Industry on recovery path: President

Prosper Ndlovu Business Editor—
ZIMBABWE’S manufacturing industry is on a recovery path as evidenced by the resuscitation of several distressed firms in different sectors and the establishment of new companies that have created more jobs, President Mugabe said yesterday. In his address during the 36th independence anniversary celebrations, the President expressed hope that the economy was on a positive footing towards improved performance despite illegal Western sanctions.

Guided by the 10-point plan he launched last year, and the broader framework of the five-year national blueprint, Zim-Asset, he said key economic sectors were poised for growth in the short to medium term.

“We’ve seen in the manufacturing sector a resuscitation of distressed companies and formation of completely new companies in the past few years. The resuscitated companies include Lobel’s Bread, Cairns Holdings, Rio-Zim, Blue-Ribbon Foods, Delta Corporation, Arenel, Olivine Industries, Border Timbers, Cotton Company of Zimbabwe (Cottco) and Caps Pharmaceuticals among others,” said President Mugabe.

“But the new entrants, new companies and those that have expanded their operations in the domestic economy include Pure Oil Company, Safex Investment, Brafax Holdings, Feed Mix, Profeeds, Grafax Holdings, Divipel, Noble, Novatex, Cafalos, Ninjanox just to mention a few.

“The resuscitation, formation and expansion of these and other companies has greatly assisted us in preserving employment, creating new jobs, saving foreign currency, enhancing fiscal space and increased production,” the President said. He also said ailing parastatals such as the National Railways of Zimbabwe (NRZ) and the national carrier, Air Zimbabwe, were “now steadily on way to resuscitation”.

President Mugabe said the government was committed to normalising relations with the international community and that an exercise to clear the country’s external debt of close to $10 billion was underway to facilitate access to fresh lines of credit.

He said critical attention was being given to the agricultural sector, the backbone of the country’s economy, with the government working with financial institutions to conclude the bankability of the 99-year leases to capacitate farmers to have security of tenure for both A1 and A2 categories.

The President also said the consolidation of ownership of diamond concessions as well as strategic exploitation of national gold reserves would assist long term growth targets. He applauded the gold mining sector, which he said has shown robust improvement with deliveries clocking 22 tonnes and expected to reach 25,5 tonnes by the end of the year.