Industry Policy to drive firms resuscitation
ZIMBABWE National Industrial Development Policy (ZNIP) will focus on resuscitation of ailing industries through government support programmes including incentives and policies aimed at enhancing competitiveness, according to Industry and Commerce Minister , Dr Sithembiso Nyoni.
ZNIP is the principal policy that is aimed at driving the country’s industrialisation thrust.
Government has for a while now been determined to revive poor-performing sectors of the economy as the country gears towards an upper-middle-income economy by 2030.
The zeal to enhance diversified sectorial performance by authorities has already seen the treasury allot US$30 million Horticulture Export Revolving Fund (HERF) which is anticipated to support the sustenance and innovation in the sector that significantly contributes to the country’s export earnings.
In addition, 2022 saw the Government launch a US$22,5 million kitty to support manufacturing sector growth, with fertiliser and other agro-processing activities receiving US$7,5 million while cotton, leather and pharmaceutical value were allotted US$5 million apiece.
The manufacturing sector has been witnessing growth since 2019, with capacity utilisation steadily growing to levels above 60 percent while domestic products have grown to improve their occupancy on the shelves of local supermarkets.
It focuses on implementing policies that foster high, inclusive, broad-based, and sustainable economic growth.
Speaking during the Manhize Steel Plant site visit, Nyoni said the policy is also earmarked to increase the share of manufacturing value added (MVA) in GDP to 20 percent by 2030, while growing the share of manufacturing employment to total to 20 percent by the same year.
She said ZNIP will be informed by Vision 2030, the National Development Strategy 1 (NDS1), as well as regional and international policies on industrialisation.
“The industrial policy will also present plans for reviving and resuscitating ailing industries, including support programmes, Government incentives and policies aimed at promoting competitiveness and sustainability.
“My responsibility as the Minister of Industry and Commerce is to promote the development of vibrant, sustainable and globally competitive industrial and commercial enterprises.
“This can only be achieved through the provision of an enabling policy and regulatory framework. Government is enhancing engagements with the private sector to create an environment that nurtures innovation, fosters growth and facilitates the success of local businesses,” said Minister Nyoni.
The 2024-2030 policy intends to facilitate growth, productivity improvement, transformation and competitiveness through accelerating investment in Zimbabwe Industrial sector.
It aims to attain a manufacturing sector growth rate of at least two percent per annum, grow manufacturing sector investment by three percent per annum and to increase manufactured exports by 10 percent per annum.
Turning to Manhize developments, she said the Steel Plant represents a significant milestone for the nation’s industrial development and the entire iron and steel value chain.
“The establishment of the Manhize Steel Plant signifies our commitment to strengthening the iron and steel value chain within Zimbabwe. This plant will play a pivotal role in enhancing the production of iron ore, its processing into steel and the subsequent manufacturing of various steel products. By integrating these stages of the value chain, we are fostering a more self-reliant and sustainable steel industry.
“The impact of the Manhize Steel Plant on the economy cannot be overstated. The growth and development of the steel industry has a multiplier effect on other sectors, such as construction, infrastructure development, and manufacturing. The availability of high-quality steel products locally will reduce our reliance on imports, thereby saving foreign currency and boosting our balance of trade.”
This plant will play a pivotal role in enhancing the production of iron ore, its processing into steel, and the subsequent manufacturing of various steel products. By integrating these stages of the value chain, we are fostering a more self-reliant and sustainable steel industry.-ebusinessweekly
