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Zimbabwe maintains 6% economic growth target
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Finance, Economic Development and Investment Minister Professor Mthuli Ncube has reaffirmed Zimbabwe's 6% economic growth projection for 2024, despite the country facing late rains this agricultural season.
Speaking during a tour of Glytime Foods' new food processing facility at Sunway City, Minister Ncube expressed optimism about the economy's resilience, noting that recent rains have improved prospects for a strong agricultural harvest.
"If the weather patterns continue on this trajectory, we should be able to achieve or get close to achieving a 6% target rate of growth this year, which would mark a recovery following last year's drought," said Minister Ncube. "We are very bullish about the economy."
He emphasized that the growth rate hinges on consistent rainfall, with a full assessment of agricultural output expected in four months. Agriculture, which is pivotal to Zimbabwe's economy, suffered a significant blow last year due to an El Niño-induced drought, resulting in only 2% economic growth.
The severe drought, the worst in 43 years, highlighted the sector's vulnerability. However, agriculture remains critical to Zimbabwe's economy, forming the backbone of value chains that drive manufacturing and other sectors.
To bolster economic growth, the Reserve Bank of Zimbabwe (RBZ) recently launched the Targeted Finance Facility (TFF), which will release additional liquidity into productive sectors. Minister Ncube expressed confidence that the initiative will support the country's ambitious growth targets.
As part of efforts to promote industrial growth, Minister Ncube announced a US$1 million investment in Glytime Foods through the National Venture Capital Fund. The investment will support the company's expansion and enhance its production capabilities.
"We have seen them grow over the last four years from strength to strength," said Minister Ncube. "Now they are in that expansion phase, and we as Government are proud to support such innovative ventures."
Glytime Foods, led by founder and CEO Lesley Marange, has invested US$4 million in land, buildings, and equipment for its new facility. Located in the Sunway City Special Economic Zone (SEZ), the plant boasts a production capacity 24 times greater than its current facility and can process up to 1,500 kilograms of GMO-free, low-glycemic index, sugar-free, and cholesterol-free food products per hour.
Mr. Marange highlighted the company's commitment to leveraging local resources, working with 24 districts across Zimbabwe to source raw materials such as small grains, honey, baobab, and tamarind. Glytime Foods currently exports to Zambia, Botswana, Mozambique, and Malawi, with plans to expand its regional footprint further.
The company's expansion is expected to create 180 jobs, up from its current workforce of 54 at its Workington industrial plant.
"This project aligns with heritage-based initiatives, showcasing how local value chains can yield commercially viable products," said Mr. Marange.
As Zimbabwe navigates economic recovery, initiatives like Glytime Foods' expansion and government-led support are key to achieving sustainable growth and diversifying the economy.
Speaking during a tour of Glytime Foods' new food processing facility at Sunway City, Minister Ncube expressed optimism about the economy's resilience, noting that recent rains have improved prospects for a strong agricultural harvest.
"If the weather patterns continue on this trajectory, we should be able to achieve or get close to achieving a 6% target rate of growth this year, which would mark a recovery following last year's drought," said Minister Ncube. "We are very bullish about the economy."
He emphasized that the growth rate hinges on consistent rainfall, with a full assessment of agricultural output expected in four months. Agriculture, which is pivotal to Zimbabwe's economy, suffered a significant blow last year due to an El Niño-induced drought, resulting in only 2% economic growth.
The severe drought, the worst in 43 years, highlighted the sector's vulnerability. However, agriculture remains critical to Zimbabwe's economy, forming the backbone of value chains that drive manufacturing and other sectors.
To bolster economic growth, the Reserve Bank of Zimbabwe (RBZ) recently launched the Targeted Finance Facility (TFF), which will release additional liquidity into productive sectors. Minister Ncube expressed confidence that the initiative will support the country's ambitious growth targets.
"We have seen them grow over the last four years from strength to strength," said Minister Ncube. "Now they are in that expansion phase, and we as Government are proud to support such innovative ventures."
Glytime Foods, led by founder and CEO Lesley Marange, has invested US$4 million in land, buildings, and equipment for its new facility. Located in the Sunway City Special Economic Zone (SEZ), the plant boasts a production capacity 24 times greater than its current facility and can process up to 1,500 kilograms of GMO-free, low-glycemic index, sugar-free, and cholesterol-free food products per hour.
Mr. Marange highlighted the company's commitment to leveraging local resources, working with 24 districts across Zimbabwe to source raw materials such as small grains, honey, baobab, and tamarind. Glytime Foods currently exports to Zambia, Botswana, Mozambique, and Malawi, with plans to expand its regional footprint further.
The company's expansion is expected to create 180 jobs, up from its current workforce of 54 at its Workington industrial plant.
"This project aligns with heritage-based initiatives, showcasing how local value chains can yield commercially viable products," said Mr. Marange.
As Zimbabwe navigates economic recovery, initiatives like Glytime Foods' expansion and government-led support are key to achieving sustainable growth and diversifying the economy.
Source - the herald
