Senior Zimbabwean Officials to study Management of Natural Resources in Norway

MEFMI is leading a delegation of senior Zimbabwean Government officials on a field visit to study the management of natural resources in Norway. The delegation will, among other institutions, visit the Christian Michelsen Institute (CMI) in Bergen, Norway. CMI is an independent development research institute, whose research focuses on local and global challenges and opportunities facing low and middle-income countries and their citizens.

The field visit which will take place from 19 to 25 October is a follow up to the discussion forum on natural resources management that MEFMI and the Embassy of Norway held in Harare, Zimbabwe, on 28 May 2013.

It is expected that through the field visit, the officials will gain insight into how to develop strategies that will see natural resources in Zimbabwe being exploited not only for the benefit of the extracting companies but also for the nation at large.  MEFMI will also share the experiences from the field visit with its member states at regional workshops.

The story of Norway is an apt example of how policy formulation and implementation can change the fortunes of a nation.  MEFMI strongly believes that as the region moves forward and as Zimbabwe intensifies its efforts in harnessing natural resources, there is a great potential for the region to enhance its economic growth by learning from and implementing some of the strategies pursued by Norway. Economic benefits can only be achieved if there is a systematic, transparent and efficient way of harnessing the rich deposits of precious stones, metals and other natural resources in order to utilise the income generated for the benefit of the nation.

For Zimbabwe, mineral extraction constitutes a significant part of the country’s economic activities and remains key to economic growth. The country ranks very high in the world on the quantity reserves of coal, diamonds, platinum and gold. The economic impact of exploitation of these resources can improve greatly depending on both the legal and regulatory frameworks governing mining and how the Government manages the proceeds. 

On a per-capita basis, Norway is the world’s largest producer of oil and natural gas outside the Middle East. Currently the country has the fourth-highest per capita income in the world that is mainly driven by natural resources. The petroleum industry accounts for around a quarter of the country’s gross domestic product. The Norwegian tradition of communal ownership of natural resources is a case study that Zimbabwe and the MEFMI region as a whole can draw valuable lessons from.

Using the Norwegian experience as a model, the Africa region can change its fortunes by realigning the current contrast between the enormous financial gains which individuals and private companies are making from exploiting resources and the extreme poverty and financial insecurity that characterise communities directly affected by extractive activities.

The visit to Norway is expected to assist Zimbabwe Government officials to have first-hand interaction with the Norwegian authorities and the various government agencies that have seen Norway grow into one of the strongest economies in the world. The Nordic model outlines the technical, institutional and organisational arrangements that are seen as the main pillars of the Norwegian management of natural resource wealth.

The delegation to Norway will be led by the MEFMI Executive Director, Dr Caleb M. Fundanga.  Officials from the government of Zimbabwe are the Permanent Secretary in the Ministry of Finance and Economic Development, Mr Willard Manungo, the Senior Division Chief, Economic Research & Special Projects at the Reserve Bank of Zimbabwe Mr Simon Nyarota, the Commissioner General of the Zimbabwe Revenue Authority Mr Gesham Pasi and the Acting Chief Executive Officer and Chief Economist of the Chamber of Mines of Zimbabwe Mr Isaac Kwesu.  MEFMI staff who will be part of the delegation are the Publications & Networking Officer Ms Gladys Siwela and the Programme Officer in-charge of Foreign Private Capital Monitoring and Regional Issues Mr Evarist Mgangaluma.