Business

Zim industrial policy to prioritise textile sector

INDUSTRIAL POLICY TO PRIORITISE TEXTILE SECTOR
Harare March 28, 2012 (New Ziana)-The Industrial Policy to be launched this week will prioritise revival of the textile industry which is now almost nonexistent due the economic melt down experienced in the past decade, a cabinet Minister said Wednesday.
The government is launching the policy this Thursday and it is intended to lift industrial output from 40 to 100 percent by 2015.
It is anticipated that the manufacturing sector will contribute 30 percent of the Gross Domestic Product by 2015.
A major feature of the policy is the establishment of an Industrial Development Bank (IDB) within six months of the launch of the policy.
Addressing delegates at a three day Confederation of Zimbabwe Industries international business expo, Industry and Commerce Minister Prof Welshman Ncube said the clothing and the textile industry was one of the key sectors which the policy sought to resuscitate.
“We will be launching the Industrial and Trade policies tomorrow as one of the array of measures designed to improve the context of doing business in Zimbabwe,” he said.
Ncube said the government had put in place a host of other measures to promote and protect investment in the country.
“There is now political stability in the country. We are now using the multiple currencies amongst others, all meant to reduce the risk of doing business in the country,” he said.
He said the country was working on mending relations with international partners.
“We are restoring international relations with the European Union, America and others,” he said.
According to CZI, the country requires US$2 billion to return to its former status although the economy is on the recovery path and rated the fastest growing in the region, at nine percent per annum.
Ncube said economic challenges the country was facing were all investment opportunities which could be exploited.
“Poor infrastructure and road and rail network, power shortages and lack of credit lines are all opportunities that can be exploited,” he said.
“We guarantee the safety of your business and as government we will continue to address those things that remain a concern to the business community and to investors.”
New Ziana

Zim urged to revamp infrastructure to promote investment

INFRASTRUCTURE DEVELOPMENT KEY TO TRADE AND INVESTMENT
Harare March 27, 2012 (New Ziana) –The Zimbabwe government should rehabilitate and develop the transport and communication infrastructure in the country to stimulate trade and investment, experts said on Tuesday.
Zimbabwe has good infrastructure compared to many other countries in the region.
However, lack of maintenance over the past decade when the country was experiencing economic meltdown saw most of it deteriorating to poor conditions.
Speaking on the sidelines of the ongoing Trade and Investment Conference in the capital, South African based DLM Business Enterprise chief executive officer Daniel Magagula said sound infrastructure reduced operational costs as all capital injections would be channeled towards production.
Magagula said the government had a responsibility to provide an environment to attract investment in the country.
“Zimbabwe has infrastructure that only needs refurbishment compared to other countries in the region.
“In some countries it is different. You start from scratch which usually compromises the investment opportunities,” he said.
He said the government should urgently revive the rail and air transport systems as they were vital sectors in the economy.
Magagula said there was also an urgent need to improve the water, sewer reticulation and drainage systems in the country.
“If flooding occurs on roads, the water will contribute immensely towards destruction of the roads,” he said.
Confederation of Zimbabwe Industries (CZI) president Joseph Kanyekanye concurred with Magagula that rehabilitation of transport and communication infrastructure should be prioritized as it played important roles in developing trade.
Kanyekanye however noted that high utility bills hampered efforts to attract foreign investment.
He said tariffs should be charged in line with regional rates so that it became competitive to investment in the country.
Zimbabwe has become a destination of choice for foreign investment due to the political and economic stability that followed formation of the inclusive government in 2008 and adoption of multiple foreign currencies in 2009.
The country has recorded the lowest inflation in the region maintaining a single digit rate of 3,5 percent while industrial capacity utilization improved from 10 percent in 2009 to 57, 2 percent at the end of 2011.
New Ziana

DIMAF legally non existent

DIMAF FUND LEGALLY NON EXISTENT
Harare March 27, 2012 (New Ziana) -The Distressed Industries and Marginalized Areas Fund (DIMAF) is not yet legally operational as the Zimbabwe government has not yet put in its US$20 million contribution, The Parliamentary heard on Tuesday.
The US$40 million fund, which was launched last year in partnership with Old Mutual with CABS being the administrator, was intended to revive ailing industries.
CABS managing director Kevin Terry told the Parliamentary Portfolio Committee on Industry and Commerce that without government’s contribution there was effectively no fund to talk about.
“In a strict legal sense there is no DIMAF fund yet. CABS have Old Mutual’s deposit but it does not have government’s funds nor a guarantee so effectively there is still no DIMAF fund,” he said.
“We are using Old Mutual’s funds to get this thing going at our own risk. I am stuck between a rock and a hard place because if we lose this money I will have a lot of explaining to do,” he added.
Terry said the full agreement and a government guarantee to operationalise the fund was also yet to be signed adding that at present only a Memorandum of Understanding was in place.
He said to date only US$800 000 had been disbursed to six successful applicants while 31 firms were still having their applications vetted.
Terry dismissed the notion that the fund was only meant for Bulawayo industries saying according to the MoU that the partners signed, firms from the whole country could benefit.
He however admitted that it would be difficult for the companies that access the money to repay the loans since they were struggling.
Terry denied reports that conditions imposed by CABS for accessing the loans were too stringent and made it difficult for firms to access the fund.
Firms can access loans of up to US$1 million for a period of two years at ten percent per annum, he said.
“All the terms were spelt out in the MoU. CABS has not imposed any new terms and conditions,” said Terry.
The government has implemented various measures to revive the fortunes of ailing industries in the country including setting up other credit lines like the ZETREF fund.
It has also crafted policies which include the Industrial Development Policy and the National Trade Policy which will be launched this week to stimulate recovery of industry and commerce.
New Ziana

