‘Local companies have ramped up production’

This year’s edition of the Zimbabwe International Trade Fair (ZITF) was a roaring success as the number of exhibitors significantly increased from a year ago. There were also new entrants — the European Union (EU) delegation and Belarus. But, most importantly, there was also a strong presence of local companies that showcased their products. The Sunday Mail (SM) last week engaged Industry and Commerce Permanent Secretary Dr Mavis Sibanda (MS) on the current state of industry and many other issues.

SM: What is the strategy policy role of the Ministry of Industry and Commerce in promoting Zimbabwe’s industrial development?

MS: The Ministry of Industry and Commerce (MIC) is mandated with promoting the development of vibrant, sustainable and globally competitive industrial and commercial enterprises through the provision of enabling policy and regulatory framework.

It is important to note that the National Development Strategy 1 is now in its second half and the ministry is supporting the 10 priority value chains through the Zimbabwe National Industrial Development Policy (ZNIDP), which aims to increase productivity and enhance competitiveness; promote value addition and beneficiation of agricultural produce and minerals; revive and resuscitate ailing industries; promote new enterprise development; promote investment and export development; achieve real GDP growth and industrial development; and job creation.

SM: What are the achievements and or successes registered in industry and commerce?

MS: The manufacturing sector is now vibrant, with capacity utilisation increasing sharply since 2017 from a low level of 52,6 percent to 66 percent in 2022, according to ZimStat (Zimbabwe Statistics Agency).

On the other hand, foreign currency generation from exports of manufactured products increased by 12,9 percent from US$324 million in 2021 to US$366 million in 2022.

We have also seen the resuscitation of previously ailing companies, expansion of existing companies and establishment of new companies in the milling, cotton-to-clothing, oil expression, beverages, pharmaceuticals, fertiliser, leather, iron and steel, plastic, dairy and cement, among other sectors.

The commercial sector continues to play a tremendous role in the development of other sectors of the economy.

Notable establishments are the state-of-the-art Highlands Park Shopping Centre and Madokero Shopping Mall, all officially opened by His Excellency, President Mnangagwa. The retail and wholesale sector witnessed massive expansion and establishments in fast-moving consumer goods, hardware, furniture, clothing and motor spares across the country.

Government continues to attract investment into manufacturing and commerce.

According to the CZI 2022 Manufacturing Sector Survey, 40 percent of manufacturing firms invested in 2022 and the total investments were about US$101 million.

We, therefore, continue to attract both domestic and foreign investment through business-friendly policies, and also call upon the diaspora community to invest in Zimbabwe.

SM: We are seeing local products on the shelves; does it mean there is overall industrial revival?

MS: We witnessed an increase in shelf-space occupancy of locally manufactured goods in retail outlets from 55 percent in 2021 to 80 percent in 2022.

This is testimony that our local companies have ramped up production and also that the Local Content Strategy, which is being implemented together with Buy Zimbabwe Campaign, is bearing fruit.

SM: What is Government doing to incentivise players in the manufacturing sector?

MS: Government has come up with a number of initiatives to incentivise players in the manufacturing sector. Government introduced a revolving fund through the Industrial Development Corporation of Zimbabwe (IDCZ), where Treasury disbursed financial resources. To date, Treasury has disbursed $2,02 billion in support of this facility.

In addition, US$22,5 million has also been mobilised under the SDR funds towards industrial retooling through the Retooling for New Equipment and Replacement for the Value Chains Revolving Fund (REVCRF).

The funds are earmarked to support cotton (US$5 million), leather (US$5 million), pharmaceutical companies (US$5 million), fertiliser (US$4 million) and other agro-processing (US$3,5 million).

The participating banks are FBC, CBZ, CABS, AFC, ZB Bank, Steward, and Ecobank.

Government, through the Ministry of Finance and Economic Development, is supporting industrial retooling through various fiscal incentives, including rebate on duty for importation of capital equipment.

SM: What opportunities should Zimbabwe draw from SADC and AU to promote our policy of engagement and re-engagement as it relates to industry and commerce?

MS: The private sector in Zimbabwe should take advantage of the market opportunities available in SADC, including in sectors like agro-processing, pharmaceuticals and fertilisers, among others.

Our private sector can easily manufacture these products and export into the region, which has a market of more than 379 million people.

Similarly, the African continent has a market of 1,3 billion people and is a net importer of value-added consumer and capital goods.

Our private sector should take advantage of the African Continental Free Trade Area (AfCFTA) to manufacture these products and export into a ready market.