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Business Correspondent
The Government will prioritise the revival of key sectors of the economy such as tourism, agriculture and manufacturing, Deputy Minister of Finance and Economic Development Dr Samuel Undenge has said.Addressing delegates at the Confederation of Zimbabwe Industries (CZI) annual congress in Bulawayo week, Dr Undenge said the economy was operating under a difficult environment, characterised by sanctions, external debt overhang and massive de-industrialisation.
He said the economy also faced huge demands on a small budget, low savings and investment ratios, the absence of foreign direct budgetary support, weak institutional capacity and international reserves, among others.
“The Government intends to develop infrastructure and creating an enabling environment for foreign and domestic investment and business growth and social delivery. With infrastructure development, Government will prioritise power, water, roads, airports and railways, among others,” said Dr Undenge.
He said the Government sought to revamp the energy sector which was facing challenges in meeting demand.
“Under electricity sector, the Government seeks to install new generation capacity for industry, agriculture, households as well as rural electrification. Water infrastructure will be earmarked to meet the demands of industry, agriculture and households,” said Dr Undenge.
He said the Government also intended to revive the manufacturing sector which was operating far below capacity.
“In manufacturing, the Government’s thrust is value addition and beneficiation, increasing capacity utilisation as well as the creation of new capacity. Currently, the average capacity utilisation in industry is less than 39%. Decline in capacity utilisation translates into decline in tax revenue collection as companies realise lower profits,” said the minister.
“Beneficiation of our mineral resources and exploration will also be prioritised. The Government aims to ensure that the country maximises its benefit from mineral resources. The Government will also seek to increase the production of gold, platinum, diamonds, chrome, among other minerals.”
He said the Government also intended to foster linkages between the productive sectors of the economy.
Online Reporter