Little progress in value addition

MANICALAND has made little progress towards the value addition of agricultural and mineral products, with a lot of value being lost through the export of predominantly raw and semi-finished products.

Value addition entails conversion of primary commodities into intermediate or finished goods for maximum benefit of derived value.

Manicaland set a target to grow its Gross Domestic Product (GDP) by five percent this year, predicated on value addition and beneficiation of major agricultural produce and minerals, but little progress has been made so far despite its positive impact on employment creation and economic growth.

The province has a versatile economy producing more than 70 percent of the country’s diamonds, in addition to highly valuable agricultural commodities like macadamia nuts, tobacco, cotton lint, tea, coffee and timber, as well as dairy products, wildlife and poultry meat.

Secretary for Manicaland Provincial Affairs and Devolution, Mr Edgars Seenza said the province will increase production and value addition in all the sectors.

He also emphasized on the need to attract foreign direct investments, adding that beneficiation of minerals remain top on the province’s priority list.

“We are also focusing on value chains – we need to transform the value chains by ensuring that what we produce is value-added before leaving the province,” he said.

The Manica Post understands that the province is losing value through continued export of raw products.

In an interview on Wednesday, Reserve Bank of Zimbabwe Governor, Dr John Mangudya said understanding export market dynamics is very crucial.

“It is more profitable to export finished products than raw or semi-finished products, and you also have to appreciate export market dynamics because those buying our products have their own manufacturing plans.

“We also need to appreciate the essence of export diversification since you cannot force a commodity which is not on demand on the export market.,” said Dr Mangudya.