Online Reporter
Precious Manomano
Herald Reporter
GOVERNMENT says it is committed to enhancing support for critical value chains, particularly in agriculture and mining to improve the manufacturing sector.
This strategy is designed to capitalise on substantial output growth in these primary industries while addressing the urgent need for local production and import reduction.
One of the focal points of this initiative is the iron and steel sector, where the Government will implement a targeted action plan to tackle a US$1.9 billion import bill.
To facilitate this, a legislative review will amend S.I. 110 of 1983, reclassifying finished steel products as minerals.
This reclassification is anticipated to streamline exports and unlock new opportunities for value-added production, estimated to add 120 additional capacities to local industry.
The overarching goal is to utilise local capacities fully and decrease reliance on imported materials.
During the 2026 National Budget statement, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube emphasised the Government’s commitment to prioritising local procurement.
“Major Government infrastructure projects will now be mandated to source primary materials locally,” he said.
This directive aims to significantly reduce an unsustainable import bill for fertilisers, which surpassed US$331 million in the 2023/24 season.
The Government recognises that enhancing local production capabilities is essential for economic sustainability and growth.
“Various initiatives will be pursued to address immediate shortages by supporting Sable Chemicals’ complete plant refurbishment, enabling production of 20 000 tonnes of top-dressing fertiliser,” Minister Ncube added.
This initiative is part of a broader effort to ensure that domestic production meets rising demand. Additionally, the Mutapa Investment Fund will play a crucial role in reviving phosphate concentrate production at Dorowa Minerals, with an initial investment of US$5.3 million aimed at enhancing local capacity.
Beyond immediate needs, the Government, through the Mutapa Investment Fund, plans to mobilise resources for the expansion of rail tank wagons for Sable Chemicals.
Furthermore, the installation of a granulation plant at ZimPhos is projected to raise domestic production of basal fertiliser to 470 000 tonnes by the end of 2026.
These strategies reflect a long-term vision focused on sustainable agricultural practices and food security.
The Government has also reiterated its commitment to the Cotton-to-Clothing Value Chain by continuing to implement existing fiscal incentives.
A significant part of this strategy includes the 30/70 Percent Lint Agreement, which mandates that ginners supply at least 30percent of their lint to local spinners before exporting the remaining 70percent. This measure is crucial for guaranteeing the availability of lint for domestic processing, thus supporting local textile manufacturers and fostering job creation within the sector.
Furthermore, through the Sugar Value Chain Strategy (2026-2035), the Government aims to enhance the sugar industry by facilitating the expansion and establishment of new sugar mills and ethanol factories.
This initiative will be driven by an input support framework that aims to increase local sugar production, further emphasising the Government’s commitment to fostering economic growth through localised value chains.
Government’s comprehensive approach to supporting value chains signifies a stance toward enhancing local production and reducing reliance on imports.
By prioritising local procurement, investing in infrastructure, and fostering significant partnerships within key industries, Government is setting the stage for sustainable economic growth. Through these initiatives, it aims to create a robust manufacturing sector that can withstand global challenges and meet the needs of the local economy effectively.
