Activate value chains to steer NDS1 – Dr Nzenza

GOVERNMENT is forging ahead with policy reforms that support creation of vibrant industrial value chains as these are critical in transforming the economy towards an upper middle-income status by 2030, Industry and Commerce Minister, Dr Sekai Nzenza, said yesterday.

Re-activating value chains is a key priority under the National Development Strategy 1 (2021-2025), a five-year development plan that guides economic developments in the country towards the national vision.

Despite the dampening impact of the novel Covid-19 pandemic on the productive sector, which has negatively affected capacity utilization and investments, Zimbabwe is optimistic of positive growth this year. Already, capacity utilisation spiked by 10 percent to 47 percent last year, defying the lockdown effect, according to the latest manufacturing survey report.

The country has to build on the gains of such resilience and expedite revitalisation of value chains in order to realise more economic benefits, said Dr Nzenza while addressing industry captains during a symposium organised by the Confederation of Zimbabwe Industries (CZI). The event coincided with the release of the 2020 manufacturing sector survey results.

“For the manufacturing sector, the underlying priority in the NDS1 is ‘moving up the value chain and structural transformation’ which is, generally, strengthening of value chains as a key ingredient for driving industrial growth and development,” she said.

Through evidence-based research, CZI collaborates with the Ministry of Industry and Commerce to undertake the annual survey, which offers critical recommendations to policy makers regarding productivity and CZI. The survey shows capacity utilization trends across the manufacturing subsectors, assesses the effectiveness of existing policies and apprise on the corrective policy measures to be adopted.

Dr Nzenza said the Government would continue promoting industrial and commercial sector growth and investments. In doing so, she said a number of policies and strategies are being formulated and implemented in collaboration with the private sector.

These include the Zimbabwe National Industrial Development Policy (2019-2023), where the private sector provided critical input. The policy guides the country’s industrial growth and developments and is anchored on the strategic pillars of developing value chains, rural industrialisation, developing anchor industries, industrial clusters and commercialisation of intellectual property rights, among others.

The minister said sector specific strategies to develop selected value chains were also in place and being implemented with the respective players. These include: the motor industry policy, iron and steel, Zimbabwe Leather Sector Strategy (2021 to 2030), cotton-to clothing, and pharmaceutical sector strategies.

“Work is also at advanced stages, in collaboration with sector players to develop the sugar strategy and the tobacco value chain strategy to strengthen these exiting value chains,” she said.

“In the motor industry development, the recent initiative by Government to curtail the importation of vehicles older than 10 years will support the resuscitation of local vehicle assemblers and components manufacturers.”

Under NDS1 the Government has since prioritised six value chains namely agro processing, pharmaceuticals, bus assembly, iron and steel and plastic value chain.

“In the implementation of these value chains we expect the private sector to work with the ministry on the mapping as we move up the value chain programme,” said Dr Nzenza.

“Specific policy frameworks will be used to ensure an enabling environment.”

The minister said the granting of rebate of duty on capital equipment, VAT deferment on imported capital equipment and granting of National Project Status to key investments were some of the milestone interventions aimed at enhancing increased industrial growth and creation of jobs.

She challenged local payers to gear up for the African Continental Free Trade Area (AfCFTA) and match increased competition from other countries.–herald.cl.zw