Zimbabwe scales up value-chain development drive
ZIMBABWE is scaling up its domestic value chain development drive as a key pillar to driving robust economic transformation and trade, Industry and Commerce Permanent Secretary, Dr Mavis Sibanda, has said.
In a speech read on her behalf by a senior director in her ministry, Mr Denford Nhema during a recent value chain review workshop in Bulawayo, Dr Sibanda said the Government was prioritising investments in value addition and production of sophisticated manufactured products, taking advantage of the country’s endowments and innovations from universities.
The National Development Strategy (NDS1) prioritises value chain development where 10 priority value chains have been identified for industrial growth and structural transformation.
Dr Mavis Sibanda
Dr Sibanda said the private sector has already embraced the transformative drive with the Government chipping in through launching two revolving funds targeting the retooling of industry and the tourism sectors.
The US$22,5 million Retooling for New Equipment and Replacement for the Value Chain Revolving Fund and the Tourism Facilities/ Services Development and Upgrading Revolving Fund were launched by Finance and Economic Development Minister, Professor Mthuli Ncube after signing memoranda of understanding with the Ministries of Industry and Commerce and Environment, Climate, Tourism and Hospitality Industry recently.
The targeted value chains include, fertiliser, pharmaceuticals, cotton, sugar, leather, metal casting, soya bean and dairy value chain.
National Development Strategy 1 (NDS1)
“I call upon you all our stakeholders to draw inspiration from the Asian manufacturing sectors that rose from challenging circumstances and low productivity, to become the industrial shining stars that they are today,” said Dr Sibanda.
“As a nation, we aspire to achieve similar transformation, leveraging on our resources, especially our people. We would like to see our industry participate significantly in regional value chains: in Comesa, Sadc, AfCFTA, and also in the global context.
“The regional bodies have developed policies, strategies and programmes that coherently speak from the same perspective of building strong domestic and regional value chains. It is exceedingly important that we leverage on the opportunities brought by these developments.”
The permanent secretary said such regional integration brings with it a lot of competition and in turn the country needs to continue building solid capacities and capabilities, not only to grow the industry, but also to survive in the market place.
During presentations, different value chains representatives expressed concern over the operating environment saying many challenges are being faced including competition from imported products, shortage of finance and unfavourable tax regimes, which end up forcing an increase in final pricing to consumers.
“The other challenge we have is that we are violating our own Statutory Instruments, which are established to protect local manufacturing industries like restriction on importation of medicines, which are locally produced but of late we have seen importation of products that are competing with us,” said Mr Donald Mabhiza the pharmaceutical value chain.
AfCFTA
Mr Innocent Sigwadi who spoke on soya value chain said there should be a way to stop importation of soya beans during harvesting time so that local farmers will be able to sell their produce without competition from imports.
He said there is also need for the country to find ways of improving output from the agricultural sector saying that even the country is producing non-genetic modified foods, people end up consuming them from the products, which are being imported.-chronicle
