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Industries symposium on indigenisation, the manufacturing sector representative body’s president, Mr Joseph Kanyekanye, said firms in sector required not more than five years to fully implement their indigenisation plans.
“The indigenisation programme is not an imposition and will ensure that the benefits of our country’s productive industries are more widely distributed.
“In respect of its implementation, the indigenisation drive is taking into account the sector-specific conditions.
“For the manufacturing sector in particular we may need a timescale for implementation of three to five years,” he said.
Zimbabwe’s indigenisation programme seeks to empower indigenous Zimbabweans by giving them an opportunity to acquire equity in foreign-owned firms.
In terms of the law, foreign-owned firms are required to sell off a minimum of 51 percent of their equity to locals.
Some participants at the meeting called upon the Government to expedite the advancement of value addition in the economy, which has the resultant effect of boosting equity in manufacturing firms and in turn widen the benefits of the indigenisation programme.
Addressing participants at the same event, Minister of Youth Development, Indigenisation and Empowerment Saviour Kasukuwere said his ministry was pushing for increased local procurement of goods by the Government to support the country’s productive sectors.
“Government as the largest consumer should support the local manufacturing industries by procuring most of its products locally, because frankly some of the things that we import are not necessary.
“The issue of procurement is one which we will also look at in the indigenisation drive. My ministry has since begun to implement strategies in this respect,” he said.
Analysts contend that the country’s high level of imports is tantamount to importing jobs, which is worsening the unemployment situation in the country. Official statistics show that unemployment is presently in excess of 80 percent.
“There is definite need for the Government to provide protection for local industries. The country is under sanctions and we cannot talk of an open market when our economy is under siege already,” said Minister Kasukuwere.
He lamented widespread company closures in the country’s second largest city, Bulawayo.
“The massive number of company closures in Bulawayo is shocking, and the firms are going under judicial management to easily.
“Bulawayo is an industrial hub and there is need to ensure that its stays that way. But there is also the concern that the majority of companies in the city procure most of their materials from outside the country, which should be addressed,” he said.
The local manufacturing sector has been facing capacity constraints as a result of limited availability of working capital, the use of antiquated machinery, and the impact of cheap imports.
Industrial capacity last year averaged around 45 percent.
Online Reporter