During the recent Zimbabwe National Chamber of Commerce Business Agenda on Friday, the Minister of Skills Audit and Development, Prof. Paul Mavima, emphasized the significance of a comprehensive and regular analysis to identify and bridge this skills gap. This initiative aligns with global efforts as, in 2022, the International Labour Organization collaborated with the Government of Zimbabwe and various partners, including the private sector and civil society, to develop a Horticultural Sector Skills Strategy. This strategy, being piloted in the horticultural sector, recognizes the disconnect between what educational institutions produce and the industry's actual requirements.

ZNCC notes the operationalisation of THE 2024 National Budget proposals through SI 248 and 249 of 2023 as well as the Finance (No.2) Act 13 of 2023, some of the measures which have since been reversed by the government pending further deliberations. In particular, we would like to highlight the measures to protect value chain integrity and transparency, and to counter unfair competition by informal traders.

An informal economy (informal sector or shadow economy) is the part of any economy that is neither taxed nor monitored by any form of government. Although the genesis and significant rise in informality in Zimbabwe dates back to 1991 when the country adopted and implemented the Economic Structural Adjustment Programme (ESAP), the informal economy has been on the rise, and the fast-track land reform program of 2000 which triggered the closure of some owned foreign-owned enterprises across various economic sectors added to the growth of informality over the years. The informal sector in Zimbabwe is indeed a “pool” of entrepreneurial talent that can be harnessed to fuel economic growth. The COVID-19 pandemic has seen a rise in the informal sector as people have struggled to eke out a living. The table below presents some stylized facts about Zimbabwe’s informal economy.

“Consolidating Economic Transformation”

Presented to the Parliament of Zimbabwe

By

Hon. Prof. Mthuli Ncube

Minister of Finance, Economic Development and Investment Promotion

Harare, 30 November, 2023