fbpx
Saturday, May 11, 2024
HomeBusinessMatebeleland Provinces Have Weakest Economies: Report

Matebeleland Provinces Have Weakest Economies: Report

The provinces of Matebeleland South and North had the lowest contribution to national gross domestic product (GDP) in a survey conducted by the Zimbabwe Statistics Agency (Zimstat) echoing the plight of economic marginalization in the region.

According to the 2019-2020 Provincial GDP Report released this morning, after delays attributed to COVID-19, out of a national GDP of $ 1.157 trillion in 2020, Matebeleland south had the lowest GDP contribution of  ZWL$ 56 billion constituting 4. 84% followed by Matebeleland North with ZWL$ 61 billion translating to 5.27%.

In contrast, Harare province which has the capital city contributed 25.41% to national GDP, which was the highest suggesting the need for de-centralization.

Main activities in Matebeleland North were mining and quarrying which contributed 16.0%, Manufacturing industry with 16.2%, Electricity, gas, steam and air conditioning supply with 13.5% and Wholesale and retail trade; repair of motor vehicles and motorcycles contributed 12%. Accommodation and foods contributed 1.7%.

Main Activities in Matebeleland South province included Wholesale and retail trade; repair of motor vehicles and motorcycles  which was the major contributor to GDP being 21.4%, Mining and quarrying contributing 18.6%, Manufacturing at 14.6% and Education contributing 5.8%.

“In terms of devolution, there is a need to look outside of Harare and Bulawayo in developing non-primary activities. There is potential to set up value addition,” said Dr Nicholas Masiyandima, chief economist-Economic Research and Policy RBZ.

ALSO ON 263Chat:  Mthuli Tours Nestle, Promises More Support For Industries

Bulawayo metropolitan had the second highest contribution at 13%, followed by Midlands 11.23%, Mashonaland West 11%, Manicaland 8.90%, Masvingo 7.26%, Mash Central 5.79%, Matebeleland North 5.27% and Matebeleland South 4.8%.

Government has set aside ZWL $ 42.5 billion towards devolution this year as it pursues the devolution agenda although critics say progress has not been quick enough.

Since the economic downturn at the turn of the century, there has been an exodus of companies, particularly in the southern parts of the country to establish their bases in Harare for presumably economic reasons.

This has however raised the ire of people in the Southern parts of the country as this has left much of the Matebeleland region economically inactive.

Despite this, the region has maintained its potential with vast resources in mining, tourism, and cattle ranching yet there has been little effort by government to unlock the potential in the region.

Share this article

No comments

Sorry, the comment form is closed at this time.

You cannot copy content of this page