Re-engagement sees 112.5 % increase in local production 

Re-engagement sees 112.5 % increase in local production

 

Brian Rungano Temba

 

President Mnangagwa Administration’s efforts to revitalise the economy were met with hurdles of sabotage through economic sanctions and local synthetic inflation. Regardless of these obstacles, tangible results were reaped with the initiatives having netted in enough investments to see a boost in volumes of locally produced goods in retail shops increased from 40 percent in 2017 to 85 percent in 2022.

 

This was confirmed by the Minister of Information Publicity and Broadcasting Services Monica Mutsvangwa while speaking at the Post Cabinet Briefing last night.

 

Zimbabwe’s industrial sector remains highly diversified, comprising 94 sub-sectors, producing about 6 000 products, while the commerce sector currently accounts for 60% of the industry contribution to the Gross Domestic Product.

 

Min. Mutsvangwa said the sector is also highly integrated with the rest of the economy, and Government’s concerted measures to support industry, including macroeconomic stability, have resulted in positive performance being recorded in manufacturing.

 

“The contribution of the value of the manufacturing sector to the country’s total value-added products increased from 15.7% in 2019 to 18.4% in 2021 and is ranked third after agriculture and mining. Manufactured exports have increased in value from US$324 million in 2021 to US$366 million in 2022, with most exported products being food, manufactured tobacco, textiles, and packaging. Capacity utilisation increased from 47% in 2020 to 66% in 2022. The volumes of locally produced goods in retail shops increased from 40% in 2017 to 85% in 2022.”

 

“In terms of product research, innovation, development and commercialization, new commodities are now being locally produced on a commercial basis, such as tick grease for cattle (Contratik); grain protectants (Chamboko and Chikwapuro); cough syrup; water treatment chemicals; COVID-19 personal protective equipment (sanitisers, surgical masks, swabs, aprons, and Tyvek suits); oxygen; and agricultural lime,” she added.

 

 

“The manufacturing sector’s strong performance has also been buoyed by significant investments due to the conducive environment for sustainable private-sector operations created by the Second Republic, which it continues to enhance under the “Zimbabwe is Open for Business” mantra. Some significant investments are as follows:

 

“Varun Beaverages plant and equipment expansion in Harare, Delta Corporation has invested US$600 million in new manufacturing plant and equipment, Bakers Inn equipment expansion in Bulawayo.

 

“Kefalos dairy processing plant commissioned in Mhondoro, the Mega Market milling plant commissioned in Mutare,US$5.9 million investment in plant and machinery by Bata Shoe Company in the Midlands Province, US$11 million investment in plant upgrade by Sable Chemicals in Kwekwe.

 

 

“Pretoria Portland Cement’s Colleen Bawn plant in Matabeleland South Province has a clinker production capacity of 650 metric tonnes per annum, which translates to one million tonnes of cement per annum,” added Sen Mutsvangwa.

 

Furthermore, the following strategies like Tax rebates, Granting of Special Economic Zones status, introducing the domestic currency, support to the plastic industry; and Provision of land with title deeds to businesses domiciled in rural areas; and the Industrial Development Corporation of Zimbabwe (IDCZ) working closely with Innovation Hubs and Industrial Parks to commercialise value chains in the national interest has benefitted industry.

 

Min Mutsvangwa added that the strong performance in the industry and commerce sector demonstrates that the Second Republic led by His Excellency the President, Cde E.D. Mnangagwa, is walking its talk in industrializing and modernizing the economy as well as economic growth.