President proud of industry revival
PRESIDENT Mnangagwa yesterday expressed pride over the positive strides being registered by the country’s industries — taking advantage of the supportive Government policy reforms.
These have enhanced domestic output at a time when the global economy is being battered by the deadly Covid-19 pandemic.
The country’s manufacturing sector capacity utilisation is expected to clock about 61 percent by the end of this year from 54 percent registered in the second quarter, according to the Confederation of Zimbabwe Industries (CZI).
This is a milestone achievement considering that industry capacity closed 2020 at 47 percent, having risen from 36 percent in 2019.
The jump in productivity has been attributed to spiking demand, macro-economic stability, fiscal incentives and improved access to foreign currency through formal channels, among other policy enhancement measures.
Local businesses have responded positively by adopting the Local Content Strategy, aimed at building adequate domestic value chains and substituting imports, said President Mnangagwa who was in Bulawayo to officially open the Zimbabwe International Trade Fair (ZITF) 61st Edition.
While the prime trade expo was cancelled last year due to Covid-19, the President said he was impressed by the diverse and high quality of goods and services showcased at this year’s ZITF, especially considering the fact that local produce is now dominating both shelf space in retail outlets, as well as exhibition space.
“The private sector has made sure they perform extremely well so that we never again stop them from holding this exhibition.
The quality of products and arrangements, you wonder whether we are in Zimbabwe under sanctions,” said President Mnangagwa immediately after finishing his tour of stands at around 12pm.
“It’s really amazing that we’re achieving what we have achieved under the conditions we are in. I’m proud of our people in the private sector. You deserve due commendation.”
The revival of the private sector buttresses the ideals of the National Development Strategy (NDS1:2021-2025), a key building block towards realisation of Vision 2030.
Improved output also positioned Zimbabwe towards fulfilling the African Union Agenda 2063 and United Nations Sustainable Development Goals for improved livelihoods.
Later in his official opening speech, President Mnangagwa told delegates, who included Vice President Dr Constantino Chiwenga, Cabinet ministers, diplomats and industry executives, that Zimbabwe was making huge strides in transforming its economy.
With a Gross Domestic Product (GDP) growth projection of 7,8 percent this year, up from the initial 7,4 percent, the President said Zimbabwe has become “one of the fastest growing economies” in the region as well as one of the fastest movers on the World Bank Doing Business Index.
“These success milestones demonstrate the convergence of the positive national sentiments and unity of purpose between the private sector, Government and all the people of our great country,” he said.
“This also serves as a testimony of the confidence stakeholders have in Zimbabwe’s economy. The demonstration of solidarity and cooperation must be consolidated . . . The Second Republic will continue to guarantee a predictable policy environment where capital feels safe.”
President Mnangagwa said the on-going economic reform agenda was not only making Zimbabwe a favourable investment destination but has scored successes in containing inflation and realisation of budget surplus, as opposed to deficits as was the case in the past years.
He said the country’s foreign earnings, which have reached over US$5 billion so far this year, were evidence of an economy on a growth trajectory despite the adverse impact of the pandemic.
Going forward, the President said efforts to transform the economy from an exporter of predominantly primary products to higher nodes of high value industrial production would be intensified.
He directed Government agencies and departments to play their part and support the country’s industrial revolution. In doing so, Zimbabwe is alive to the digitalisation imperative, which demands that local industries adopt smarter, sustainable and digitally
BULAWAYO is gradually reclaiming its status as the country’s manufacturing hub with several industries exhibiting resilience amid improved output and focus on exports, Industry and Commerce Minister, Dr Sekai Nzenza said yesterday.
Coming from a background of closure of companies and loss of jobs experienced in the last two decades, the second largest city is now focused on revitalising its key industries, guided by the value chain model.
Speaking at the Zimbabwe International Trade Fair (ZITF) in Bulawayo, Dr Nzenza said the manufacturing sector as a whole was embracing technology and modernisation.
Aided by fiscal and monetary policy support interventions by the Government, these have assisted local industries to realise a repeat jump in capacity utilisation from 36 percent in 2019 to 47 percent in 2020 and 54 percent in the second quarter of 202, according to CZI.
With output continuing to increase and businesses realising profitability, industry experts now project the capacity utilisation would hit above 61 percent by year-end. Dr Nzenza said Bulawayo, in particular, was also making positive advances in transforming its industry and contributing significantly to the mainstream economy.
“Bulawayo was once a hub of industry. Right now, it’s on the road to growth as shown by the economic growth trajectory, which the Second Republic under the leadership of His Excellency ED Mnangagwa is making,” said Dr Nzenza.
“A few months ago, you had a tour of companies in Bulawayo and some of these were showcasing production in agro-processing. You were able to witness companies that are producing hardware, solar panels and stoves. It was quite clear that there is growing competition.”
◆