‘Govt ensuring quality products’

THE Ministry of Industry and Commerce has embarked on a number of initiatives to help boost industry and revive the economy. Our reporter Freeman Makopa (FM) caught up with Industry and Commerce minister Sekai Nzenza (SN, pictured) to discuss them and the outlook for this year among other issues. Here are the excerpts of the interview;

FM: The government has reviewed its intention to embark on massive and deliberate rehabilitation and reconstruction of industrial sites as a response to economic challenges, which have characterised the last decade. How do you plan to do that?

SN: The government in line with the NDS1 is implementing the industrialisation programme, through the Special Economic Zones (SEZs), that is, Sunway City in Harare with an estimate of 800 ha of land available but unserviced. Sunway City has successfully made available 200 ha of land to key investors in cement, food, furniture, and plastic recycling sectors within its SEZ in Harare.

FM: The Industrial Development Corporation of Zimbabwe (IDCZ) — Sunway City has also signed agreements with local partners to develop a dry port and a medical park in 2022. Will the company replicate this model in other cities and towns around the country?

SN: The ministry is capacitating companies in the value chains, that is, the Leather Value Chain to enhance the supply of leather, pharmaceutical, dairy, soya, fertiliser, and bus and truck. Some companies are rehabilitating their infrastructure at their factories in line with the retooling exercise.

The emergency business relief fund was initiated. Following the nationwide disturbances of January 14-16, 2019, Bulawayo province was one of the most affected. Seven buildings were identified as structurally damaged enough to be assisted in restoration. The reconstruction work has been completed for two shops — Mbhodhogo and Lamulani — that are now operational, and others are at various stages of completion. The retail sector has expanded with the opening up of up-to-date retail outlets.

In line with Devolution, His Excellency (President Emmerson Mnangagwa) commissioned the Kudzanayi Long Distance bus terminus on December 13, 2021. The same project is being implemented within Gweru. This will offer a linkage between small entrepreneurs and large enterprises in the supply of products needed in the SME sector which covers agricultural goods as well as manufactured goods.

FM: Industries have since complained about the delays in releasing foreign currency obtained from the auction system, have you taken that into consideration and what are your strategies?

SN: We appreciate the effort of other government stakeholders such as the Ministry of Finance and Economic Development as they engaged in clearing the backlog through the auction floors. A total of US$241 million was allocated from January 2021 to November 2021 through the Auction System towards support for the productive sectors of the economy.

With this allocation Industry and Commerce imported raw materials and equipment. This had an immediate impact on production as shelf occupants of locally produced products reached 65%-80%. The coming in of the African Continental Free Trade Area will give an advantage of a bigger market that will be supporting the industries to retool through supporting them in accessing fiscal incentives.

The ministry will continue with our robust engagement in ensuring that we timely assist in terms of policy interventions. Noting that foreign currency is scarce, the Ministry has come up with sectoral strategies that are promoting and encouraging industries to export more.

FM: It is believed that Zimbabwe’s vehicle manufacture has been struggling to stay afloat as the government, which is their biggest customer, has over the years shunned locally produced vehicles preferring imports instead. What is your response to this?

SN: The Ministry of Local Government and Public Works is working on several strategies to recapitalise Zimbabwe United Passenger Company (Zupco) and facilitate the procurement of buses for the company. In addition to importing complete buses, one of the strategies that was identified is to support the resuscitation of the local bus manufacturing companies by procuring locally manufactured buses.

The government has always been in support of the local industries through the purchase of locally produced vehicles. The local bus manufacturing companies were engaged by the ministry with a view of having them partnering external partners in assembling buses locally, and this project is in progress with AVM. The Amalgamated Bus Industries has also expressed interest in supplying buses to Zupco.

Willowvale Motor Industries (WMI) entered into a partnership with Chinese investors and produced motor vehicles under the BAIC brands which are currently being sold locally. Deven Engineering on the other hand is looking at assembling buses at the rate of 20 buses per month.

FM: You attended the Rwanda-Zimbabwe Trade and Investment Conference, what was the result of that conference, and have you managed to strike any deals from that visit?

SN: Indeed I was part of the high-ranking Zimbabwe ministerial delegation to the Rwanda-Zimbabwe Trade and Investment Conference held in Kigali on September 27-30, 2021. The delegation was led by the Minister of Foreign Affairs and International Trade Ambassador Fredrick Shava. This Conference gave us an invaluable opportunity to advance the government’s reengagement agenda with the international community.

Included in the Zimbabwe delegation was a contingent of at least 30 private sector companies that ZimTrade mobilised, as well as the Confederation of Zimbabwe Industries (CZI). Also included in the delegation was the Zimbabwe Investment and Development Agency (Zida) and jointly we were able to demonstrate what Zimbabwe offers in terms of both trade and investment. We showcased the various trade and investment opportunities, ranging from agro-processing, horticulture, manufacturing, ICT, tourism, and other service sectors.