Zim to launch industrial and trade development policies

ALL SET FOR INDUSTRIAL AND TRADE DEVELOPMENT POLICIES LAUNCH
Harare March 26, 2012 (New Ziana) -All is set for the launch of the Industrial Development and the National Trade Policies which seek to guide revival of industry and commerce in Zimbabwe over the next four years, a cabinet Minister said on Monday.
Industry and Trade Minister Professor Welshman Ncube told a press conference that the two policies would be launched concurrently this Thursday at a function which President Robert Mugabe and Prime Minister Morgan Tsvangirai are expected to attend.
“The IDP and NTP are critical policy documents needed in facilitating the revival of industry and commerce in the country,” he said.
Ncube said the Industrial Development Policy seeks to raise capacity utilization, which is currently hovering around 57 percent, to 80 percent.
“The vision of the IDP is to transform Zimbabwe from a producer of primary goods into a producer of processed value added goods for both the domestic and export market.
He the NTP would stimulate the productive sectors of the economy towards export orientation and international competitiveness.
The overall objective of the two policies, Ncube said, was to restore the contribution of the manufacturing sector to the Gross Domestic Product from the current 15 percent to 30 percent while increasing its contribution to exports from 26 percent to 50 percent.
“With the ultimate target of increasing export earnings by at least 10 percent annually from US$4, 3 billion in 2011 to US$7 billion in 2016,” he said.
Ncube said the government might consider converting the Industrial Development Corporation IDC into a financial institution to source funding for the implementation of the policies.
“We might dedicate a financial institution to industrial development just like the way Agribank works for agriculture.
“But we need a healthy mix of external and internal sources of funding because we do not have sufficient money as government,” he said.
As the economy continues on a growth trajectory it is necessary for Zimbabwe to implement policies that favor industrial growth and secure adequate funding required for retooling.
It is estimated that at least US$ 2 billion in fresh capital is required to recapitalize industries in the country.
New Ziana

Agrifoods opens three new branches

AGRIFOODS OPENS THREE NEW BRANCHES
Harare March 22, 2012 (New Ziana) – Stock feeds producer Agrifoods on Thursday said it has opened three new depots to broaden its market base and maximize returns.
Sales and distribution manager Luke Mutemeri said the company had opened the new branches to give convenience to customers.
“Our objective in opening new branches is to get as close as possible to our customers who in most cases are farmers.
“We also want to reduce their travel expenses by visiting their nearest Agrifoods depots,” he said.
The new branches were opened in Harare in the Kopje area, Bindura and Zvishavane.
“Bindura and Zvishavane did not have Agrifoods depots and it is a positive development for the farmers. In Harare it has been located in Kopje area where there is little traffic and there is a lot of parking space for those who buy in bulk,” he said.
A subsidiary of CFI Holdings, Agrifoods, produces and distributes a wide range of feeds for domesticated animals such as cattle, goats, sheep, horses, chickens and pigs.
New Ziana

Photo Gallery 

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/536265img1.jpg

Kids talk to soldier dad in Ir

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/168258img2.jpg

U.S. lacks mechanism to accura

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/133965img3.jpg

US Tank and Cryogenics has ove

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/507035img4.jpg

The Black Hawk helicopter seri

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/371478img5.jpg

Listen to child soldiers, woun

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/774443img7.jpg

Helicopters carried US and Afg

Rioting has erupted at a march to commemorate the killing of a 15-year-old boy who was shot by Greek police in 2008. Officers fired tear gas at scores of hooded See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/571155img14.jpg

We left the observation post t

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/205742img16.jpg

Street Battles As Army Tackles

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

http://newziana.co.zw/components/com_gk3_photoslide/thumbs_big/564842img17.jpg

Thousands of Troops Are Deploy

President-elect Barack Obama intends to sign off on Pentagon plans to send up to 30,000 more U.S. troops to Afghanistan, but the incoming administration does not anticipate that the Iraq-like See details

Latest comments