Secretary for Finance and Economic Development George Guvamatanga says domestic resource mobilisation will play a pivotal role towards attainment of an upper middle income economy by 2030.
Domestic resource mobilisation refers to the generation of savings from domestic resources and their allocation to economically and socially productive investments.
Mr Guvamatanga revealed this while addressing delegates at the reception hosted for Chartered Financial Analysts (CFA) president and chief executive officer Paul Smith who is in the country.
The event saw graduation of CFA charters whose duty is to superintend over efficient capital markets, which will be key in Zimbabwe’s domestic resource mobilisation.
“Government’s vision of an upper middle income economy by 2030 will also encompass domestic resource mobilisation and you need strong capital markets to mobilise resources from the domestic market, so this is a welcome development that we now have 100 charters who will contribute to efficient capital market in Zimbabwe.
“There is need to build well-functioning capital markets to contribute to vision 2030 and short term transitional stabilisation programme, we therefore call upon professional bodies such as IPAZ and CFA institute to be actively involved in the development of our capital markets so that the highest level of ethical conduct becomes the lifeblood of these markets,” said Mr Guvamatanga.
Capital markets help to channel surplus funds from savers to institutions which then invest them into productive use. Generally, this market trades mostly in long-term securities.
On budget consultations Mr Guvamatanga said government was mindful of problems afflicting the economy hence required contributions that will proffer solutions to the ongoing financial crisis than reiteration of the prevailing problems.
“I have urged Investments Professionals Association of Zimbabwe (IPAZ) to provide input into the upcoming budget, I have said don’t tell me about the problems, I know we have a fiscal deficit but instead, come with sustainable solutions to those problems,” he said.
The visiting Chartered Financial Analysts president and chief executive officer Mr Smith said he was optimistic that Zimbabwe would come up with viable solutions to the crisis facing the nation given that Zimbabwe is home to smart a populace.
“I have no doubt that Zimbabwe’s future is bright considering outstanding quality of people I have met on this visit.
“I’m glad that you (Zimbabwe) recognise your problems therefore you really know what to do, as CFA Zimbabwe society will keep on producing professionals that will help you climb out of the problems you are facing,” said Mr Smith.