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Business Reporter
GOVERNMENT will soon commission a research study on how the country’s manufacturing industry could be used to drive rapid economic transformation with bias on revitalising the steel sector.
Following the demise of the Zimbabwe Iron and Steel Company (Zisco) at the height of hyperinflation in 2008, the local steel manufacturing value chain remains fragile, resulting in the country spending nearly US$1 billion importing steel related products annually, according to official statistics.
Industry and Commerce Minister, Dr Sekai Nzenza, has said a new process to identify a successful investor to resuscitate Zisco was underway, and that at least nine suitors have expressed interest.
“An adjudication process has commenced and will result in the shortlisting of the potential investors,” she said last Friday.
Given huge iron ore deposits in Zimbabwe, industry experts and Government are convinced that a comprehensive approach to harness the resource through revival of steel manufacturing, would bolster economic transformation.
At present the manufacturing capacity utilisation hovers below 50 percent, having been constrained by a range of factors, including the adverse impact of Covid-19.
To buttress the existing policy measures and the on-going fiscal support interventions, a research study will be conducted, within an estimated execution period of 30 days, to assist the Government and the private sector to make critical investment decisions.
In a recent notice issued through Parliament, the Government is seeking the services of a consultancy firm to execute the study exercise on
“Zimbabwe’s Manufacturing Sector as an Anchor for Rapid Economic Transformation: Prioritising the Resuscitation of the Steel Industry”.
The study would be financed using resources availed to the Government as a grant by the African Development Fund (ADF) toward the cost of the Tax and Accountability Enhancement Project (TAEP). “Government . . . intends to apply part of the agreed amount for this grant to payments under the contract for a ‘Research on Zimbabwe’s Manufacturing Sector as an Anchor for Rapid Economic Transformation: Prioritising the Resuscitation of the Steel Industry,’” reads part of the notice.
Parliament has stated that, among others, the services included under this research project include: identifying policy gaps among the interventions for prescribing corrective measures, collecting information from the Ministry of Industry and Commerce, business and industry and other relevant institutions on challenges affecting players in the sector with specific reference to case studies.
The study would also outline experiences of other countries like Rwanda, China, South Africa and Singapore, as well as give recommendations on policy and practices needed to effectively deal with the challenges facing the manufacturing sector and what should be done by the government of Zimbabwe to re-industrialise.
At the core of this study is the need to enhance the contribution of the manufacturing sector to the desired 30 percent of Gross Domestic Product.
This is envisaged to be achieved through identifying specific training needs for the Industry and Commerce committee, facilitating a training workshop where dissemination of research findings, validation of research report and training of members of Parliament and staff.
“The estimated period of execution is 30 days. The Parliament of Zimbabwe invites eligible firms to indicate their interest in providing these services,” reads the notice.
“The assignment requires a consultancy firm with prior experience in conducting researches and facilitating trainings.
“The firm must have a good understanding of the manufacturing industry in Zimbabwe. Consultants may constitute joint-ventures to enhance their chances of qualification.”
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