ZIMBABWE?S economy shrank by 7,3% last year, Finance Minister Simba Makoni told parliament on Tuesday, in a speech that appealed for government to end the political violence wracking the nation.
”The government should ensure peace and security for all citizens through an end to violence, and enable the economy and business to function normally and work for the well being of the nation,” he said.
Every major sector of the economy shrank by more than five percent, while the agricultural sector — which once powered the national economy –shrank by 12,2%, he said.
”The specific factors that affected the performance of this sector includes the acute foreign currency shortages, which led to erratic imports of essential inputs; reduced agricultural productivity associated with the initial stages of land reform; and unfavourable weather conditions,” he said.
Makoni urged government to ”enable all farmers to farm without disruption as we intensify and expedite purposeful and production-oriented agrarian reform.”
Zimbabwe has suffered from widespread political violence for more than two years.
More than 50 people, mainly opposition supporters, have been killed so far this year, while thousands more have been abducted, tortured or otherwise intimidated, according to rights groups.
The violence has fuelled a spectacular economic collapse in a nation that was among the most vibrant in Africa.
Inflation in Zimbabwe is estimated at more than 110%,
sending the cost of living soaring and leaving about 80% of the population in poverty.
”These problems, coupled with the HIV pandemic, worsened the economic and social welfare of the nation,” Makoni said.
HIV, the virus that causes Aids, has infected one in four Zimbabwean adults, according to United Nations statistics. – Sapa-AFP