Cabinet approves Zimbabwe National Industrial Development Policy

By Tatenda Mujeyi

Cabinet has considered and approved the Zimbabwe National Industrial Development Policy (ZNIDP) as submitted by the Ministry of Industry and Commerce in Harare yesterday.

ZNIDP seeks revitalisation of the countries industry which has not met a positive growth trajectory due to economic challenges experienced since 2008.

The policy seeks to realise improved manufacturing value addition growth, contribution to national gross domestic savings, manufacturing sector annual growth and increased employment by the sector among other issues.

“The policy aims at attaining the following: a manufacturing sector annual growth rate of at least 2% per annum; a 30% contribution to the national gross domestic savings; a manufacturing value added growth of 16% per year; a merchandise export growth rate of 10% per year; and increased employment manufacturing sector to 20% by 2023,” Minister of Information, Publicity and Broadcasting Services Honourable Monica Mutsvangwa said.

The policy will be anchored on the establishment of support to the Industrial hub so as to realise the policies full potential.

“Attainment of the goals of the Industrial policy will be predicated on the following:-facilitation of financing for industrial development, embracing the fourth industrial revolution, fostering industrial competitiveness, providing of fiscal incentives for the manufacturing sector,” Senator Mutsvangwa said.

The policy will also incorporate industrialisation in other key government operations, cascading the potential benefits of Industrialisation to and from other sectors.

“Attainment of the goals of Industrial Policy will be predicted on the following:- mainstreaming the devolution agenda into industrialisation, establishment of industrial clusters and providing industrial skills training,” the Minister of Information, Publicity and Broadcasting Services said.

The policy will constitute a local content strategy that aims at safeguarding and improving utilisation of local resources through value addition and procurement.

“The Zimbabwe local content strategy, which is a component of the country’s Industrial policy aims to promote local value addition and linkages through the utilisation of domestic resources. The critical strategic actions will include preferential local procurement, capacitation of local suppliers and capacitating research and development institutions; establishment of plants for the transfer of technological know-how,” Senator Mutsvangwa said.

The local content strategy will steer government’s efforts to increase manufactured exports, capacity utilisation and increase local content levels in prioritised sectors.

“More specifically, the Zimbabwe local content strategy will help to :- increase local content in prioritised sectors from the current levels of approximately 25% to around 80% by 2023, increase capacity utilisation in prioritised sectors from the current levels of approximately 40% to around 75% by 2023 and increase manufactured exports in prioritised sectors by 5% per annum,”  Minister Mutsvangwa added.

The ZNIDP framework is set to steer Industrial regeneration following years of economic decline that led to the demise of the Zimbabwean Industry.