Source: VP pushes manufacturers to tap into Comesa, Sadc markets – herald
Mukudzei Chingwere recently in MUTARE
VICE PRESIDENT Dr Constantino Chiwenga has urged local manufacturers to ramp up production and position themselves for export markets, warning that Zimbabwe is losing economic opportunities by operating below installed capacity.
Speaking after touring Willowton Group’s Mutare plant, the Vice President said industry must move beyond meeting domestic demand and actively target regional and continental markets.
The plant produces a range of fast-moving consumer goods, including cooking oil, margarine and soaps.
VP Chiwenga said Zimbabwe’s impending assumption of the chairmanship of the Common Market for Eastern and Southern Africa (COMESA) presents a strategic opportunity for local firms to boost exports.
“I am quite impressed with what I have seen. This is in sync with what the Second Republic is preaching. This is what we want to see in the manufacturing sector,” he said.
“Our industries must look at every aspect that can be integrated together.
“There is room for them to expand rapidly, to grow the business, improve distribution and widen market entry not only within Zimbabwe but across the region.”
He noted that COMESA alone represents a market of about 600 million people, while the Southern African Development Community (SADC) has a population exceeding 300 million.
“Once we establish ourselves there, we want to go further into the continent,” he said.
During the tour, company management indicated that production shortfalls are largely due to supply challenges, particularly shortages of raw materials.
In response, VP Chiwenga called for stronger collaboration between industry and the Government, including the formalisation of outgrower schemes and supplier partnerships to ensure consistent supply of raw materials.
He said increasing capacity utilisation rates would not only reduce dependence on imports and protect jobs, but also strengthen Zimbabwe’s competitiveness in fast-growing African consumer markets.
The Government, VP Chiwenga added, is prepared to support industry growth by addressing policy and regulatory bottlenecks. Among the issues raised was the impact of value-added tax (VAT) on capital equipment.
“We agreed on what the Government should do to assist them to grow their business. What is obvious is that they must present their proposals to Central Government,” he said.
“We want them to reach 100 percent of installed capacity. One of their main constraints is VAT. Yes, VAT should be paid.
“But there might be need to fine-tune the approach so that once an investor brings in a machine, we give them the chance to instal it; once they start producing, then we start collecting VAT.”
Willowton Group general manager Mr Gaurav Bhansali said the company has the capacity to scale up production to meet local demand and penetrate export markets.
He welcomed the Government’s willingness to engage and address challenges facing the manufacturing sector.
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