The regional bloc is taking stock of developments in its industrial sectors, and ahead of the upcoming 7th SADC Industrialisation Week in August, Industry and Commerce Permanent Secretary, Dr Thomas Utete Wushe, said in an interview that significant progress has been made.As the countdown to the 44th SADC Summit to be held in Harare in August continues, statistics show that the region has made considerable progress in its industrialisation drive since 2014, when the SADC industrialisation strategy and roadmap was formulated in Victoria Falls.
On its part, Zimbabwe’s industrialisation drive is gathering pace, with the sector surpassing the US$8 billion target that had been set for last year.The regional bloc is taking stock of developments in its industrial sectors, and ahead of the upcoming 7th SADC Industrialisation Week in August, Industry and Commerce Permanent Secretary, Dr Thomas Utete Wushe, said in an interview that significant progress has been made.
“We have witnessed a strong focus on value chain development across key sectors such as agro-processing, pharmaceutical, mineral beneficiation, consumer goods, capital goods, financial and infrastructure sectors, he said.
“Within these, there has been a growing emphasis on innovation and regional collaboration.
“Here in Zimbabwe, we are excited to host the upcoming 7th SADC Industrialisation Week, which will be a great platform to showcase these achievements and discuss the exciting opportunities ahead for a truly industrialised region.”
Dr Utete Wushe said when Zimbabwe took over the SADC chair in 2014, the country was instrumental in front-loading the industrialisation pillar, resulting in the high-level adoption of the industrialisation strategy by the SADC Heads of State. “Basically, the strategy seeks to promote structural transformation of SADC economies. We are set to assume the SADC chairmanship this year again. At the margins, we have a specific event on industrialisation, and this is going to be the seventh event since its inception, the SADC Industrialisation Week, and this is coming under the theme: Promotion innovation to unlock opportunities for sustainable economic growth towards an industrialised SADC.”
On its part, Zimbabwe’s industry has surpassed its target of having an US$8 billion industrial and commercial sector, as the Second Republic’s industrialisation efforts continue to bear fruit. The attainment of such a feat will see a more robust industrial and commercial sector, which is vital for import substitution and a key component of the Government’s vision of creating an upper middle-class economy by 2030.
Dr Utete Wushe said the sector would continue witnessing significant growth, owing to increased investments and improved value addition and beneficiation by businesses, among others.
“Following a robust engagement with the private sector in 2018, we came up with the industrial and commercial sector roadmap (2018-2023),” he said.
The roadmap targeted to increase the growth of the sector to an US$8 billion industry by 2023 from a US$6 billion industry.
“I am pleased to say that we successfully achieved and surpassed our target. I will not hesitate to say that we will continue to witness significant growth in these sectors due to the new investments, improved value addition and beneficiation by firms, the opening of new companies, resuscitation of closed ones, and expansion by existing firms.”
Dr Utete Wushe said the major contributors to the manufacturing and commercial sector GDP growth included food and drink, tobacco, cotton and leather, timber, furniture, pharmaceuticals, paper and packaging.”
Metals, electricals, the motor industry and retail and wholesale trade were also contributing immensely, he said.
Dr Utete Wushe said the manufacturing sector’s capacity use has been on an upward trend over the past years and is presently at 53,2 percent.
In terms of manufacturing sector employment, the labour force survey shows that the sector has created about 272 000 jobs, while locally produced goods occupy 80 percent of shelf-space in wholesalers and retailers, from 53 percent in 2018.
Dr Utete Wushe said the manufacturing sector’s contribution to GDP has increased by 44,9 percent from US$15,54 billion (2009 – 2017) to US$22,51 billion(2018 – 2022).
The increase in local manufacturing sector productivity, he added, contributed to the huge leap in manufactured exports.
Exports went from US$207,35 million in 2020 to US$448,7 million last year, with the major sectors being processed food, manufactured tobacco and packaging.
“Regarding upgrading and new establishments, firms in the manufacturing sector continue to undertake new investments and expansions of existing plants,” he said.
@Wallace Ruzvidzo-Herald Reporter
