Govt engages private sector on industrial, trade polices coordination

Govt engages private sector on industrial, trade polices coordination
Published: 07 July 2014
The Government has engaged the private sector in seeking out solutions on how to effectively coordinate the country's Industrial Development Policy (IDP) and the National Trade Policy (NTP).

Effective coordination and implementation of the two policies could see Zimbabwe realising $7 billion in exports by 2016.

Through the IDP and NTP Government plans to restore the manufacturing sector's contribution to GDP from the current 15 percent to 30 percent as well as contribution to exports from 26 percent to 50 percent by 2016.

Government today said it is working with the public and private industrial sectors to determine whether there are problems in synchronisation of the IDP and NTP.

Ministry of Industry and Commerce director of research and domestic trade Charles Mujajati said private sector investment and development policies are essential for economic growth.

He was speaking at a policy dialogue workshop on improving trade and industrial policy coordination in Harare this morning.

"Economic progress depends on a business climate that is conducive to private investment and enterprise, private sector development policies, infrastructure and supporting laws and regulations which are designed within a coherent policy framework," he said.

The effective implementation of an industrial development policy will also mean corresponding effectiveness in trade policy insofar as industrial and trade policies always - or at least ideally - should go hand-in-hand.

An industrial policy deals with the productive capacities of an economy, while a trade policy determines strategies and policies that facilitate their exchange/trade.

According to University of Zimbabwe senior lecturer Dr Albert Makochekanwa, Zimbabwe is currently experiencing a "competitiveness gap".

"The country is experiencing a competitiveness gap where total imports are expected to grow to $8,3 billion in 2014 from the $6,6 billion recorded in October 2013," he said.

He said close to 67,5 percent of products consumed in the country are foreign against the expected GDP of $12,33 billion of the country.

"Against the expected GDP of $12,33 billion for our country in 2014, almost 67,5 percent of the products consumed locally are foreign produced. This shows the nation is currently producing about 32,5 percent which is far less than the 50 percent of the country's GDP," he said.

Coordination of the two policies, especially making the manufacturing sector competitive by improving the operating environment will drive the fortunes of the export sector.
- BH24
Tags: Zimbabwe,


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