Government is drafting a new policy, which is set to revive the industrial and manufacturing sectors, an official has said.
BY TATIRA ZWINOIRA
The Industrial Development Policy (IDP) will run from 2017 to 2021, Kelvin Mutede, senior economist in the Ministry of Industry and Commerce, told delegates at a FBC Bank SME workshop on Tuesday.
Speaking on the presentation of the IDP (2017-2021), Mutede said the IDP provides guidelines for a new impetus for industrialisation in Zimbabwe.
“The Industrial Development Policy itself envisages transforming Zimbabwe from a producer of primary goods into a producer of processed value-added goods for both the domestic and export market through the promotion of viable industrial and commercial sectors,” he said.
The overall objective for the government under the IDP (2017-2021) will be to restore the manufacturing sector’s contribution to gross domestic product doubling to 30% and its contribution to exports increased to 50% from 26%.
It will be successor to the IDP (2012-2016), which targets an average gross domestic product growth of 7%.
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Mutede said the ministry would seek the establishment of a dedicated financial mechanism primarily dedicated to financing medium and long-term recapitalisation of industry.
“The mission is to create a vibrant, self-sustaining and competitive economy through promotion of viable industrial and commercial sectors as well as domestic and international trade,” Mutede said.
The key principles of the IDP are plant, equipment and skills audit, import substitution, value-addition or beneficiation, technology transfer and research and development, and exports of value-added products.
He said government would strengthen existing institutions such as Scientific and Industrial Research and Development Centre, Standards Association of Zimbabwe, ZimTrade, Competition and the Competition and Tariffs Commission, Consumer Council of Zimbabwe and national competitiveness. This will be done in an effort to co-ordinate the crucial role of modernising industry’s plant and equipment and to improve on its systems and quality of products in line with international best practice, he said.
Some of the strategies to be used will also include the provision of funds to Distressed Strategic Companies, review of import tariffs on the customs duty and value-added tax on industrial raw materials and packaging, and formulation of a sound National Trade Policy to support the IDP.
The Ministry on Industry and Commerce will also take Spatial Development Initiatives to unlock latent economic potential in specific geographical areas and facilitate the Special Economic Zones in line with the Mid-Year Fiscal Policy Review under the IDP.
The formalisation of the new IDP for the period 2017-2021 will be signed and completed soon.
