Industrial development policy under review

Canditar Chapanduka, Business Reporter

GOVERNMENT is reviewing the Zimbabwe Industrial Development Policy which is set to expire by year end while at the same time it is seized with developing local content thresholds for the pharmaceuticals, fertiliser, and packaging sectors.

Last week, Industry and Commerce permanent secretary, Dr Mavis Sibanda told participants during a value chain review workshop in Bulawayo that the planned local content strategy will ensure the localisation of some parts of value chains and should be able to benefit more through the multiplier effect

“The current Zimbabwe Industrial Development Policy will be expiring at the end of 2023 and we are in the process of reviewing it. Your continued participation in this thought process is very key in coming up with strategies and interventions that speak to our transformative agenda,” said Dr Sibanda.

With regards to the Local Content Strategy, we are currently working on developing local content thresholds for the Pharmaceuticals, Fertiliser, and Packaging sectors.

“The process will ensure the localisation of some parts of value chains and should be able to benefit more through the multiplier effect.”

The Zimbabwe National Industrial Development Policy (ZNIDP) 2019-2023, approved together with the Local Content Strategy (LCP), is underpinned by a focus on growing the country’s manufacturing sector that has been facing a number of challenges over the past few years.

It set a target of attaining manufacturing sector growth rate of at least 2 percent per annum and manufacturing value-added growth of 16 percent per year.

Other key components in the policy are around raising the manufacturing sector’s value added growth to 16 percent per year and increasing merchandise export growth rate of 10 percent per year to orient the manufacturing sector toward exports and generate capital for a high savings rate, again this coincides with the LCS which also outlines the need to increase manufactured exports by 5 percent annually between 2019 and 2023.

Dr Sibanda reiterated that the Government will continue to render its support towards strengthening value chains through the import management programme.

She said the programme is aiming at supporting local industries to build production capacity and be more competitive in readiness to participate in regional, continental, and global value chains.