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Business Reporter
Zimbabwe has witnessed a massive rebound in industrial growth over the past few years due to several measures adopted and implemented by the Second Republic.
A report on the growth of the industry under the Second Republic presented by Dr Sekai Nzenza, Industry, and Commerce Minister to Cabinet on Tuesday, shows the country has made progress in reviving industry and setting it on a growth path.
The report has noted the growth trajectory was driven by the Second Republic’s “people’s centered approach” to boost the production of manufactured goods, productivity and create quality jobs in line with the vision to grow the country into an Upper Middle-Income society by 2030 and the thrust of leaving “no one, no place behind.”
Improving ease of doing business and making access to foreign currency to manufacturers, export development, broad-based economic empowerment initiatives, rural industrialisation, research and innovation and linkages with Small to Medium Enterprises, were some of the strategies that helped propel the industry.
While the manufacturing industry used to be among the leading sector in the economy, the unconducive environment, which prevailed before the coming of the Second Republic, was dominated by severe economic instability. Furthermore, the high cost of doing business, foreign currency shortages, and limited foreign direct investment, saw the country experiencing factory closures, job losses, and de-industrialisation.
“The ZANU PF government has adopted a ‘Zimbabwe is Open for Business’ mantra, which calls for investors’ participation across the manufacturing divide,” reads part of the report.
“Since 2018, Government has witnessed massive industrial retooling and upgrading and expansion (of) manufacturing plants. The Party’s aspirations to re-industrialise Zimbabwe are largely influenced by its deliberate strategies to develop the manufacturing sector through private lead approach.”
According to the report, the proportion of the valued added products in the economy increased from 15,7 percent in 2018 to 18,4 percent in 2021. Exports grew to US$366 million last year from US$324 million in 2021. Capacity utilisation expanded to 66 percent in 2022 from 47 percent in 2020. The local products occupying the retail space increased to 84 percent in 2022 from 40 percent in 2017.
In terms of innovation and research, there are new products being manufactured by local firms including pharmaceuticals, animal healthcare and water-treating chemicals.
There were also investments worth several million in US dollars in various sub-sectors such as food, oil processing, beverages, bread, grain milling and dairy processing.
Some of the projects include a US$20 million cooking oil plant in Mahusekwa, which has since been commissioned by President Mnangagwa and a multi-oil seed crushing facility by Agri Value Chain in Chegutu, Mashonaland West Province. AVC is also investing US$20 million to revive David Whitehead. Bakers Inn has injected US$30 million in new production lines in Bulawayo while Olivine has invested US$16 million in a new margarine plant and the extension of the bakery fat plant.
Willowton Industries is set to commission a US$5 million margarine plant in Mutare. Lesaffre, the country’s sole producer of yeast has invested US$14 million in plant upgrades.
Under the cement sub-sector, Khaya Cement, formerly Larfage has invested US$25 million under the Second Republic. Dinson Iron and Steel Company is investing US$1 billion in setting up Africa’s largest steel plant in the Midlands while progress has been made on reviving the Zimbabwe Iron and Steel Company (Zisco).
Mealie Brand, a unit of Zimplow invested US$65 million under the Second Republic.
The company is into the production of diversified agricultural mechanisation products.
Itrachem, the supplier of explosives and accessories to the mining sector invested US$7 million.
In the fertiliser sector, ZimPhos injected US$1,1 million into a fertiliser blending plant while Dorowa Mineral, which produces phosphates injected US$4 million, and Sable Chemicals, the supplier of AN is investing about US$11 million in plant upgrade.
In 2020, the Government approved the Five Year Fertiliser Import Substitution Roadmap, currently under implementation to ensure increased production of crop nutrients.
Shoemaker, Bata invested nearly US$6 million in new plant and machinery. The country is looking to ramp up the sector’s capacity utilisation to 80 percent, from 45 percent by 2030.
Under the commerce sector, notable developments were the US$20 million Highland Park Shopping Mall. Since 2020 the pharmaceutical sub-sector recorded an increase in capacity utilisation to 45 percent from 25 percent, according to the report.
The outbreak of Covid-19 transformed the landscape of the industry, with old and new companies seizing the opportunity to start and expand businesses. Of note is a US$3 million investment by Cospharm Phamacetical involved in the production of packed tablets, capsules, oral liquids, external liquids, and galenical and complementary drugs.
The report said the Government would continue to accelerate the establishment of value-addition and beneficiation facilities in provinces and marginalised areas.
“The Zanu-PF ruling party fully recognises that the majority of the population in Zimbabwe is domiciled in rural areas. Some of the areas have been marginalised for too long.
“There is a deliberate thrust to develop factories in every district under the One District One Factory Concept in Zimbabwe in line with Zimbabwe National Industrial Policy.”
Online Reporter