Government support measures boost industry operations
A cocktail of Government strategies designed to spur industry and commerce growth is paying dividends as evidenced by increased capacity utilisation, an upsurge of locally produced goods in retail shops and significant investments due to the conducive environment for sustainable private-sector operations created by the Second Republic.
The contribution of the value of the manufacturing sector to the country’s total value-added products increased from 15,7 percent in 2019 to 18,4 percent in 2021, and is ranked third after agriculture and mining.
In the same period, manufactured exports also recorded a jump in value from US$324 million in 2021 to US$366 million in 2022, with most exported products being food, manufactured tobacco, textiles and packaging.
Dr Sekai Nzenza
On the other hand, capacity utilisation increased from 47 percent in 2020 to 66 percent last year while there was a significant increase in volumes of locally produced goods in retail shops reaching 85 percent last year up from 40 percent in 2017.
In a post-Cabinet media briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Senator Monica Mutsvangwa said in her State of Industry Report to Cabinet, Minister of Industry and Commerce, Dr Sekai Nzenza said the country has achieved remarkable modernisation and industrialisation milestones under the “Moving the Economy up the Value Chain and Structural Transformation” pillar of the National Development Strategy 1.
Minister Mutsvangwa said various strategies which the Government is pursuing to spur industry and commerce growth include improved access to funding by industry, implementation of the local content strategy, promoting ease of doing business, economic empowerment, consumer protection and the quality assurance programme.
Added to that, the minister said tax rebates, granting of Special Economic Zones status, introducing the domestic currency, support to the plastic industry and provision of land with title deeds to businesses domiciled in rural areas are some of the strategic interventions benefited industry:
“Going forward, the Industrial Development Corporation of Zimbabwe (IDCZ) will work closely with Innovation Hubs and Industrial Parks to commercialise value chains in the national interest. Cabinet is pleased to advise that Zimbabwe’s industrial sector remains highly diversified comprising 94 sub-sectors, producing about 6 000 products.
“The sector is also highly integrated with the rest of the economy, and Government’s concerted measures to support industry, including macro-economic stability, have resulted in positive performance being recorded in manufacturing,” said Minister Mutsvangwa.
“The strong performance in the industry and commerce sector demonstrates that the Second Republic led by His Excellency the President, Cde ED Mnangagwa, is walking its talk in industrialising and modernising the economy as well as economic growth,” said Minister Mutsvangwa.
Through product research, innovation, development and commercialisation, new commodities are now being locally produced on a commercial basis.The country is now producing tick grease for cattle (Contratik), grain protectants, cough syrup, water treatment chemicals, oxygen, and agricultural lime, Covid-19 personal protective equipment ranging from sanitisers, surgical masks, swabs and aprons.
Dr Sekai Nzenza
The manufacturing sector’s strong performance has also been buoyed by significant investments due to the conducive environment for sustainable private-sector operations created by the Second Republic, which it continues to enhance under the “Zimbabwe is Open for Business” agenda.
Notable is the Bakers Inn plant expansion in Bulawayo which will result in a new factory line having a production capacity of about 8 000 loaves of bread per hour.
Cement manufacturing giant, Pretoria Portland Cement (PPC)’s Colleen Bawn plant in Matabeleland South Province has a clinker production capacity of 650 metric tonnes per annum, which translates to one million tonnes of cement per annum.
In Harare, there is Varun Beverages plant and equipment expansion, Delta Corporation has invested about US$600 million in new manufacturing plant and equipment and Kefalos dairy processing plant was commissioned in Mhondoro.
The minister said Mega Market milling plant was commissioned in Mutare, Bata Shoe Company injected US$5,9 million investment in plant and machinery in the Midlands Province and a US$11 million investment in plant upgrade by Sable Chemicals in Kwekwe.-chronicles
