Business / Economy
Mugabe to launch Zimbabwe's industrial, trade policies
28 Mar 2012 at 12:46hrs | Views
PRESIDENT Robert Mugabe is expected to officially launch the country's Industrial Development Policy and the National Trade Policy in Harare on Thursday.
This was said by the Minister of Industry and Commerce Professor Welshman Ncube yesterday.
"The official launch will be done by His Excellency the President on Thursday in Harare, while the Prime Minister is also expected to make remarks at the event," he said.
Both policies will run from this year to 2016.
The main aim of the IDP is to transform Zimbabwe from a producer of primary goods into a producer of processed value-added goods for both the domestic and export markets, while the NTP is aimed at having the trade function as the engine for sustainable economic growth and development of the country.
Professor Ncube said funding of the programmes outlined in the policy documents will be sought from both internal and external sources.
"Locally, we do not have adequate resources to fund the programmes hence there is a definite need to engage the external market in raising the required funding," he said.
He also said US$30 million of the US$100 million allocated to the country under the SDR will be used to fund these programmes.
In addition, Professor Ncube indicated that, with regards to the policies, the Government is planning to convert a financial institution to focus on industrial funding, or at least capitalising the Industrial Development Corporation to play a funding role similar to that of the Industrial Development Corporation of South Africa.
The launch of the two policies follows approval of the respective policy documents by Cabinet at the end of last year.
Zimbabwe's industry has been suffering from a number of challenges especially those relating to antiquated machinery and unavailability of cash, which has constrained productive capacity.
Current average productive capacity stands at 57 percent, which is an improvement from the circa 30 percent that was recorded in 2009 prior the introduction of the multi-currency system.
It is anticipated that the policies will restore the manufacturing sector's contribution to Gross Domestic Product from the current 15 percent to 30 percent, and the sector's contribution to exports from 26 percent to 50 percent by 2016.
Under the IDP and NTP frameworks, a real GDP growth of 7 percent targeted for the period 2012 to 2016 in line with the Medium Term Plan.
Professor Ncube said the key principles of the IDP and the NTP include addressing the issues of policy uncertainty, carrying out of a plant and equipment and skills audit, import substitution, value addition, technology transfer and research and development and introduction of cluster initiatives.
However, the conventional case against industrial and trade policies rests on practical difficulties with its implementation.
Previously, Zimbabwe has shown a propensity to develop brilliant policies, however, with the major fall point being implementation.
In this regard, Professor Ncube said the two documents will each carry implementation matrices with set out timelines and funding requirements.
He also called for political will across all players to ensure effective implementation.
"However, there is need to note that closer co-operation between Government, business and labour is imperative.
Inclusivity involving tripartite participation in decision-making, goal setting and corresponding tripartite acceptance of responsibility is necessary for the successful implementation of the strategy," he said.
This was said by the Minister of Industry and Commerce Professor Welshman Ncube yesterday.
"The official launch will be done by His Excellency the President on Thursday in Harare, while the Prime Minister is also expected to make remarks at the event," he said.
Both policies will run from this year to 2016.
The main aim of the IDP is to transform Zimbabwe from a producer of primary goods into a producer of processed value-added goods for both the domestic and export markets, while the NTP is aimed at having the trade function as the engine for sustainable economic growth and development of the country.
Professor Ncube said funding of the programmes outlined in the policy documents will be sought from both internal and external sources.
"Locally, we do not have adequate resources to fund the programmes hence there is a definite need to engage the external market in raising the required funding," he said.
He also said US$30 million of the US$100 million allocated to the country under the SDR will be used to fund these programmes.
In addition, Professor Ncube indicated that, with regards to the policies, the Government is planning to convert a financial institution to focus on industrial funding, or at least capitalising the Industrial Development Corporation to play a funding role similar to that of the Industrial Development Corporation of South Africa.
The launch of the two policies follows approval of the respective policy documents by Cabinet at the end of last year.
Zimbabwe's industry has been suffering from a number of challenges especially those relating to antiquated machinery and unavailability of cash, which has constrained productive capacity.
Current average productive capacity stands at 57 percent, which is an improvement from the circa 30 percent that was recorded in 2009 prior the introduction of the multi-currency system.
It is anticipated that the policies will restore the manufacturing sector's contribution to Gross Domestic Product from the current 15 percent to 30 percent, and the sector's contribution to exports from 26 percent to 50 percent by 2016.
Under the IDP and NTP frameworks, a real GDP growth of 7 percent targeted for the period 2012 to 2016 in line with the Medium Term Plan.
Professor Ncube said the key principles of the IDP and the NTP include addressing the issues of policy uncertainty, carrying out of a plant and equipment and skills audit, import substitution, value addition, technology transfer and research and development and introduction of cluster initiatives.
However, the conventional case against industrial and trade policies rests on practical difficulties with its implementation.
Previously, Zimbabwe has shown a propensity to develop brilliant policies, however, with the major fall point being implementation.
In this regard, Professor Ncube said the two documents will each carry implementation matrices with set out timelines and funding requirements.
He also called for political will across all players to ensure effective implementation.
"However, there is need to note that closer co-operation between Government, business and labour is imperative.
Inclusivity involving tripartite participation in decision-making, goal setting and corresponding tripartite acceptance of responsibility is necessary for the successful implementation of the strategy," he said.
Source - news
