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Oliver Kazunga, Senior Business Reporter
THE success of policy reforms under Transitional Stabilisation Programme (TSP) should be underpinned by value added exports, Industry and Commerce Minister, Mangaliso Ndlovu, has said.
The TSP is Government’s short-term economic blueprint (2018-2020) aimed at stabilising the macro-economic environment and building towards an upper middle-income economy by 2030.
Addressing the 2019 ZimTrade Annual Exporters’ Conference in Bulawayo last week, Minister Ndlovu said a positive economic growth trajectory was possible.
“The country’s current growth trajectory is framed within the context of the TSP, which has articulated several reforms underpinning our development agenda. The success of these reforms, hinges to a great extent on the country being able to grow our exports and particularly, those of value-added products,” he said.
Government has already launched the Zimbabwe National Industrialisation Policy, which guides the country’s industrialisation trajectory over the next five years.
Minister Ndlovu said the policy was anchored on investment, innovation and export development.
“I have consistently implored my constituency of industrialists to be aggressive in the export arena and take advantage of Government re-engagement drive.
“Indeed, we are witnessing a surge in exports by the manufacturing sector, notwithstanding the several challenges faced by all participants in the economy,” he said.
The Minister said the country’s total manufacturing exports for the first six months of the year stood at US$126,5 million and this was a positive indicator considering the above-mentioned challenges that local industry has had to contend with during the year.
Zimbabwe has also embarked on a re-engagement drive with the rest of the world with a view to attracting investment and trade.
As such, Minister Ndlovu said his ministry was also working on the development and strengthening of value chains, some of which cut across multiple sectors like agriculture, mining, manufacturing and/or services.
“In this regard, I want to encourage increased production of agricultural products such as maize, wheat, cotton, soya beans, all of which are essential raw materials for industry.
“The agricultural sector provides more than 60 percent of raw materials for the manufacturing sector. Industry also provides numerous products that are inputs in agriculture and mining, thus contributing indirectly to the country’s export basket,” he said.
Through the Zimbabwe Special Economic Zones Authority, Government is also availing a cocktail of incentives targeted at value adding and export-oriented businesses.
In his progress report on reforms for the month of October, Finance and Economic Development Minister Professor Mthuli Ncube, said because of the ongoing reforms, the prevailing foreign exchange market rates and inflationary pressures prevailing in the economy are expected to ease as Government continues to implement macro-fiscal stabilisation measures.
As a result, the economy is expected to rebound beginning next year and beyond and the projected growth trajectory will add impetus to the development and competitiveness of Zimbabwe’s exports and improved foreign currency earnings.
So far, the implementation of reforms outlined in the TSP has brought notable milestones on fiscal consolidation, monetary policy restoration, liberalisation of the foreign exchange market, structural and governance reforms, re-engagement, investment promotion and support for the productive sectors. — @okazunga.
Online Reporter