Zim mulls domestic processing industry

via Zim mulls domestic processing industry – DailyNews Live 23 August 2014 by Ndakaziva Majaka

HARARE – Government should put an end to exports of raw materials as a first step in establishing domestic processing industries that will dramatically boost revenue from sales of finished products, hike tax receipts and benefit Zimbabweans, President Robert Mugabe said yesterday.

Officially opening the 104th Agricultural Show in Harare, Mugabe said the rate at which the country was exporting raw materials was unsustainable.

“We need to pay attention to and prioritise value addition,” he said.

“Put simply, we desperately need to industrialise, that is, have factories to add value to the things we produce here in Zimbabwe.

“Agriculture is our main focus. We cannot remain a country of predominantly raw material exportation because this is not sustainable now or in the long term.”

The impoverished southern African  country is one of the few in the world still allowing unprocessed goods to be exported, depriving itself of a chance to build up a processing industry that can add value to its vast natural resources.

Mugabe told the almost empty Andy Miller Hall that national food security was a priority for Zimbabwe under the economic blueprint, Zimbabwe Agenda for Sustainable Socioeconomic Transformation (ZimAsset).

According to a report compiled by the Bookings Institute, a private nonprofit organisation devoted to independent research and innovative policy solutions, Zimbabwe’s governance methods repelled Foreign Direct Investment.

“After using world governance indicators which cover six dimensions of governance: voice accountability, rule of law, government effectiveness, political stability, regulatory quality, and control of corruption, Zimbabwe and the Democratic Republic of the Congo (DRC) are at the bottom with a respective score of -1.35 and -1.74, thereby making them unattractive investment destinations,” the report said.

COMMENTS

WORDPRESS: 10
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    Mugabe always puts the cart before the horse. The man has no concept of how an economy functions.

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    Is Mugabe sane? or utterly delusional?
    In 1980, everything on our shop shelves was locally produced.
    Now nothing is.
    Who was the national leader during this entire period?
    Who lead us into de-industrialization in the first place?
    Now he says we must industrialize.
    And with a straight face as if he has absolutely no responsibility for our de-industrialization.

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    John Thomas 6 years ago

    Talk is cheap. He will not put in place a single policy that works. ZANU needs to take little tiny baby steps. It does not know how to walk let alone run.

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    Tsuro 6 years ago

    Cde its cheaper to import or manufacture outside then import into Zim for the following reasons:

    Payment of corruption premium to get licences, move raw materials, get utilities connected, import some necessary materials etc. Estimate based on last project planned: 23%

    Beauracracy(sp) and unnecessary paper work: It takes me 20 mins to process my papers on line for export of certain materials and equipment from Germany. On the Zimbabwe side to receive-2months after 2 weeks delays on the Boarder and moving through 9 offices.

    I am apolitical and my business interest in Zim have been comprised because I am not seen to be supporting Zanu and making donations including for His Excellence Birthday.

    Erratic Power and water Supply critical utilities for my manufacturing.

    Competing with smuggled items, probably smuggled by Politburo member..having paid no duty and VAT with no recourse to justice.

    Cost of borrowing money in Zim…in other countries small business get loans at very subsidised rates to stimulate economy.

    Law enforcement not consistent especially if fighting a Zanu member employee or businessman

    I can go on,High crime rate, Government inconsistent policies, NSSA.ZIMRA,Zimdef,Environment what? Hameno….I am now making products elsewhere and export to Zim…Simple

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    avenger/revenger 6 years ago

    Couldn’t the cadaver find any ” v.I.p. head of state ” to “open the show ” like in years gone by ? Only school age kids go out of boredom. I heard this year was a ‘” ghost show ” . So sad

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    tongogara 6 years ago

    We had a vibrant agric processing industry which Mugabe destroyed, and now he wants to sound like a sane person to say we need manufacturing when he destroyed it! nxa!

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    Mena Bona 6 years ago

    After sixteen years of real sanctions, Rhodesia created one of the most industrialized countries on the continent because of sanctions, in order to survive. Go to the old industrial areas in Harare and Bulawayo, and see the dilapidated factories rotting in the sun. This can be laid firmly on the steps of Jongwe House. Idiots.

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    Straight Shooter 6 years ago

    Gukurahundi rule for 34 years – and only now you start talking about value addition – where and when did you learn of this?

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    senzachena 6 years ago

    To process raw materials you have to have viable factories, to have viable factories you have to have electricity and water. Mugabe your Zimbabwe has nothing but hunger and disease. You are a geriatric fool, I wish you would stop blabbing your never ending drivel, we are sick of hearing your stupid voice. Just hurry up and die and then just possibly the ruin of Zimbabwe which you will leave behind will start picking itself up. Why did Smiths forces not kill you when you were in detention or when you ran away to Mocambique!! It would have saved us all this pain. Zanu Trash

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    Justice 6 years ago

    What an old mumbling fool this man is, continual dribbling of utter rubbish, Zimbos are the most cowed nation on earth!