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VP Mnangagwa

Business Reporter—

VICE President Emmerson Mnangagwa says Government will not rest on its laurels after its import control measures helped industry to increase capacity, but will continue to explore ways to boost recovery of the sector.He said the manufacturing industry should take advantage of the reprieve provided through statutory instrument 64 of 2016 to retool, grow and become competitive, as the intervention will only last 3 to 5 years.

The Confederation of Zimbabwe Industries’ manufacturing capacity survey revealed that industrial capacity had increased from an average 34 percent to about 47 due to the positive impact of the import controls.

Delivering his key note address to officially open the inaugural Zimbabwe Business Expo in Harare yesterday Vice President Emmerson Mnangagwa said the restrictions were meant to revive local industry, preserve jobs and reduce the import bill to avoid making Zimbabwe a retail economy.

However, he said while the volume of imports was decreasing since SI 64 of 2016 was introduced in July, the Government was still addressing other issues negatively impacting on the viability of the manufacturing sector.

“One such intervention is the establishment of Special Economic Zones. You will recall that His Excellency President Mugabe recently appended his signature to the Special Economic Zones Act,” the VP said yesterday.

“Implementation of the programme is expected to attract increased foreign direct investment, which will contribute to increased capacity in industry. This will also bridge the funding gap as well as leverage the economy.”

Government has identified targeted industries and areas for SEZs with leather and textiles set for Bulawayo, petro chemicals in Lupane, tourism along the corridor from Victoria Falls to Gwayi and Kariba, technology hub at Sunway City (Harare) and diamond cutting in Harare and Mutare.

Other projects lined up for SEZs include agricultural processing (fruits) in the eastern highlands and Mazowe, health and business process outsourcing in Harare, iron and steel manufacturing in Midlands and Bulawayo.

Vice President Mnangagwa said SI 64 of 2016 measures were not permanent. After all, there have been reports that South African businesses, which were hardest hit by the policy measure, were putting pressure on their Government to take retaliatory measures against Zimbabwe.

The Vice President said SI 64 of 2016 was part of a raft of measures the Government had initiated to help industry through fiscal reviews, import management on selected products, resource mobilisation and approval of investments through the indigenisation and empowerment law.

He said local companies had shown that they have capacity to produce products controlled through SI 64 of 2016 in sufficient quantities and products exhibited at the expo were evidence of the strides industry has made since the Government enacted the legislation to control imports.

“These measures (SI 64) give confidence to investors who are assured of sustainable investments through the management of imports.

“The development of value chains will also be accelerated, thereby opening up employment creation and further growth of the economy,” the VP said.

He pointed out that the 10 point plan announced by President Mugabe in August last year also buttresses value addition and beneficiation of the country’s agricultural and mining resources among other local products.