‘Value-addition to steer export earnings’

THE re-opening of the Cold Storage Company (CSC)-Boustead Beef, should energise exportation of value-added beef and leather products, which will enhance the country’s foreign currency earnings, ZimTrade chief executive officer, Mr Allan Majuru, has said.

National Development Strategy 1 (NDS1)

Under the National Development Strategy (NDS1-2021-2025), Zimbabwe is focused on expanding its domestic industrial output in which value addition and beneficiation are a game-changer in delivering export-led economic growth.

The revival of CSC-Boustead Beef last week adds impetus into this broader vision as the New Dispensation aims at transforming Zimbabwe into an upper middle-income economy by 2030, said Mr Majuru.

“If you look at the beef and leather value chain, and look at NDS1, the target is to grow output from around 50 000 tons of beef to around 110 000 tons by 2025. That is where we need to go,” he said.

Despite the historic barriers such as Foot and Mouth Disease (FMD) that hit the sector in recent years and the illegal Western sanctions, which crippled beef exports in the past, Mr Majuru said CSC rebound was good news for the economy.

“We, are glad now that it (CSC) is now operating again. If you look at the beef and leather value chain globally, it hovers above US$100 billion plus and that’s a lot of money,” he said.

Cold Storage Company (CSC)

“But there is more money in the leather value chain, which is six-times more, and why? This is due to value addition. There is more money in value addition.”

Mr Majuru said the coming on board of CSC should inspire increased domestic leather processing for exports as opposed to exporting raw hides.

He said Bulawayo, for instance, was better positioned to drive the leather value chain as it has a number of SMES already doing value addition and are producing quality shoes, bags, belts and so on.

“Some of them went with us for a trade expo in Zambia recently. We also have Bata playing an important role in value addition and a leather cluster here that was supported by Comesa,” said Mr Majuru.

“We need to ride on that because we believe SMES can also assist us in making sure that leather value addition is scaled up. We need to ensure these are well capacitated and resourced to do that and with CSC this is a game changer not only for the beef but for the leather.”

Mr Majuru urged farmers and other stakeholders to invest more in quality animal husbandry practices that will enhance higher value for beef and quality leather, which feeds into processing firms.-chronicle.l.zw