The Contribution of the Informal Sector to Poverty Alleviation in Zimbabwe

The past decade(2000-2010) for Zimbabwe was characterized by worst economic performance since its independence in 1980. Capacity utilization shrank to 10% and unemployment rate was above 80% by 2008 as the private and public sector unleashed massive retrenchments. This impoverished the great majority. High poverty levels forced the jobless to join the informal sector which uses labour intensive methods of production. Even in the aftermath of a decade long economic downturn, Zimbabwe’s formal sector is still shrinking due to socio-economic factors  that hinder the local industry full capacity utilization. The retrenched are joining and actively participating in the informal sector. It is against this background of growing importance of the informal sector in alleviating national poverty that this paper put forward some policy intervention suggestions in promoting the growth of the sector. Key words: Informal sector, poverty reduction, policy interventio

IMPACT OF AGRICULTURAL DEVELOPMENT ON YOUTH EMPLOYMENT IN ZIMBABWE: THE CASE OF MASVINGO PROVINCE

Zimbabwe is basically endowed in agricultural resources. As a result agricultural activities have a large bearing on developmental issues in the country. Employment is one such economic issue that hinges much on agricultural development. Over the past decade employment levels have reduced as a result of low investment in the country. Masvingo Province has not been spared. This scenario has seen many youths being out of employment as the sector employed less labour. The study found out that economic woes that Zimbabwe experienced over the past half decade have contributed significantly to youth unemployment in agriculture in Masvingo Province as a result of low investment in the sector. The study recommends that heavy investment be put in agriculture and agriculture related projects to enhance employment levels of the Zimbabwean youths in Masvingo province

Empirical Test of the Relationship Between Exchange Rate and Inflation in Zimbabwe

This research looks into the empirical relationship between exchange rate and inflation in Zimbabwe during the period 1980 to 2007. Using Granger Causality test estimated results reveal that both the exchange rate and inflation have long run relationship. On the other hand, inflation and exchange rate are found to Granger-cause each other during the period under consideration. Based on results of the research, appropriate policies can then be drawn given insight to how exchange rate can perform its roles without necessarily leading to inflation and we recommend the policy makers should try to cushion the effect of inflation on the economy when the need arises so that rise in exchange rate will not lead to inflationary pressure. Key Words: Exchange rate, Inflation, Granger Causality test, Polic

An Analysis of Effective Responsibility Accounting System Strategies in the Zimbabwean Health Sector (2003-2011)

The study set out to come up with strategies to ensure effective responsibility accounting system in the Ministry of Health and Child Welfare (MOHCW) in Mashonaland West Province of Zimbabwe. The study was largely prompted by the fact that despite having been professionalized in its functions, the Ministry was still facing a lot of challenges. The target population for the study was the management and a sample of 70 employees from the fourteen stations in the province was used. Systematic sampling (probability sampling) and purposive or judgmental sampling (non-probability sampling) were used. It was observed that departments were operating with mandated budgets and that planning and control were not integrated. In addition it was also observed that performance reports were being used to fix blame on management and that performance reports were not being distributed to sectional managers on a regular basis. It is recommended that when coming up with budgets for the province the leadership should allow station managers to participate in the budget formulation and their suggestions should be taken on board and incorporated in the master budget. Key words: Strategies, Responsibility Accounting, Public Secto

Survivalism, collectivism and proud heritage: A study of informal arts and crafts entrepreneurship in rural Zimbabwe

