‘Import substitution transforms Zimbabwe industry’

INDUSTRY and Commerce Minister, Dr Sekai Nzenza, says the “import substitution agenda” being championed by the Second Republic led by President Mnangagwa is having a transformative impact on the local industry.

In line with the country’s National Development Strategy (NDS1), which prioritises revitalisation of key industrial value chains, the minister says the progressive increase in capacity utilisation, growth in exports and shelf space occupied by locally produced goods are exhibits of a transforming economy.

National Development Strategy 1 (NDS1)

Despite the adverse impacts of the Covid-19 pandemic, she says the lockdown experience has become a catalyst for industrial transformation as it influenced many producers to adopt innovative manufacturing and commercial strategies that have enhanced the country’s economic resilience.

According to official Government statistics the country’s manufacturing capacity is hovering around 66 percent from 47 percent in 2022 while exports earnings have risen by an average 9,2 percent to clock about US$6 billion in 2022 compared to about US$5,4 percent in 2021.

Enhanced fiscal and monetary policy support measures, coupled with improved access to foreign currency through the auction system have been commended for boosting domestic production.

“Together we celebrate progress made not only in the manufacturing sector through increased capacity utilisation and increased exports but we also celebrate the availability of locally made goods on our shelves, which have taken up to 80 percent space, a direct result of His Excellency’s import substitution agenda,” said Dr Nzenza on Friday.

“We were called upon to take bold steps towards the creation of a functional and resilient value chains for the economy to remain sustainable.”

The minister was addressing delegates during a high-level Business Summit in Harare, which was hosted by the Confederation of Zimbabwe Retailers (CZR) and attended by President Mnangagwa.

Money – Image taken from Pixabay

Dr Nzenza said the positive strides by the manufacturing sector were a culmination of the collective aspirations between Government and the private sector pursuant of President Mnangagwa’s vision of fostering a “Private sector-led growth”.

As a result, she stated that the business community was standing in solidarity with the Government in providing a platform for dialogue and introspection on the strategic and policy aspirations of the Second Republic.

Backed by the Local Content Strategy, which has been a key enabler to economic development, this has resulted in improved supply of locally made, affordable and quality goods for the Zimbabwean consumers, the minister added.

Working with industry players, Dr Nzenza said her ministry was conducting joint price monitoring exercises to ensure consumers are served well.

“We have reached a stage where the private sector not only sees value in Government policy but has begun to reap the benefits of your strategic interventions,” she said.

“This is evident in increased local and foreign direct investments in technology, diversification and creation of new industries.

President Mnangagwa

“We are witnessing more and more companies moving away from being net importers and exporters of goods to high value-added goods. The impact of this on the consumer cannot be ignored.”

Dr Nzenza said the Friday business forum provided an opportunity to not only introspect on the challenges facing the productive sector but to also celebrate the gains made under the Second Republic.

“The ‘moving the economy up the value chain’ agenda is well on track. We will continue to work together, navigating the local and global challenges, geopolitical impacts in order to make Vision 2030 a reality,” she said.-chronicle