daniel chigunwe
Michael Tome
Business Reporter
GOVERNMENT will continue crafting policies that will facilitate the growth of export-oriented firms in a bid to boost the country’s foreign receipts
Last year, the Treasury disbursed a US$22, 5 million revolving facility for retooling distressed companies in various sub-sectors of the manufacturing sector.
The fertilizer sector was allotted US$7,5 million while the leather, cotton, and pharmaceuticals sectors were allocated US$5 million each.
The revolving fund is targeting sectors that have a huge multiplier effect on the economy.
Widening Zimbabwe’s exports is in line with the National Export Strategy (NES) whose main thrust is to increase total exports by at least 10 percent annually to US$14 billion by 2030.
Addressing captains of industry at a stakeholder interface breakfast meeting on Tuesday, Minister of Industry and Commerce Dr Sithembiso Nyoni said the Government would come up with policies to facilitate the re-industrialisation drive to create decent jobs and boost exports.
“My Ministry in collaboration with other relevant arms of Government such as ZimTrade will continue making initiatives to promote export-oriented industries and diversify export markets, including trade agreements, market access facilitation, and export promotion programmes.
“Zimbabwe is a member of regional and international economic groupings including SADC, COMESA, the African Continental Free Trade Area (AfCFTA), and the World Trade Organisation,” said Minister Nyoni.
Speaking at the same event, Buy Zimbabwe General Manager, Mr Alois Burutsa the Government needed to address challenges limiting the growth of the industry.
He said the high cost of production was making the local products more expensive and rendering them uncompetitive compared to the regional range.
“We have AfCFTA that is coming on stream and Zimbabwe (is) not ready; we need to move with speed.
“The issue of pricing is of concern; fertiliser, cement are out of hand. One of our members was telling us they will soon be importing tomatoes because of ridiculous local prices.
“With such a scenario where Zambian and South African companies are more competitive, our industry is not ready. Our manufacturing is just not doing well,” said Mr Burutsa.
Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza said the focus should be on competitiveness in light of the Africa Continental Free Trade Area (AfCFTA), which Zimbabwe is a signatory.
“AfCFTA is on our doorstep (and) we need to be ready for it. The regulatory environment, ease of doing business, and cost of regulation for industry and business in general should be of priority.
“Our study shows that overheads are rising, the cost of just complying with regulation is 18, 8 percent of the total overhead costs.
“It is a huge number to just comply with regulation. We are looking for an enabling environment so that business can grow,” said Mr Matsheza.
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