Govt pledges to sustain import substitution drive

THE Government has reiterated its commitment to sustain efforts aimed at reducing imports and boosting domestic industrial production to grow the economy, a Cabinet minister has said Zimbabwe is pursuing import substitution to address its balance of payments deficits, reduce reliance on foreign currency and stimulate domestic industries This strategy aims to replace imported goods with locally produced alternatives, boosting local production and employment The Government also hopes to strengthen the country’s industrial base and reduce vulnerability to external economic shocks Already, several interventions have since been rolled out to promote industrial growth, including measures to enhance intermediate manufacturing, optimise value chains and increase local content in manufactured goods Statistics indicate that Zimbabwe has saved over US$180 million through import substitution in the past two years, primarily in crude oil, seed and dairy products, among others Manufacturing is one of Zimbabwe’s key economic sectors, along with mining, agriculture and tourism In 2022, the manufacturing sector contributed 21,49 percent to Zimbabwe’s gross domestic product, according to the World Bank Industry and Commerce Minister Mangaliso Ndlovu, in an interview after the tour of Profeeds Bulawayo plant recently, said the country’s short-term manufacturing blueprint, the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) had been key in propelling import substitution ZIGRP is a transitional industrial reboot plan, crafted to bridge the gap between the Zimbabwe National Industrial Development Policy 1 (ZNIDP1), the five-year blueprint which expired in December 2023, and the forthcoming ZNIDP2 (2026 to 2030) “You would recall that at the end of last year, we launched the ZIRGP The plan runs from October 2024 to December 2025 and we did say that this is a transitional plan for 15 months “Our focus remains on addressing key fundamentals in the manufacturing sector, among them the ease and cost of doing business.” “I’m sure you have heard what the Government has done, especially in addressing this In the last Cabinet, we were discussing stockfeed manufacturing, looking at regulations that have to do with companies that are in this sector “We also looked at the dairy and livestock sectors,” he said The minister said the Government had adopted drastic measures to make sure that companies were profitable and they could create more employment to produce cheaper for domestic and export markets He said the Government’s vision for the near future was to drive growth in exports “So, first it’s import substitution, where we were importing stock feed, now we are producing locally I’m happy that companies like Profeeds have started exporting “As the Government, we need to help them drive their costs down further so that they can penetrate the region and the continent at large.” Minister Ndlovu added that through the ZIGRP, Zimbabwe had recorded notable achievements during the operation of the framework in supporting industrial growth, while consultations were ongoing for the ZNIDP 2, which will run over the same period as the National Development Strategy 2 (NDS2) Such frameworks, the minister noted, are in line with President Mnangagwa’s calls for Zimbabweans to invest locally “The Government is there to support the private sector and you are aware that the President has been officially opening major projects being invested in by a number of organisations in different sectors “Zimbabwe is on the right path to industrialisation with more strategic investors now gaining confidence in the Government’s national development trajectory,” he said He said as the Government works on initiatives to achieve a prosperous Zimbabwe, leaving no one and no place behind in line with President Mnangagwa’s pronouncements and Vision 2030, factories should spread and invest across the country, including in rural areas, as well as creating employment and positively contributing to economic growth – Herald Originally published on The Zimbabwe Mail All Zim News is a central hub for all things Zimbabwean, curating news from across the country so no story is missed Alongside aggregation, our team of nationwide reporters provides real-time, on-the-ground coverage Stay informed and connected — reach us at admin@allzimnews.com . Source: Thezimbabwemail