ZIMBABWE AGENDA FOR SUSTAINABLE SOCIO-ECONOMIC TRANSFORMATION:

UPTAKE, PROGRESS UPDATE AND CHALLENGES

Theme Mining for Economic Transformation: Resetting the Role of the Mining
Sector as the Cornerstone of the Zim ASSET Blueprint

Presentation by Mr. A T Chikondo

PRINCINCIPAL DIRECTOR , IMPLEMENTATION, MONITORING AND EVALUATION
OFFICE OF THE PRESIDENT AND CABINET
75TH CHAMBER OF MINES OF ZIMBABWE AGM
VICTORIA FALLS
23 MAY 2014

Outline

Purpose of the presentation

Overview of Zim ASSET
ZIM ASSET Clusters
ZIM ASSET Implementation Modality
Role of Stakeholders
Funding Modalities
Conclusion
2

Purpose of the Presentation

Highlight the following
Uptake of Zim ASSET
Progress update of Zim ASSET
Challenges

Overview
In consultation with private sector stakeholders
government adopted the Zim ASSET Plan
2013-2018 as a national programme
It is a results based Agenda to achieve positive
economic growth rates.
It will guide national development for the next
five years and its vision is Towards an
Empowered Society and Growing Economy

Overview
To achieve the blueprints mission of providing
an enabling environment for sustainable
economic
empowerment
and
social
transformation to the people of Zimbabwe,
Zim ASSET will focus on the full exploitation
and value addition to the countrys abundant
natural resources, of which mineral resources
are key
5

Overview
His Excellency the President, Cde R G Mugabe notes
that
Given the resource constraints, Government will
come up with robust and prudent fiscal and
monetary policy measures to buttress and boost
the implementation of Zim ASSET. Government
ministries and agencies, the private sector and
development partners and the nation at large are
therefore called upon to work together in
championing the implementation of this Results
Based Agenda
6

Overview
Work on this has already started through relevant
consultative meetings with business through fora
such as National Economic Consultative Forum
(NECF), and ZIM ASSET Joint Review Committee.
A calendar of meetings has been produced which
will allow Government and business/industry to
interrogate the status of Zim ASSET
implementation
NECF will also be used as a nucleus for regional
engagement
7

ZIM ASSET Clusters

The Plan is built around four main clusters to ensure
effective implementation processes; guarantee
horizontal and vertical linkages; provide greater
synergies; and accelerate growth. These are
Food Security and Nutrition
Social Services and Poverty Eradication
Infrastructure and Utilities
Value Addition and Beneficiation.
The clusters are in place and functional
8

ZIM ASSET Clusters contd

Clusters are to be buttressed by the following
sub-clusters
Public
Administration
Governance
and
Performance Management. Action has been
taken on obscene salary anomalies and the
National Code of Corporate Governance
Framework is being finalized.
Fiscal Reform Measures
9

Implementation Modalities
ZIM ASSET has taken off and it is encouraging
that the Plan has been endorsed by
government , the private sector and
development partners and the nation at large
Progress has been registered in a number of
targets set out in the plan

10

Implementation Modalities contd

A clear implementation modality has been
created to oversee the implementation of Zim
ASSET
Office of the President and Cabinet is the lead
agency to effectively manage, monitor and
evaluate the implementation of the Plan
Clusters regularly report to their respective
cluster heads
11

Implementation Modalities contd

Cluster co-chairpersons coordinate each
cluster
Clusters mirror Cabinet Committee System
ZIM ASSET Joint Review Committee
established to create a platform for
Government and private sector to monitor
implementation of ZIM ASSET, programmes
and projects to ensure efficiency and
effectiveness
12

Implementation Modalities contd

Meetings of Heads of Ministries
Heads of Ministries meet to consider cluster
reports and prepare progress reports to Cabinet
Meetings of Government cluster co-chairpersons
and their counterparts from business
Government cluster co-chairpersons take report
to heads of ministries

