Adapt and innovate to stay in business: VP Chiwenga

Prosper Ndlovu

VICE President, Dr Constantino Chiwenga, yesterday rallied local businesses to increase strategic partnerships along value chains, as well as secure synergies with foreign counterparts as they adapt and innovate to enhance global competitiveness and resilience against unforeseen shocks.

Amid dampened global economic outlook this year, he said Zimbabwe’s solid resilience against prevailing macroeconomic shocks was commendable, with the country sustaining a positive growth trajectory.

This, he said, is in response to the comprehensive fiscal and monetary policy reform measures being implemented by the Second Republic led by President Mnangagwa, which have fortified the productive sectors of the economy and widened business opportunities across the spectrum.

Officially opening the Zimbabwe International Trade Fair (ZITF) 2023 International Business Conference in Bulawayo under the theme: “Transformative Innovation, Global Competitiveness”, Dr Chiwenga said Zimbabwe has made strides in realizing targets set out under the National Development Strategy (NDS1), which is anchored on an inclusive private sector-led growth model.

While Government continues to play its part in facilitating ease of doing business, he charged the private sector to play an active leading role in growing the economy towards the attainment of Vision 2030.

“The world is changing at an unprecedented pace, and both businesses and countries must adapt and innovate in order to stay competitive,” said Dr Chiwenga.

“We must be at the forefront of innovation, and driving change, if we are to succeed in achieving our aspirations of an empowered and prosperous middle-income economy by 2030.

“With globalization and emergence of rival economic blocs, partnerships, and competition have become more intense.”

Given this scenario, the Vice President said increased investment in innovation and forging of strategic partnerships was paramount, as economic players seek ways to competitively stand out in the ruthless international markets.

While focusing on transforming the economy and embracing technology, he warned businesses to abide by good corporate governance and desist from corruption, which not only erodes development gains but also carries risk of prosecution.

Dr Chiwenga said the Government’s wide-ranging economic reforms, coupled with the resilience of Zimbabweans, have helped restore confidence among business players, hence the country is increasing its production across sectors.

“Indeed, while the global economic outlook points to a slowdown in economic activity this year, Zimbabwe is projected to grow by at least 3.8 percent in 2023,” he said.

Dr Chiwenga made reference to strong growth in capacity utilisation by the manufacturing sector, which rose to 63 percent in 2022 from 47 percent in 2021, with more firms upgrading their technologies having poured about US$101 million in capital expenditure last year alone, according to the Confederation of Zimbabwe Industries.

These investments were aided by improved availability of forex at official platforms set by the Government, as well as increased forex earnings by companies, said the VP, adding that this trend is expected to improve this year.

“These investments have already begun to yield positive results as we have recorded significant growth in export competitiveness. Foreign direct investment has also increased as a result of investor-friendly policies,” he added.

Dr Chiwenga said Government’s heritage-based Education 5.0 was also impacting positively the economy and called for increased partnerships between producers and institutions of higher learning to enhance product competitiveness.

He said agriculture, for instance, has realised increased grain production under the Second Republic, surpassing domestic demand. This has been achieved through deliberate interventions such as climate-proof agriculture production, which is supported by the Presidential Input Scheme.

The mining sector has recorded similar milestones amid increased investor interest in the sector and growing production levels and earnings. This has been expressed in new investments in exploration, the opening of new mines, expansion of existing ones, as well as local beneficiation and value addition. In 2022, alone the mining sector generated US$5.4 billion in export revenue compared to US$2,7 billion in 2017.

The Vice President said Government was also delivering its promise on high-impact life-changing infrastructure projects such as roads, dams, schools, and health facilities, among others, which are critical in unlocking wider socio-economic growth.

“These have brought about not only direct socio-economic benefits but also created an enabling environment for businesses to thrive. Improve road networks and telecoms services have enabled businesses to reach new markets,” he said.

VP Chiwenga said progress was also being made in improving the power supply situation as evidenced by rising generation capacity at the main plants in Hwange and Kariba while more options are being explored in renewable energy and from regional partnerships.

In his capacity as Minister of Health and Child Care, the Vice President said the Government was also investing immensely in improving service delivery and ensuring equal access to all Zimbabweans in line with the National Health Strategy (2021-2025). He said Zimbabwe was also developing local medicines manufacturing capacity to reverse reliance on imported drugs, which presents a huge opportunity for investors.

The jump in international tourist arrivals by 174 percent from 380 820 to 1 043 781 in 2022 is also good news for Zimbabwe’s economy, said Dr Chiwenga, noting that this trend has already been amplified by the increase in hotel construction and more airlines coming into Zimbabwe.

On a broader scale, he said the Second Republic was driving rural industrialization through increased investments in projects that seek to unlock business potential in communities such as farming, rural electrification, dam construction, and irrigation development.

This drive is being compounded by the discovery and exploitation of more mineral resources in rural areas, thereby creating new, rural-based economic activity as never seen before, said VP Chiwenga.

As Zimbabwe prepares for the harmonised elections sometime this year, the Vice President urged all Zimbabweans to uphold values of peace, love and unity, tolerance, and harmony.

“Let us all play our part to ensure that our elections are held in a peaceful environment. Peace is critical for economic development and we should now allow anything to derail our economic transformation trajectory,” he said.

Dr Chiwenga commended the successful hosting of the conference by the ZITF Company in collaboration with the National Economic Consultative Forum (NECF).

The event is a key highlight of the ZITF and brought together policymakers, the private sector, foreign exhibitors and diplomats, civic society, and the international business community to chart a new course in the economic trajectory.