‘Industry revival top priority’ Time for Byo to reclaim lost glory: Modi
THE new Minister of Industry and Commerce, Nqobizitha Mangaliso Ndlovu, says the revival of industries will be a top priority during his tenure as the new political dispensation moves to transform the country’s economy and create jobs.
The youthful minister acknowledged that the demise of several industries in recent years has not only reduced manufacturing contribution to Gross Domestic Product but has crippled livelihoods as it resulted in loss of jobs.
He said Bulawayo, once the pride of the manufacturing sector in Zimbabwe, would be turned around, as well as other key industries countrywide. Minister Ndlovu said his ministry would also push to facilitate opening of new factories.
“Of course, Bulawayo is a priority for us to revive industries and restore the city to its status as the industrial hub of this country. Having done that we will also look at other industries operating and solve issues affecting them,” he said in an interview yesterday.
The Minister pledged to be seriously pre-occupied with making industry across the country viable through implementation of a “robust” industrialisation policy and removing investment bottlenecks.
On Monday, Minister Ndlovu told our Harare Bureau immediately after taking the oath of office at State House that transforming the living standards of citizens and INDUSTRY and Commerce Deputy Minister, Raj Modi, has said the new dispensation offers Bulawayo an opportunity to reclaim its former glory as the industrial hub of Zimbabwe.
Himself a prominent businessman, Modi, who won the Bulawayo South constituency seat in the recent election, said industry revival was his passion and pledged to work closely with Minister Nqobizitha Mangaliso Ndlovu to steer the re-industrialisation process in the city.
“I want to see Bulawayo getting back to its former glory, to how it was in the early 1980s. That is my mission now. I think I have the
providing them with decent jobs was critical towards attaining President Mnangagwa’s dream of a middle income economy by 2030.
“I cannot really disclose my plans for now but I am looking forward to having a robust industrialisation policy. I will review what’s there,” said Minister Ndlovu. right portfolio and I want to make sure that I work towards that and that is what I want to achieve,” said Modi.
He said the new Government would review some of its polices in a bid to attract investors and applauded President Mnangagwa for reviewing indigenisation laws.
“There is a need for some changes in some of the policies that we have. It’s good that the indigenisation policy has been reviewed. It was the main reason why many investors were not coming in,” said Modi.
“We will also take advantage of the Special Economic Zones and through that we are going to improve the economy by offering tax havens and allowing new companies to bring in new equipment duty free. We are going to offer them incentives so that they can come to
“I am looking forward to coming up with policies that are investor friendly, that are friendly to industry, (and) that are friendly to the economy because our focus is really that even in the manufacturing sector, we need to see capacity utilisation going upwards of 50 (percent), 60 (percent). “If you are north of 65 (percent) then you Bulawayo.”
He hoped the sweeping economic reforms would yield positive results in the short to medium term and facilitate growth across economic sectors in the country. Modi appealed to the media to support Government through responsible reporting, which is critical in national confidence building.
He said foreign investors were free to come to the country and engage Government in areas of interest. The same applies to local investors.
“Tell us what your challenges are and whatever it is we are ready to assist. Some people were sceptical about the election results but it is all over now, it’s very clear where we are going and I don’t think they have any doubt,” Modi said.
know that even those companies are profitable.”
The 2017 Confederation of Zimbabwe Industries (CZI) manufacturing sector survey indicated that capacity utilisation in the manufacturing sector was 45,1 percent compared to 47,4 percent in 2016. High costs of production, shortage of foreign currency, cash and raw materials top major constraints. Capacity utilisation peaked at 57,2 percent in 2011, before retreating to 44,2 percent in 2012, 39,6 percent in 2013 and 36,3 percent in 2014.
The decline continued in 2015 when it hit 34,3 percent on the back of unrestrained imports, among others. This prompted the promulgation of Statutory Instrument 64 of 2018, which sought to restrict the importation of products that can be produced locally. An industrialist and academic in his own right, Minister Ndlovu said Government would do everything in its power to address all bottlenecks hindering growth of industrial capacity. — @richardmuponde.