Source: Inclusive growth. . .Rural industrialisation crucial for Zimbabwe’s economic transformation – herald
Nqobile Bhebhe, Zimpapers Business Hub
THE Government has reiterated the need for a strong rural industrialisation strategy as a vital component for inclusive and sustainable development.
In a wide-ranging discussion with journalists at the Zimbabwe International Trade Fair (ZITF) closing Press briefing last week, Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu said that rural industrialisation was no longer an option but a strategic imperative aligned with President Mnangagwa’s vision for inclusive growth. He stressed the importance of co-ordinated efforts across all Government levels to achieve significant economic transformation in rural communities, urging all stakeholders to actively pursue President Mnangagwa’s vision for rural economic change.
This year during ZITF, an inaugural Rural Industrialisation Indaba was held under the theme: “Inclusive Growth, Industrial Roots: Unlocking Zimbabwe’s Rural Potential.”
President Mnangagwa has declared that his administration will drive rural industrialisation, which will see industrial activity being launched in rural areas based on factor endowments in each rural space. The objective of rural industrialisation is to stem rural-urban migration.
“President Mnangagwa has been consistently talking about rural industrialisation. This is, in itself, a directive to Government to take rural industrialisation seriously. It is the only way that, as a nation, we will be able to truly move with everyone. We know that the bulk of our population resides in rural areas, yet our youth aspire to migrate to urban centres because that’s where opportunities are. That is what the President wants us to change,” said Minister Ndlovu.
Minister Ndlovu said the shift required ministries of state, permanent secretaries, rural district councils, and local leadership to fully understand and internalise the national vision so they can develop concrete, location-specific strategies that unlock local economic potential.
“At the Rural Industrialisation Indaba, which was attended by all provinces because we believe that this is the discussion that should be further cascaded down by our ministers of state, our permanent secretaries of state, local authorities, and rural councils. We want them to understand the President’s vision and break it down again into actionable action that we can follow through.
“We presented the state of provincial economies and their contribution to GDP. It is worrying that over the last three years, most rural provinces have seen their contribution decline, while the metropolitan provinces of Harare and Bulawayo have increased, though marginally.
“Again, it is a cause for concern because where you have more people residing, we don’t seem to be doing very well.
And maybe it’s because we have not elevated this analysis to a level where they can see the numbers, to a level where they can introspect and look at their competitive advantage and say, let us focus on this and grow our economies, create employment there. In this country, it should not be a surprise in a few years to see people moving from urban areas to rural areas because we will have created quality jobs there,” said the minister.
Minister Ndlovu challenged rural local authorities to remove obstacles to investment and actively attract the private sector through investor-friendly policies.“I know a few local authorities who, by setting prohibitive prices for industrial stands, send a signal that says ‘don’t come’. We must change that. Let us incentivise the private sector to invest in these areas.”
Significantly, the Minister reminded stakeholders of an existing but underutilised Government incentive that any investor who sets up a manufacturing facility in a rural area automatically qualifies for Special Economic Zone (SEZ) status, a designation that comes with major tax and operational benefits.
“As a policy, announced by the Minister of Finance in 2019, anyone setting up a factory in a rural area automatically qualifies for Special Economic Zone (SEZ) status. But as I confirmed with the minister last year, there has not been a single application from anyone who wants to benefit. This shows that we have not taken full advantage of what the Government is offering to support rural industrialisation.”
The Government has already laid the preparatory groundwork for the transformation through, among many other things, establishing tertiary institutions, including vocational training centres in rural areas and intensifying the rural electrification programme. Rural industrialisation has been placed at the centre of Zimbabwe’s development agenda under the National Development Strategy 1 (NDS1), which seeks to enhance decentralised economic activity, value addition, and job creation across all provinces. The push towards rural industrialisation aligns with Vision 2030, through which Zimbabwe aims to attain upper-middle-income status. Anchoring economic development in rural areas is expected to reduce migration pressure on cities, address spatial inequality, and stimulate balanced provincial growth.
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