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Zimbabwe is moving onwards achieving Vision 2030 which entails the country becoming an upper middle income society. The Herald is serialising the Vision 2030 every Thursday for the benefit of our readers.
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One Stop Shop Investment Centre
A One Stop Shop Investment Centre is being operationalised as part of Vision 2030, through the Zimbabwe Investment and Development Agency.
The new Zimbabwe Investment and Development Agency will embrace and integrate the following institutions:
- The Special Economic Zones Authority;
- Zimbabwe Investment Authority; and
- The Joint Venture Unit.
The necessary Statutes to give legal effect to the new Zimbabwe Investment and Development Agency will be enacted by December 2018.
The operationalisation of the Zimbabwe Investment and Development Agency is being facilitated by secondment of personnel from various Ministries, Departments and Agencies.
Inter-agency personnel was seconded from:
- Office of the President and Cabinet;
- Ministry of Finance and Economic Development;
- Ministry of Industry, Commerce and Enterprise Development;
- Ministry of Local Government, Public Works and National Housing;
- Ministry of Lands, Agriculture, water, Climate and Rural Resettlement;
- Ministry of Justice and Parliamentary Affairs;
- Reserve Bank;
- Zimbabwe Revenue Authority;
- Attorney General’s Office;
- Environmental Management Agency;
- Deeds Office; and
- Department of Immigration.
Indigenisation Legislation Reform
Vision 2030 recognises the need to open investment to all investors, regardless of origin.
Zimbabwe’s legislation on indigenisation had constrained foreign ownership of local businesses and discouraged much needed investment.
Following repeal of the Indigenisation and Economic Empowerment Act through the Finance Act of 2018, a new policy on diamonds and platinum is now in place.
Agriculture
The thrust of agriculture, under Vision 2030, is to create a self-sufficient and food surplus economy that will see the re-emergence of Zimbabwe as the ‘Bread Basket’ of Southern Africa.
Land utilisation
Following completion of the land allocation phase of the Land Reform Programme, the thrust is on full, efficient and sustainable utilisation of allocated land, leading to increased production and investment on the land.
Farm mechanisation
Vision 2030 will prioritise improving agricultural productivity through promotion of market based investments in sustainable farm mechanisation programmes that improve farmer access to agricultural equipment and implements, under either purchase or leasing arrangements.
Agricultural research & development
The attainment of food security and nutrition will be premised on strong research and development undertakings, coupled with the use of advanced technologies, including at the village level.
Agriculture financing & farmer incubation
Government recognises that in the interim, the new farmer would need to be incubated and learn the ropes, necessitating adoption of collaborative financing models by Government and the private sector.
Vision 2030 focuses Government on supporting vulnerable households, while private sector and commercial bank finance will be required to fully take up its rightful role of adequately financing agriculture, particularly A2 and A1 farmers.
In this regard, Government recognises 99 Year leases and A1 Permits as legal and bankable documents that should facilitate farmers’ access to financing.
The individual farmer will remain responsible and accountable for honouring repayment of obligations arising under extended financing facilities.
Extension services
Government will, however, continue with its facilitative role in the areas of:
- Agricultural research;
- Farmer education, crop agronomy and animal husbandry best practices;
- Disease and pest control; and
- Public infrastructure facilities, such as provision and seasonal maintenance of roads.
Marketing
Vision 2030 also envisages Government improving farmer access to markets for agricultural produce.
The range of commodities benefiting from current marketing arrangements is limited to dairy, cotton, tobacco and such grains as maize, soya beans and wheat.
Lack of market access increases post-harvest losses, undermining farmers’ earnings, as absence of markets often leaves farm produce to either rot or disposed at give-away prices.
Expansion of marketing arrangements to close marketing gaps will also encompass re-establishment of commodity exchange markets.
Climate change mitigation
Government, in conjunction with development partners, will broaden climate change mitigation and adaptation activities to include critical elements such as water management and harvesting measures to mitigate the effects of drought, respect for biodiversity and wetland management issues.
Irrigation development
Vision 2030 recognises that absence of irrigation infrastructure facilities increases vulnerability of agriculture to droughts. This is notwithstanding substantial Government investments in the development of water bodies with irrigation potential.
To address this, Government will implement an Irrigation Master Plan to rehabilitate and establish smallholder farmer irrigation facilities covering 200 hectares per Administrative District, per year for the next 10 years.
Vision 2030 also prioritises facilitation of access to financing by A2 and large scale farmers for the rehabilitation, resuscitation, modernisation and development of end-use irrigation infrastructure.
Horticulture & livestock
Vision 2030 also prioritises resuscitation of horticulture production and exports, as well as livestock development, targeting dairy production anchored on small scale dairy farmers, as well as resuscitation of the Cold Storage Company, also targeting resumption of beef exports.
Mining
Vision 2030 will leverage on its diversified mineral resource base of over 55 exploitable minerals to help grow the economy.
Beneficiation
The thrust of Vision 2030 will be on exports of beneficiated minerals, and away from raw mineral exports, that way enhancing benefits from the country’s minerals.
This will be realised through support for local processing of Zimbabwe’s diverse mineral resource endowment, with thresholds for beneficiation and value addition spelt out.
Envisaged investments involve beneficiation of such minerals as platinum, chrome, lithium, nickel, diamond cutting and polishing, copper, gold and coal, with strengthening of linkages along the mineral value chain.
Investors should, therefore, take advantage of the smelting and refining opportunities this presents, including increased scope for exploration.
Artisanal miners
Further, while ensuring that there is no degradation of the environment, Government will harness the potential of artisanal, small scale miners and cooperatives to grow the mining sector, thus, providing throughput for value addition and beneficiation.
Mining & the environment
Vision 2030 will ensure sustainable mining by stakeholders through a well governed mining sector which is ethically inclusive, environmentally friendly, socially responsible and appreciated by surrounding communities.
Exploration
Effective exploitation of Zimbabwe’s diverse underground mineral resource endowment will be enhanced through concerted investment in geological surveys and mineral exploration.
Manufacturing
Vision 2030 posits increased use of ICT, innovation, technological advancement, research and development in order to boost productivity, competitiveness and efficiency levels in the manufacturing industry.
A diversified and competitive manufacturing sector will be the key driver of economic transformation, from a largely commodity dependent economy to a knowledge driven secondary and tertiary economy.
The sector is envisaged to contribute at least 25 percent to GDP, and be a major source of decent jobs, as the economy moves from informality to formality.
In this regard, Government will provide incentives for research and development to support value addition and beneficiation strategies in such areas as pharmaceuticals.
Special Economic Zones
In the manufacturing sector, Government will establish Special Economic Zones and resuscitate distressed and closed companies with a view to generate employment, substitute imports as well as build a sustainable base for high value export led growth.
The resuscitation and growth of the manufacturing sector will also be premised on resumption of operations at the Zimbabwe Iron and Steel Company (ZISCO) and designation of Kwekwe as a Special Economic Zone for steel production.
The pharmaceuticals subsector will be a key growth area during the Vision period, to ensure availability of drugs, save foreign currency and generate exports for Zimbabwe.
Measures will be put in place to support the subsector.
To be continued next Thursday
Online Reporter