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Business Reporter
THE 2014 national budget should focus on promoting the growth of the agro-business sector that accounts for an estimated 60 percent of manufacturing value-added products and about 30 percent employment.
The Zimbabwe Congress of Trade Union (ZCTU) said this in its submission to the upcoming fiscal policy statement.
Finance and Economic Development Minister Patrick Chinamasa is expected to present the long-awaited national budget statement on Thursday next week.
“In line with the Industrial Development Policy (2012-2016) launched by Government in March 2012 which seeks to transform Zimbabwe from a producer of primary goods to a producer of value-added goods for domestic and export markets, the budget should prioritise the agro-business sub-sector given its importance in the agricultural sector in Zimbabwe.
“The agro-industries account for approximately 60 percent of manufacturing value-added goods and about 30 percent of employment,” said the trade union in its position paper.
The agro-business subsector consists of food, beverages, tobacco, clothing and textile, leather and leather products as well as wood and furniture.
It said the budget statement should focus on rebuilding and strengthening the eight agriculture commodity industry groups comprising horticulture, livestock and meat, legumes and oilseeds, tree crops, grains, cotton, tobacco, forestry and timber.
“Useful lessons for capacity building support across selected value chains, as well as programme governance can be drawn from the interventions to support and strengthen agri-business value chains by bilateral and multilateral international partners who have initiated such programmes since 2009.”
ZCTU said it was also imperative for the country to revive the Social Contract Negotiations under the aegis of the Tripartite Negotiating Forum (TNF).
“The 2014 budget should therefore take advantage of the progress made in the development of the Social Contract Bill to provide for a statutory and independent framework for the TNF so that stakeholder participation throughout the budget cycle is institutionalised.
“The strong reforms required to sustain growth and recovery at the expected levels of at least 7,1 percent would be achievable when the TNF adopts active measures to address the existing structural bottlenecks moderating growth, including the high public sector employment costs, poorly maintained infrastructure, liquidity problems being fanned by lack of confidence among financial sector stakeholders, the poor business climate that has been associated with persistent closure of firms, among others.
“The TNF could easily adopt and implement “doing business” reforms which are not complicated at all, and yet they can make a huge difference.”
It said the 2014 national budget should take advantage of the progress already achieved in the TNF.
“For instance, the National Productivity Institute that was launched in 2003 has not been implemented as it has never been allocated resources. Yet its mandate is to change the mindsets among local stakeholders and unleash a productivity-oriented culture and practice sector-by-sector.
“In view of the importance of growing the economy as a basis for improved well-being of Zimbabweans under the active policy reform scenario, reviving the NPI is a useful starting point because it has already adopted an aggressive approach towards enhancing national productivity and competitiveness through a sector-focused approach,” said ZCTU.
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