Various challenges continue to hinder the full attainment of Zimbabwe’s re-industrialisation agenda, which is in line with SADC drive.
High costs of doing business, low foreign direct investment, legislative loopholes and uncompetitiveness of local products have been cited as the major challenges.
In a bid to promote productivity of the local industry, Zimbabwe embarked on the re-industrialisation agenda way before SADC had introduced the concept to member states.
However, stakeholders say despite a number of policy measures that government has come up with, there a number of constraints which are working against the attainment of full industrialisation process.
“The cost of doing business in the country are very high, owing to high utility bills,” an economist, Professor Albert Makochekanwa said.
Other regional countries are registering foreign direct investment averaging US$5 billion annually, while Zimbabwe is attaining below US$1 billion, reflecting low foreign direct investment as one of the challenges.
A number of bills are still going through parliament processes and a business executive, Dr Taka Munyenyiwa feels that delays in coming up with supportive legislation is also working against addressing of the ease of doing business.
With the local manufacturing sector increasing industrial capacity utilisation, accessing finance has been another challenge that the local manufacturers continue to face.
The growth of the manufacturing sector and the industry as a whole is hinged on the capacity of fiscal and monetary authorities to address these challenges and a commitment to ensure that employment is created and export receipts increased, among other targets.