Zimbabwe on track for 9.3% growth: minister

Zimbabwe's economy is on track to grow by 9.3 percent this year off the back of strong minerals prices, Finance Minister Tendai Biti says, urging regulators to allow sales of disputed diamonds.

Biti told parliament that Zimbabwe would meet its growth target, driven by 44 percent growth in mining, the largest segment of the economy, and 19.3 percent growth in agriculture.

But he warned that the country would still need to come up with an additional $700 million this year to meet its expenses, and urged the Kimberley Process diamond regulator allow Zimbabwe to sell disputed gems to close the gap.

"It is important that the international community recognise the level of compliance of Zimbabwean companies and afford Zimbabwe the right to sell through the Kimberley Process," Biti said.

Kimberley banned the sale of diamonds from Zimbabwe's Marange fields in 2009, after the military took control of the region and violently expelled small-scale miners, killing more than 200 people, according to Human Rights Watch.

Now Zimbabwe says it has cleaned up operations, allowing two companies to conduct most of the mining in Marange, and Kimberley is embroiled in a bitter debate over whether to allow sales.

Harare is sitting on a stockpile of gems estimated at $5.0 billion but Biti said much of Marange's output was unaccounted for as the diamonds flow into the black market.

"There is no connection between Zimbabwe's income from diamonds and its output," the minister said.

Zimbabwe's economy has begun rebuilding after a decade-long collapse marked by the collapse of the local currency under staggering hyperinflation.

The unity government formed in 2009 by veteran President Robert Mugabe and rival Prime Minister Morgan Tsvangirai has stabilised the country, but investors remain uncertain as Zimbabwe inches toward new elections.

Biti, a top Tsvangirai ally, urged the parties to ease political tensions to encourage more foreign investment.

"We have to address the issue of the political environment. Political challenges increase pressure and shocks and reduce the planning horizon," he said.

"Zimbabwe has not benefited from foreign direct investment into the sub-region," the minister said.

"We are not at the party. We need to be at the party by addressing issues including our ugly politics."