ECONOMIC Planning and Investment Promotion secretary Desire Sibanda yesterday said Zimbabwe’s future economic growth will be anchored on industrialisation despite the dire state of the country’s manufacturing sector.
Business Reporter
Officially opening the Adhoc-Expert Group Meeting, Sibanda said the meeting organised by the United Nations Economic Commission for Africa (ECA) under the theme Industrialisation for Economic Transformation and Sustainable Development in Southern Africa: Addressing the Gaps, could not have come at a better time when the country was working to accelerate the drive towards industrialisation and economic transformation.
“Zimbabwe recently launched the Industrial Development Policy, which envisions a vibrant industrial and manufacturing base to anchor national economic transformation,” he said.
The policy came after the country was sliding fast towards de- industrialisation, with expects saying any hopes of driving the economy were now anchored on the mining sector which accounts for over 50% of total exports.
Sibanda said the government was committed to scientific research, technology and innovation in industrialisation, as reflected in the industrial policy which outlines strategies to promote advances in science and technology.
He said the policy focuses on capacitating industry for enhanced value-addition to mineral and non-mineral commodities as it seeks to translate the comparative advantage in resource endowments into a competitive industrial base.
“My government strongly believes that a strong manufacturing sector will harness and optimise the benefits of industrial clusters through stronger forward and backward linkages and facilitate export diversification,” he said.
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Capacity utilisation in the manufacturing sector last year dropped to 44% from 57% in 2011 due to a plethora of challenges, among them undercapitalisation, competition and high utility charges.
ECA, Southern Africa regional office director Beatrice Kiraso, said the sub-region must upgrade and modernise its industrial base to grow and diversify economies which have largely depended on exportation of primary commodities.
“The sub-region has registered markedly improved growth in recent years. However, many member States’ economies are still characterised by underdeveloped and narrow-base production structures as well as primary commodity-dependent growth,” she said.
Kiraso added that the improvement in productive capacities will facilitate diversification of domestic economic activities and expand the range of exports.
Industrialisation and value-addition by local industries will contribute to deepening regional economic integration through enhancing intra-regional trade in Southern Africa sub-region, she added.
Kiraso noted that although Southern Africa had a huge market, primary commodity dependence had hindered countries from reaping the benefits of regional integration.
She cited intra-Sadc trade volumes which stand at less than 10% of total foreign trade by the region, notwithstanding the existence of enabling legislation at a regional level.
