Chronicle Editor
Prosper Ndlovu, Business Editor
INDUSTRY and Commerce Minister, Dr Sekai Nzenza has directed the Industrial Development Corporation of Zimbabwe (IDCZ) to use its strategic position to drive import substitution and enhance export-led economic growth.
The call comes at a time when the economy is facing a number of challenges — worsened by the disruptive outbreak of Covid-19 — which require bold steps to achieve sustainable growth.
As a wholly owned Government industrial unit, the IDCZ could play a crucial role in the economy in supporting value addition through industrial processes and capital formation, wealth creation, employment creation and industrial development.
Given the disruption in the global supply chains, Zimbabwe will have to swiftly move and ensure that it manufactures products that would ordinarily be imported.
In her remarks during her first meeting with the newly appointed IDCZ board in Harare yesterday, Dr Nzenza said the need to substitute imports has never been so urgent than now. President Mnangagwa recently approved the appointment of a new board for the IDCZ led by veteran industrialisa, Mr Charles Msipa.
“It is critical that IDCZ upholds this task now more than ever given challenges our country is facing ranging from high dependence on imported consumer products to capital equipment, at a time when our foreign currency earnings are depressed due to recurrent droughts and more recently the impact of the Covid-19 pandemic,” said the minister.
“I, therefore, would like to task you as a board to seriously consider strategies for import substitution and local value chains.”
She said Government was already working on the fertiliser value chain, pharmaceutical value chain, cotton-to-clothing value chain and leather value chain. As such, Minister Nzenza called upon IDCZ board to complement Government efforts to revive the domestic industry. In addition to import substitution strategies, she said Government’s desire was to push increased manufactured exports.
“I, therefore, request that you come up with export-led growth strategies, which identify short run, medium and long term work plans,” said Dr Nzenza.
In view of the adverse impact of Covid-19, Government has availed an $18 million stimulus package to cushion the productive sectors and stabilise the economy. In that regard, Dr Nzenza said her ministry was engaging Treasury seeking support for Sable Chemical Industries Limited and Chemplex Corporation.
“The board is called upon to come up with strategies for reviving all IDCZ companies in support of the ministry’s strategic goals,” she said.
IDCZ has an investment portfolio in the motor and transport sector (Willowvale Motor Industries and Deven Engineering), fertiliser and chemicals (Chemplex Corporation Ltd), cement (SINO Zimbabwe Cement Company), and agro-processing (Olivine Industries Zimbabwe and Surface Wilmar Zimbabwe). The unit also has investments in textiles (Afroran Spinners (Pvt) Ltd), packaging (Zimbabwe Grain Bag), insurance (Allied Insurance Company (Pvt) Ltd) and real estate (Sunway City (Pvt) Ltd).
In the 2020 national budget, Government made a provision of ZWL$240 million as seed capital to revive the IDCZ lending function.
“I call upon the board to play an active role and ensure the necessary accountability for the funds,” said Dr Nzenza.
She also called upon the new board to engage investors in the special economic zones across the country as well as development of infrastructure, which include roads, electricity, water and sanitation, internet optic fibre, and factory shells.
As Government makes frantic efforts to revive the manufacturing industry in an effort to boost production and create employment, Dr Nzenza hoped the new board would fully apply itself to the task at hand and assist the country in growing the economy.
Online Reporter