Rwanda is a net importer of sugar, soya, maize, and wheat because of its poor geographical terrain. Zimbabwe is well poised to supply Rwanda with these agricultural products, given the country’s comparative advantage in agriculture, agro-processing and horticulture. This sector presents lowhanging fruits for our enhanced cooperation with Rwanda.

Notably, we have companies that have already started doing business with Rwanda, such as Cafca that recently started exporting electric cables to Rwanda. We also have a company called W2 Industries that has set up a facility in Rwanda, to supply laboratory equipment. Discussions are also underway, for another company, namely Teecherz Furniture, that intends to set up shop in Rwanda, to locally supply furniture to Rwanda. Yet another company, Zinyama, is exploring the export of beef products to Rwanda.

Part of the programme for the September visit to Rwanda included a guided visit and tour of the Kigali Special Economic Zone, which gave our private sector companies a first-hand appreciation of the Rwandan industry, thus gaining a deep insight into the prevailing gaps that they can fill.

The visit also gave the much-needed impetus into the Memorandum of Understanding on Economic, Trade, and Investment Cooperation that our two countries have been negotiating. We are now poised to conclude this and sign it at the earliest possible opportunity in the new year. This will further strengthen our economic cooperation with Rwanda, wherein our focus is on the private sector. This indeed is in line with the government’s thrust under the National Development Strategy 1, wherein the private sector takes centre stage as the vehicle that will deliver export-led economic growth for the country.

The MOU will provide our respective private sectors with the requisite framework to guide their business interactions and also give assurance that our governments are behind them and will help them as much as possible in all their endeavours.

FM: We understand that there was an MOU signed between CZI and Rwanda’s private sector federation, what are some of the contents of the MOU?

SN: This is a private sector cooperation agreement that seeks to operationalise joint venture partnerships between our two countries. It also seeks to enhance market access and promote investment. The Rwandans are very keen to tap into Zimbabwe’s advanced manufacturing sector capabilities. The MOU creates the framework for the establishment of and development of commercial and industrial ties between the members of the CZI and the PSF,

As a follow-up to this MOU, the Rwandans had planned to visit Zimbabwe and advance the provisions of this MOU. An advance delegation from Rwanda was already on the ground when the Covid-19 Omicron variant struck and disrupted flights. As a result, the whole mission had to be aborted and we are now just waiting for the next possible opportunity for our private sectors to advance their respective agendas. As a ministry, we are very pleased that the private sectors have signed this MOU, because it further buttresses the MOU that we are going to sign at the government level, whose focus is also on private sector cooperation.

FM: Do you have any plans to open closed industries and are there any new investors willing to invest in these industries?

SN: In that regard, recognising that this is a private sector-led economic growth, stakeholders are implementing the value chains programmes focussing on iron-steel which has shown resilience by operating at 50%. The other sectors are textiles, clothing and leather, metals and electricals, dairy, fertilisers, the motor industry and pharmaceuticals.

In this roadmap focus will be to offer support in reviving ailing companies, assisting strategic companies and ensuring that proper policy framework interventions are implemented. Zida has provided a list of companies that require investors both ailing and new. The investment authority is marketing those companies.

The 10 provincial offices have been mandated to assist in monitoring the operations of ailing companies and also assist in the identification of new companies that require government assistance.

FM: What plans do you have for 2022 in order to increase sector productivity in the country?

SN: In collaboration with the CZI, the Zimbabwe National Chamber of Commerce (ZNCC) and the CEO Africa Roundtable, we are tracking the capacity utilisation of local companies. The target of 61% capacity utilisation will be monitored in 2022 so that we surpass that target as we contribute to the attainment of Vision 2030.

Funds will be available to the IDCZ in 2022 to offer concessionary funding towards the promotion of import substitution and manufactured exports.

The US$8 billion Industrial and Commercial Sector Roadmap, will play a vital role to increase manufacturing sector value-added products, generating foreign currency, and employment creation. The private sector has projects which the ministry will be monitoring. Rural industrialisation within the 10 provinces will see us working with other stakeholders in ensuring that we have new companies and revival of strategic companies at the provincial level.

The local content strategy will be accelerated in conjunction with Buy Zimbabwe to ensure that quality products are produced. Buy Zimbabwe is working on a threshold of determining the local content thrust and publicising the concept in conjunction with the ministry. The Competition and Tariff Commission (CTC) will spearhead the mergers and tariff reviews to ensure manufacturing growth.

National Competitiveness Commission will continue to avail evidence-based benchmarking on competitiveness in the value chain for the manufacturing sector. On the other hand, the Consumer Protection Commission will be fully functional and champion consumer awareness programmes.