‘Value chain approach vital in addressing price hikes’

‘Value chain approach vital in addressing price hikes’

Source: ‘Value chain approach vital in addressing price hikes’ | Herald (Business)

Dr Bimha

Dr Bimha

Business Reporter
Government should implement recommendations of the Confederation of Zimbabwe Industries on the value chain approach as a way to develop the economy and tackle price hikes that have gripped the country since November last year as it identifies gaps in the different sectors, an expert said on Monday. A value chain is the process or a set of activities that lead to the production of a final product.

Studies carried out in various sectors of the economy and regionally show that, for instance, primary producers could realise more for their raw materials if they follow through the value chain and sell value added products.

In an interview, Confederation of Zimbabwe Retailers president Denford Mutashu said the price hikes which began in November last year could be tackled through the value chain approach.

“The value chain approach which was recommended to the Ministry of Industry and Commerce and Enterprise Development is one of the solutions as it identifies the gaps,” he said.

The CZI in March 2016 produced a booklet titled: “Value Chains Mapping – Mapping of Value Chains in Zimbabwe for Economic Development”, which it expected to assist policy makers in crafting policies that were relevant to every segment of the economy.

The booklet, which was handed over to then Industry and Commerce Minister Mike Bimha, identified opportunities and gaps in 18 value chains as the private sector sought to drive the industrialisation strategy. Presenting the booklet to Minister Bimha, then CZI president Busisa Moyo said the value chains study was in line with Africa’s vision to industrialise

and in line with the country’s Zimbabwe Agenda for Sustainable Socio-Economic Transformation, the Ten-Point Plan and the Sustainable Development Goals. “These value chains are only the beginning,” he said.

“It is not an exhaustive list but it is the first edition in terms of value chains that we have identified,” said Mr Moyo.

“We believe that if we are to industrialise and develop as a nation we need to take a value chain or cluster approach and this book summarises 18 value chains that we have identified. The essence or the underpinning principle of these value chains is that some of our value chains are broken. There are missing pieces to the value chains,” he said.

The value chains that the CZI identified include the asbestos-to-roofing/piping-to-construction materials; diamond-to-jewellery-to-ornament; gold-to-jewellery-ornament; chrome ore-to-chromium-to-fabricated steel product; iron ore-to-billet-to-foundry-to-fabricated steel product; limestone-to-quarry-to-cement-to-construction; coal bed methane-to-gas-to-plastics and allied value chain.

Other value chains include cotton-to-clothing; soya-to-white-meats (incorporating stock-feeds for the beef industry); tobacco-to-cigarette; maize-to-maize meal (incorporating stock-feeds for the beef industry); beef-to-milk-to-leather; horticulture production-to-can/packet/bottle; regional – assembly-finishing value chains (including automotives, plastics, paper and ICT) and pharmaceuticals-pharmacy-hospital-patient value chain, among others.