Background: Entrepreneurship has most often been studied in the context of developed economies and results extrapolated to apply universally. This tells us little about entrepreneurship in other contexts, including in developing economy situations. In the developing world, entrepreneurship has been explored as a means of reducing poverty, but there has been little inspection of it from other perspectives.   Aim: This article explores the motives and experiences of arts and crafts traders in rural Zimbabwe and provides information about the purposes of the business for financial and social life from the perspectives of our research participants.   Method: The study used a qualitative methodology, conducting interviews with 12 rural arts and crafts traders.   Results: The research identifies drivers, experiences and outcomes of entrepreneurship that are explained by the unique structural and sociocultural context, and the value ascribed to business refers both to financial income and the dissemination of culture and heritage. Evidence of specific sub-Saharan modes of conducting business, reflecting the collectivity, reciprocity and strong ethnic identity characteristics of sub-Saharan African societies also emerges.   Conclusion: The article illustrates that western models of business and entrepreneurship may be limited in terms of informing us about the experiences in other contexts. We argue that research on entrepreneurship, and any policy on it in sub-Saharan Africa, takes cognisance of the non-western context and the potential for unique contextual business orientation and outcomes

AN ECONOMIC ANALYSIS OF THE DETERMINANTS OF ENTREPRENEURSHIP: THE CASE OF MASVINGO INFORMAL BUSINESSES

In the past decade, Zimbabwe has been hit by its worst economic performance since its independence in 1980. Capacity utilization shrank to ten percent and unemployment rate was above eighty percent by 2008 as the private and public sector witnessed massive retrenchments. As a result many people are finding themselves engaging in informal businesses to make ends meet. However not all people have joined the informal sector as has been witnessed by the number of people who left the country in droves to neighbouring countries. It is against this background that this research conducted an economic analysis of the determinants of entrepreneurship in Masvingo urban with an emphasis on the informal businesses. The research targeted a sample of 100 informal businesses (30 from Rujeko Light industrial area, 40 from Mucheke Light industrial area and 30 from Masvingo Central Business District). The businesses included among others flea market operators, furniture manufacturers, suppliers and producers of agricultural products, and food vendors. The research found out that level of education, gender, age, marital status, number of dependants, type of subjects studied at secondary school and vocational training are the main determinants that influence the type of business that entrepreneur ventures into. The study recommends formal training for the participants, for the businesses to continue into existence since they fill in the gap that is left vacant by most formal enterprises

THE IMPACT OF GOVERNMENT AGRICULTURAL EXPENDITURE ON POVERTY IN ZIMBABWE

Global experience with pro-poor growth and empirical work spanning India, Benin and Malawi demonstrates the importance of agricultural expenditure for poverty reduction in poor rural areas, while also pointing to the need for complementary non farm sector growth. This paper proposes a simple methodology to estimate the agricultural spending that will be required to achieve the Millennium Development Goal of halving poverty by 2015 (MDGs) in Zimbabwe. This method uses growth poverty and growth expenditure elasticities to estimate the financial resources required to meet the MDGs. The paper attempts to address a key knowledge gap by improving estimation of first MDG agricultural expenditure at country level

The Impact of Government Agricultural Expenditure on Economic Growth in Zimbabwe

A vibrant and an efficient agricultural sector would enable a country to feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries. The agricultural sector has a multiplier effect on any nation's socio-economic and industrial fabric because of the multifunctional nature of agriculture. The main objective of this study was to investigate how government expenditure on agriculture has affected economic growth in Zimbabwe from 1980-2009. The Log linear growth regression model was employed where gross domestic gross was the dependant variable and the explanatory variables are the factors which affect it which include government agricultural expenditure. The expenditures of government on agriculture were divided into three functions namely extension, credit assistance and research and development. The regression analyses were performed using Econometric-views 7 (E-views 7) statistical package. Regression was carried out on time series data for the period 1980 to 2009. The data was tested for stationarity and for autocorrelation. Problems of non stationarity of data were corrected by integrating the trending series. Results from the empirical analysis provide strong evidence indicating that agriculture is an engine of economic growth. The results from this study suggest that spending more on agricultural research and development can improve economic growth and ultimately reduce poverty. However, it can also be concluded that insufficient government agricultural expenditure on extension and credit assistance adversely affected economic growth in Zimbabwe, based on the results of the study. Keywords: Economic growth, government expenditure on agriculture, multiplier, Zimbabw