Zim focusing on exploiting value chains to industrialize

08 Feb, 2019 - 15:02 0 Views
Zim focusing on exploiting value chains to industrialize Nqobizitha Mangaliso Ndlovu

eBusiness Weekly

HARARE – Exploiting value chains in the  manufacturing sector can help the country make progress in opening new  companies and growing existing ones as well as saving millions through  cutting on unnecessary imports, a cabinet Minister said on Thursday.

A value chain is a set of activities that a firm operating in a  specific industry performs in order to deliver a product or service for  the market.

Value chains assist companies exploit synergies and linkages within the  production system starting from where raw materials are gathered to  production and delivery of the final product.

Industry and Commerce Minister, Mangaliso Ndlovu told Members of  Parliament and captains of industry at a workshop on value chain  development that the government was, in the initial stages, focusing on  value chains with high employment and export potential as well as  comparative and competitive advantage.

“The ultimate goal is to maximize value creation as well as minimizing  costs. To be globally competitive we look at the things we can do best  or much better than others,” he said.

“Value chain development is a key driver for industrialization and  necessary for the attainment of an upper-middle class economy by 2030.”

Ndlovu said focus was currently on exploiting value chains in the  leather, pharmaceuticals, cotton to clothing industries.

He said a study had shown that the country could save millions through  import substitution as billions were being spent annually importing  goods that could be made locally.

“For every litre of milk that is imported it costs 85 cents, and if the  same is produced locally it costs 25 cents,” he said.

“On average there is a cost saving of 40 cents on every $1 spent on  importing packaging material.”

The government, Ndlovu said, was keen to play its part in creating an  environment for industry to flourish through exploiting value chains,  stressing it was up to the private sector to push for implementation.

Ndlovu however noted that among others, the high costs of doing  business, depressed local demand, competition from cheap imports and  foreign currency shortages were among major hindrances to exploiting  value chains – New Ziana

Share This:

Sponsored Links