After averaging 10% from 2009 to 2012,
After the 2014 Article IV Consultation with
Financial sector vulnerabilities persist, there is low capitalisation in industry and low liquidity amid political and policy uncertainty factors that have for long been noted as deterrents to investment inflows.
"Other risks relate to policy inconsistencies that could affect investment and financial sector vulnerabilities such as liquidity shortages and disorderly unwinding of troubled banks," the IMF added.
Government's sluggish response to factors affecting the economy which have resulted in successive extensions of the ongoing SMP,
"We are already moving in the wrong direction after indications the government wants the SMP to be extended further beyond
He said government has misguided priorities and is reluctant to deal with endemic corruption and bureaucracy which increase the cost of doing business or implementing real measures to cut the ballooning wage bill. "How can you have money to buy luxury vehicles for officials and not afford clean water?" asked Kanyenze.
The economist said government is focusing on factional fights and not bread and butter issues, adding factional-driven policies and discord among cabinet ministers worsened
"There is discord and government is in a quandary because of the way it was constituted to balance factions. This is clearly not working because people are not singing from the same hymn book."
He said the economic challenges will persist until deliberate measures to boost production in agriculture, mining and industry are put in place.
"The same problems are identified time and again, but we have actually done almost nothing," Robertson said.
He said the discord in government has ruined the country's credibility.
"Investors cannot take us seriously," Robertson said, adding proper policy formulation procedures should be followed.
"We have ministers thinking they can change laws by making a press statement. Clearly, parliament is being sidelined and I think the IMF would like to see that change."
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