Some in­dus­tries no longer rel­e­vant: Min­is­ter

Chronicle (Zimbabwe) - - Business Chronicle -

IN­DUS­TRY and Com­merce Min­is­ter Mike Bimha says al­though Zim­babwe ur­gently needs to see a re­vival of its in­dus­tries, some of them are no longer rel­e­vant in the con­tem­po­rary age.

In June this year, the Gov­ern­ment gazetted Statu­tory In­stru­ment (SI) 64 of 2016, which re­moved some goods that are lo­cally avail­able from Open Gen­eral Im­port Li­cence ex­emp­tion.

The over­all ob­jec­tive is to sup­port the lo­cal frag­ile in­dus­try from un­fair com­pe­ti­tion, that way, fa­cil­i­tat­ing em­ploy­ment cre­ation and GDP growth.

But Min­is­ter Bimha has said some in­dus­tries can no longer be saved.

“We’ve seen a dein­dus­tri­al­i­sa­tion trend over time from the time of ESAP (Eco­nomic Struc­tural Ad­just­ment Pro­gramme) but now Zim­babwe needs to walk on a path of rein­dus­tri­al­i­sa­tion.

“Rein­dus­tri­al­i­sa­tion will also mean resuscitation of in­dus­tries and com­ing on board of new com­pa­nies,” said the Min­is­ter while ad­dress­ing the In­sti­tute of Char­tered Sec­re­taries in Zim­babwe’s an­nual con­fer­ence re­cently.

“You can­not re­sus­ci­tate a com­pany that is dead. Some of them need to re­main dead, be­cause they’re no longer ap­pro­pri­ate. So we’ve to be se­lec­tive and see which ones we re­sus­ci­tate and which ones we say rest in peace.

“That’s an area which is not just for Gov­ern­ment, but ev­ery­one needs to de­cide, which of those in­dus­tries we want to see and which ones we should do noth­ing about,” he said.

Ac­cord­ing to the Con­fed­er­a­tion of Zim­babwe In­dus­tries (CZI)’s last Man­u­fac­tur­ing Sec­tor Sur­vey, the lo­cal pro­duc­tive sec­tor was op­er­at­ing at just over 30 per­cent of in­stalled ca­pac­ity.

But some in­dus­tries are per­form­ing bet­ter than oth­ers.

Pre­sent­ing the Mid-term Fis­cal Pol­icy, Fi­nance and Eco­nomic Devel­op­ment Min­is­ter Pa­trick Chi­na­masa said some in­dus­tries were at least op­er­at­ing above av­er­age.

“The man­u­fac­tur­ing sec­tor is pro­jected to grow by 0,2 per­cent on ac­count of re­silient ac­tiv­i­ties in food­stuffs, drinks, to­bacco and bev­er­ages, tex­tiles and gin­ning, cloth­ing and footwear, as well as non-metal­lic min­eral prod­ucts sub­sec­tors.

‘‘Ca­pac­ity util­i­sa­tion in the above sub­sec­tors, which are do­ing rel­a­tively bet­ter, is above 50 per­cent, de­spite the dif­fi­cult eco­nomic en­vi­ron­ment,” he said.

“How­ever, ac­tiv­ity in the sub­sec­tors such as tex­tiles and gin­ning, wood and fur­ni­ture, metal and metal, fer­tiliser, chem­i­cals, phar­ma­ceu­ti­cals prod­ucts and trans­port and equip­ment re­main sub­dued, with ca­pac­ity util­i­sa­tion lev­els of around 30 per­cent.”

Mean­while, the Gov­ern­ment has con­firmed that ef­forts to pro­vide in­ter­nal fund­ing for the re­vival of lo­cal in­dus­try are pro­gress­ing with dis­cus­sions on fi­nal­is­ing the sec­ond phase of the Dis­tressed and Marginalised Ar­eas Fund (Di­maf) and the Zim­babwe Eco­nomic and Trade Re­vival Fa­cil­ity (ZETREF) cur­rently on­go­ing. — BH24

Women follow pro­ceed­ings dur­ing the Women’s Devel­op­ment Di­a­logue break­fast meet­ing at a Bu­l­awayo ho­tel yes­ter­day

Min­is­ter Mike Bimha

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