New Industrial Development Policy to be launched next year

the manufacturing sector from the present levels to 100 percent.
The forthcoming policy, which is expected to anchor the country’s industrial sector for the next five years, also aims at increasing the manufacturing sector’s contribution to the Gross Domestic Product from 15 percent to 30 percent.
In the policy, which Cabinet approved in October this year, Government identified four priority sectors as the policy’s pillars, namely agro-processing, the fertilizer industry, metals, electrical goods and pharmaceuticals.
Industry and Commerce Minister, Professor Welshman Ncube told Business Chronicle yesterday that Government was preparing for the launch of the policy.
“We are preparing to launch it sometime in January,” said Prof Ncube.
At present, the country does not have an industrial policy following the expiry of the 2004-2010 trade policy.
It is also hoped that the policy seeks to enhance production capabilities and companies’ competitiveness in diverse and non-traditional sectors of the economy considered niche and high growth.
The forthcoming policy would also look at ways to re-equip and replace antiquated machinery with new technologies in the productive sectors to improve production in the manufacturing sector and thus enhance employment creation in the country.
To achieve the objectives of the Industrial Development Policy, strategies to be pursued include the creation of a bank primarily dedicated to financing short- and long-term recapitalisation of industry.
Sources of funding and the modalities for the operationalisation of the bank will be completed within six months of the policy coming into force.
The Government is also expected to identify additional lines of credit of a short- to medium-term with grace periods of three to six months and a repayment period of over 12 to 24 months and make them available to industry on priority basis.
Through this strategy, the target is to finance the procurement of raw materials, packaging materials, production consumables, laboratory chemicals, spare parts, repairs and maintenance of plant and equipment and other working capital costs.
Also as a short-term measure, Government anticipates to initiate a revival package for distressed strategic companies with a clear-cut exit policy on the basis of a revolving fund.