Vusumuzi Dube
Judith Phiri, Business Reporter
THE capacity utilisation of the manufacturing sector is said to be on an upward trend over the past years in the country as the Government under the Second Republic intensifies value addition and beneficiation of industries in provinces and districts where resource endowments are domiciled.
The local industrial sector remains a cornerstone of Zimbabwe’s economic development and in 2023, there were significant capital equipment investments that contributed to increased capacity utilisation.
Cabinet on Tuesday considered the report on the State of the Local Industry, as presented by the Minister of Industry and Commerce, Nqobizitha Mangaliso Ndlovu.
In a post-Cabinet briefing, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the report centred on the manufacturing sector’s performance under the Second Republic, specifically focusing on the sector’s contribution to the country’s gross domestic product (GDP) and capacity utilisation.
He said it also focuses on employment, exports, and investments among other performance indicators.
“Furthermore, the report highlights the challenges faced by the manufacturing sector and proffers some policy interventions required to support the growth and development of local industry. The manufacturing sector remains highly diversified consisting of 94 sub-sectors that produce over 7 000 products,” he said.
Dr Muswere said aprogramme will be implemented that will ensure the identification and utilisation of unutilised factory shells and other industry infrastructure is put in place.
He said the manufacturing sector has the greatest multiplier effect in terms of employment through the creation of downstream jobs.
The Minister added: “In order to foster growth opportunities in the manufacturing sector, the Government is in support of import substitution and targeting local production as well as supporting investments in the sector.”
He said in line with the devolution thrust and the rural industrialisation, the Ministry of Industry and Commerce was working with other sister Ministries and local authorities on value addition and beneficiation of industries in provinces and districts where resource endowments are found.
Zimbabwe is richly endowed with natural resources which include renewables (land; forest, water; wildlife; sunshine) and non-renewables (oil; gas; minerals) among others.
The exploitation of these natural resources present immense opportunities to sustain high levels of income-based resource rents.
Bongani Ndlovu
Online Reporter