Leather industry apex body set up

Business Editor
THE Ministry of Industry and Commerce has set up a steering committee to spearhead the formation of the Zimbabwe Leather Development Council (ZLDC), an apex body that will champion the revival of the leather industry in the country. The move is part of the implementation process of the Zimbabwe Leather Development Strategy that was launched in September 2013.

The main objective of the strategy is to transform Zimbabwe’s leather value chain from production and export of raw hides and skins to the production and export of value added products such as finished leather, footwear and other leather garments.

Industry and Commerce Deputy Minister Chiratidzo Mabuwa told Parliament last week that an agreement had been reached with players in the industry to set up a new apex body.

“My ministry has since agreed with industry and has created a steering committee to spearhead the formation of an apex body in the leather value chain under the name Zimbabwe Leather Development Council (ZLDC). The apex body is set to receive €500,000 from the Comesa fund,” she said.

The Deputy Minister also reported that the ministry, with the assistance of UNIDO, had crafted a document mapping strategies towards revitalisation of the pharmaceutical industry in Zimbabwe.

“The document forms the basis for the development of the Pharmaceutical Industry Development Strategy. In addition . . . my ministry has facilitated the reduction of duty on raw materials used in the manufacture of pharmaceutical products,” she said.

Mabuwa said resource mobilisation remains key for resuscitating industry and the Distressed and Marginalised Areas Fund (Dimaf) and the Zimbabwe Economic and Trade Revival Facility (Zetref) were being consolidated to boost firms’ operational capacity.

She said the ministry had managed to negotiate for a rollover of some loans obtained under Dimaf from a repayment period of 12 to 24 months to a period of 24 to 36 months.

The Deputy Minister reiterated the need for a quick review of labour laws to facilitate wage settlement linked to productivity and creation of a flexible and vibrant labour market that enhances job creation while being an incentive for investment.

In its quest to revamp the economy, the government has set up two committees, one to look at ease of doing business and the other looking at cost of doing business, with a view to addressing issues surrounding attracting foreign direct investment and competitiveness.

Zimbabwe is ranked number 171 out of 189 on the 2014 World Bank doing business and 124 out of 144 in the World Economic Forum global competitiveness report for 2014/15 industry.

Meanwhile, Mabuwa announced that her ministry has, in line with the Industrial Development Policy (IDP), facilitated the extension of the rebate of duty on imported raw materials for use by all bona-fide clothing manufacturers by a further period of one year to 31 December 2015.

She urged local businesses and individuals to support the government by buying local products to curb imports.

“Local procurement by both public and private sector can be an internal stimulus measure to support a number of sectors,” said Mabuwa.