13

Implementation Modalities contd

Zim ASSET Joint Review Committee
Meets as a standing committee
Meets as a adhoc committee to deal with
specific issues requiring urgent attention
Feeds into monthly Heads of Ministries meetings
Committee to be cascaded to regional
level/chapters as the case may be

14

Implementation Modalities contd

Focal Persons in each Ministry
ensure that there is a constant link with line
Ministries during the implementation of
programmes and projects.
Implementation modality shows progress in
the following projects in clusters related to
mining
15

Projects
Projects are being implemented in all clusters
List is not exhaustive and projects covered are
under value addition and beneficiation; and
infrastructure and infrastructure and utilities

16

Projects contd
New Zim Steel
Project implementation underway to refurbish
the plant
Transfer of Ziscosteel employees under New
Zimsteel in progress
Establishment of Diamond Cutting and Polishing
Centres
Diamond bill has been gazetted
Diamond centre has been approved and site
incorporated in the development master plan of
Mount Hampden
17

Projects contd
Platinum refinery
Proposals from investors to set up platinum
refinery being assessed
20% export levy on raw PGM from 1 January
2014

18

Projects contd
Expansion of Hwange Power Station
Decision has been taken for Sinohydro to
implement the project
Kariba South Extension
Project implementation has commenced and
civil works for campsite and access roads are
in progress

19

Projects contd
Bulawayo Thermal Station
Nampower and India are developing the thermal
power station
Gwanda Solar Energy Project (100mw)
3 companies China jiangxi, Intratek and ZTE won
tender and will embark on feasibility studies
20

Projects contd
De Green Rhino Energy Solar PV Power Plant
(150 mw)
A portion of Rufaro of Longlands farm in
Marondera allocated to the company on
25/02/2014 paving the way for the project to
start

21

Stakeholder role
Business has duplicated ZIM ASSET structures
Work has started to address specific challenges
and is anticipated to continue in a positive way.
Stakeholders need to allocate resources towards
the implementation of ZIM ASSET

22

Stakeholder role contd

ZIM ASSET a national programme and all
stakeholders have a role to play
private sector should pronounce itself on the plan
and claim a stake
realign its key result areas (KRAs)
Implement results based management approach

23

Funding Zim ASSET

Leveraging domestic resources
Sovereign Wealth Fund to be given priority to
backstop and provide predictability and
sustainability to Government innovative funding.
The Bill has been tabled before Parliament

Pursue Public Private Partnerships (PPPs) in

the development of infrastructure. PPP
regulations approved in 2004 are presently
guiding establishment of PPPs.
24

Funding Zim ASSET

Develop special Economic Zones (used
successfully elsewhere e.g. China). A
workshop was held and process is being
finalized.
Collaborate with development partners on
technical and financial assistance for different
sectors of the economy. Engagement of the
AfDB, World Bank and Chinese Government.
25

Challenges
Key challenges relate to
Energy not consistent and reliable
Infrastructure-most is in need of rehabilitation
Financing- financing remains critical to ensure
Plan implementation
Skills-essential skills are in critical shortage supply
Technology-technology in use is old and
antiquated
26

Conclusion & Action Points

Create space for FDI. Issue of indigenization
clarified
Implementation of performance contracts for
parastatals and state enterprises being
processed
National Corporate Governance Framework
produced
Research and Development, Innovation be
supported and rewarded
27

Conclusion & Action Points

Government and industry work closely together
in the implementation of Zim ASSET
Captains of industry and business people as key
stakeholders should continue to claim a stake in
the implementation of ZIM ASSET
A conducive policy and regulatory environment
and tax regime that can lead to increased
investment and sustained development of the
mining sector is essential
28

Conclusion & Action Points

ZIM ASSET Joint Review Committee established
Review policies to align with what is on the
ground
Government adopted Corporate Governance
Framework for Public Enterprises
OPC remains ready to engage anytime and
support processes

29