Govt ready to launch industrial policy

Commerce Deputy Minister Mike Bimha recently said the policy, that would be launched in the next two weeks, recognised the textile industry as one of the key sectors of the mainstream economy.
He was addressing delegates attending the 10th African Cotton Association Annual Congress held in Victoria Falls last week.
“The IDP seeks to promote value addition with a view of transforming the sector from being a net exporter or primary agro products such as seed cotton, lint and soya meal to an exporter of processed products like apparel and fabric garments,” said Deputy Minister Bimha.
“It will also help in the creation of a conducive business environment characterised by economic, social and political stability.”
He also revealed that the policy would set the stage for continuous consultations with industry representatives such as Cotton Ginners’ Association of Zimbabwe, Association of the Clothing and Textile Manufacturers of Zimbabwe, Confederation of Zimbabwe Industries, Zimbabwe National Chamber of Commerce, Business Council of Zimbabwe and the National Economic Consultative Forum.
“This will also be facilitated through visits to countries such as India and China so that companies can see the latest production methods that make the final product much cheaper on the international market,” he said.
The IDP, he said, would also ensure that the textile industry got protection in the short term as per World Trade Organisation rules and institutions while promoting the integration of the country into the mainstream of world trade.
“Efforts through the National; Trade Policy (20112015) will allow a tariff rationalisation in which the Government will regularly review import tariff structures on customs duty and Value Added Tax on industrial raw materials and packaging to level the playing field for locally produced goods,” he said.
Officially opening the congress, Agriculture, Mechanisation and Irrigation Development Deputy Minister Seiso Moyo urged the cotton fraternity not to price itself out of competition by setting unviable seed cotton prices that would eventually force farmers to invest in alternative crops.
“The survival of the cotton industry hinges on the willingness of the farmer to continue growing the crop and for this to happen there has to be meaningful returns.
“As Government we believe in market forces and, more importantly, in the right of companies to set prices to leverage on global market opportunities,” he said.
Additionally, Deputy Minister Moyo said, Government had facilitated the establishment of a production framework by means of Statutory Instrument 142 of 2009 as amended in SI 63 of 2011 through an all-inclusive and intricate stakeholder consultative process. “The framework also ensures that contractors provide adequate inputs to farmers and meet their contractual obligations.
“It also seeks to bring farmer to ginner partnerships, orderliness, fairness, timeliness, reliability, consistency in volumes, quality and most importantly presentation of a product that competes on global,” he said.
He lauded the opening up of the Cotton Marketing Board monopoly to a total of 14 companies involved in the business of cotton production and marketing.
This, he said, was achieved with great determination to allow growth in the sector and empower the private investor, the farmer, at the same            time.
Cotton is an important source of employment in Zimbabwe and grows under arid conditions.
More than 250 000 farmers in these dry regions grow the crop and on average each crops between 2ha and 3ha with the crop per year, he said.
Speaking at the same occasion, chairman of the African Cotton Association Mr Iya Mohammed said cotton is a powerful factor in regional development. It helped small and neglected towns to grow and prosper, thanks to the ginning factories that slow down rural exodus to towns.
“Ginning factories now exist in hundreds. They are the nerve centre of small towns and include development of production activities that stimulate the building up of the basic economic system,” he said.
Cotton is present in the four major regions of Africa — North Africa, West Africa, East and Southern Africa and Central Africa.
It is one of the major cash crops and a major source of livelihood for many families on the continent.
About 25 million Africans draw most of their incomes from cotton.
The 10 ACA Annual Congress will run until Saturday. ACA was formed 10 years ago by 10 active member cotton companies. Today it boasts 68 members.