TSP economic objectives on course

Prof. Mthuli Ncube

The introduction of the Transitional Stabilisation Programme (TSP) in October 2018 came with it a set of objectives, among them the elimination of rent-seeking behaviour and arbitrage opportunities that cause great discomfort on the smooth function of the economy.

Affordability, price stability and availability of goods and services are critical for the efficient well-being of any economy.

Lack of these structural issues presents rent-seeking behaviour and arbitrage opportunities and this is exactly what was happening in the country prior to the introduction of the TSP.

An economist Mr Luxon Zembe is delighted by the policy direction driven by the TSP in efforts to eliminate rent-seeking activities especially in the manufacturing industry, fuel sector and the agricultural inputs supply side.

Mr Zembe also encouraged the authorities to closely monitor the health sector.

Tendencies of rent-seeking behaviour across the health value chain system are slowly creeping in and if left unchecked will have a detrimental effect to the productivity of the economy.

In public choice theory and in economics, rent-seeking involves seeking to increase one’s share of existing wealth without creating new wealth.

The economic gains from the successful implementation of the TSP require the collective effort of government and business to achieve growth targets as envisaged by 2030 Vision.