Source: Govt targets 70% capacity utilisation for 2023 –Newsday Zimbabwe
The Industry and Commerce ministry is targeting to achieve capacity utilisation of 70% and a 2,5% manufacturing growth rate this year through close stakeholder collaboration, a ministry official has said.
Statistics show that, despite global shocks caused by the COVID-19 pandemic and the war in Ukraine, the country managed to increase capacity utilisation from 56% in 2021 to 66% in 2022.
Industry and Commerce permanent secretary Mavis Sibanda told delegates at the Value Chains Review Workshop held in Harare recently that government will provide necessary support systems to ensure the domestication of value chains.
“Shelf occupancy for locally produced products in retail shops increased from 70% in 2021 to about 80% in 2022. Going forward in 2023, we are targeting capacity utilisation of 70% and a manufacturing growth rate of 2,5%,” she said “This calls for continued close collaboration among stakeholders to achieve these results and the government as usual will provide the necessary support systems to ensure the domestication of value chains for increased value addition and beneficiation.”
Sibanda said the ministry was in the process of reviewing the Zimbabwe Industrial Development Policy which will be expiring at the end of this year, adding that continued participation in the process is key in coming up with strategies and interventions that enhance the transformative agenda.
“With regards to the Local Content Strategy, we are currently working on developing local content thresholds for the pharmaceutical, fertiliser and packaging sectors. The process will ensure the localisation of some parts of value chains and should be able to benefit more through the multiplier effect. Let me take this opportunity to applaud the players who were involved in the process,” Sibanda said.
“The government will continue to render its support towards strengthening value chains through the import management programme. The programme is aiming at supporting local industries to build production capacity and be more competitive in readiness to participate in regional, continental and global value chains.”
Government, through the International Monetary Fund Special Drawing Rights (SDR) facility, has availed funding under the Retooling for New Equipment and Replacement for Value Chain Revolving Fund, which is currently being extended to cotton, leather, pharmaceutical, fertiliser and other agro-processing value chains.
These funds are aimed at supporting retooling within selected value chains to increase production for both local and export markets.
Sibanda also indicated that for those outside the SDR facility, government would provide concessionary funding support through the Industrial Development Fund under the Industrial Development Corporation of Zimbabwe.
Govt targets 70% capacity utilisation for 2023
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