admin
Oliver Kazunga Senior Business Reporter—
INDUSTRY and Commerce Minister Mike Bimha says cabinet has rejected some of the recommendations on the status of industry the private sector has submitted to government.
Recently, President Mugabe requested Minister Bimha to compile a detailed report on the state of industry sector by sector with a view to finding solutions to the constraints that the private sector is facing.
“We have submitted recommendations to cabinet on the state of industry. Some of the recommendations, which I cannot divulge at the moment, have been rejected by cabinet and we will soon meet the private sector in that regard,” said Bimha in a recent interview.
The Confederation of Zimbabwe Industries (CZI) president Charles Msipa and the chief executive officer Clifford Sileya could not be reached for comment as their mobile phones were not being answered until the time of going to print yesterday.
Following the liberalisation of the economy in February 2009, industries have continued to suffer operational constraints emanating from a host of challenges in the economy, among them lack of working capital.
As a result, capacity utilisation in the manufacturing sector has remained uncompetitive resulting in the country becoming a net importer of goods, mostly basic commodities and clothing and footwear products from South Africa and Asian countries.
According to the CZI report, capacity utilisation in the manufacturing sector declined to 39.6 percent last year from 44,6 percent in 2012.
The industrial body has hinted that at least $8 billion was needed to revitalise the manufacturing sector.
To resuscitate the ailing industry, government crafted the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset), which focuses on beneficiation and value addition.
Other initiatives to help heal the economic malaise include the setting up of Special Economic Zones (SEZ) by the government and re-engaging the international community, including the Bretton Woods institutions.
SEZ is a geographical region that has laws that are more free market-oriented than a country’s typical or national laws.
The concept, among others, seeks to promote investment through measures that include tax incentives.
Bimha said government will soon adopt principles for the establishment of SEZs expected to be presented by Finance and Economic Development Minister Patrick Chinamasa. The principles for the SEZs have been crafted.
Online Reporter