‘Zim capacity utilisation to reach 50pc by 2021’

CAPACITY utilisation levels in the manufacturing sector are expected to grow by at least 50 percent by year 2021 through implementing strategies in the Industrial Development Policy (IDP) 2017-2021, permanent secretary in the Ministry of Industry and Commerce Abigail Shonhiwa, has said.

The IDP, which is expected to be launched next year to replace the 2012- 2016 document, is expected to come up with a number of strategies to boost industrial development.

Mrs Shonhiwa said the 2017-2021 IDP is a document, which was developed using the last document, which did not fully meet its targeted projections.

“The manufacturing sector’s contribution is expected to increase to at least 18 percent by 2021, capacity utilisation is expected to increase to at least 50 percent and annual growth rate in the manufacturing sector is expected to grow to at least 1,5 percent during the lifespan of this policy.

“The policy is expected to facilitate development of the Zimbabwean industry to become a significant contributor to GDP, exports and Government revenues and create opportunities that attract both local and foreign direct investments in the different sectors of the economy,” she said.

Mrs Shonhiwa added that the industrial development policy framework is expected to revive and give a new lease of life to the Zimbabwean industry.

“You will note from the consultation’s presentation that this time around the policy targets have been made as realistic as possible given that the policy targets set in IDP 2012-2016 were to a large extent not met because most of them were too ambitious and had not been set within the context of the current economic environment.

“The goal this time is to set achievable targets taking into cognisance the prevailing environment,” she said.

The 2017-2021 IDP is still under consultation with towns such as Masvingo, Gweru and Bulawayo having been consulted while other consultations will be done in few weeks.

“The consultation held revealed that challenges currently being faced are similar across all sectors, which require solutions such innovative ways of getting affordable financing for targeted industries and synchronization of Government departments,” she said.

The policy is also expected to shield the local industry from unfair competition.

“The other goal is to continue pursuing some provisions within the current IDP whose implementation had begun but could not be implemented within its life span because of various factors.

Lead consultant on the IDP, Dr Gibson Chigumira said the policy is expected to improve the performance of the manufacturing sector which is currently below that of other sectors of the economy. — BH24