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Speech by Prime Minister Morgan Tsvangirai at the official launch of the Industrial Development Policy and National Trade Policy
Prime Minister Morgan Tsvangirai
March 29, 2012

His Excellency, President of the Republic of Zimbabwe, Cde R. G. Mugabe,
Hon Vice Presidents of the Republic of Zimbabwe,
Deputy Prime Ministers here present,
The Minister of Industry, Professor Welshman Ncube,
Honorable Ministers, Deputy Ministers present today,
Members of Parliament,
Members of the Diplomatic Corps,
Members of the Business community,
Invited Guests, Ladies and Gentlemen,

It gives me great pleasure and honour to be invited to speak at this landmark occasion in the history of Zimbabwe's economy, the occasion of the launching of two policies namely the Industrial Development Policy and the National Trade Policy (2012-2016).

The event is particularly important because launching of the policies is a response to the gaps identified in both the industrial and trade areas.

I am particularly happy that these policies have been developed in line with the priorities set out in the Government Work Programme that was approved by Cabinet in 2010.

The two policies have also been developed as part of implementation of the country's national development strategy, the Medium Term Plan (2011-2015) that was launched in July last year.

I want to say that as a country, we must slowly move away from the culture of producing quality policies that are never implemented. We must move beyond simply launching policies to implementing what we have set out to do.

In view of that, I wish to congratulate the Minister of Industry and Commerce for spearheading the drafting of the policies which I hope will be implemented to guide the country in its effort not only to restore industry's capacity utilization levels to yesteryear figures but also to develop new capacities, as well as recommend strategies to promote and increase Zimbabwe's trade with the rest of the world.

I have attended two investment conferences in the past month, one in South Africa and the other in London, and I want to tell you that there is massive interest out there to invest in Africa in general and Zimbabwe in particular. In the absence of toxic politics, conflict and mixed messages emanating from the same Government, we are poised as a country to be the ultimate destination for trade and investment.

You will agree with me that the new Industrial Development Policy was long overdue. Everyone here knows and understands the difficult environment that our manufacturing industry has been operating under in the last decade or so. You are aware that at the height of the economic meltdown, most companies closed down and the few companies that were resolute enough to remain open were operating at very low capacity levels averaging between 5 and 10%.

The situation was worsened by the poor performance of the public utilities namely electricity, water, rail and road transport and telecommunications which are key enablers for the manufacturing sector.

The sector was also not spared from the massive exodus of qualified and technical personnel that the country suffered. You are also aware that one of the biggest challenges that this sector faced was lack of credit facilities to enable the players to borrow money for working capital and purchasing new equipment as the sector is inundated with obsolete equipment.

Your Excellency, Ladies and Gentlemen, I have managed to traverse the country assessing GWP projects and I was shocked by the old equipment in some of the key industries in our towns and cities, with some of them dating back to 1923.

The vision of the new Industrial Development Framework is to transform Zimbabwe from a producer of primary goods into a producer of value-added goods for both the domestic and the export market.

For the policy to achieve this, a number of strategies will be introduced such as creation of a well-resourced financing institution dedicated to provide industrial needs, provision of funds to distressed Strategic Companies, review of import tariffs and VAT on industrial raw materials and packaging, among others.

The National Trade Policy (NTP) was also developed after realizing that in order for Zimbabwe to compete successfully in the changing regional trade and global markets, it was important to develop a comprehensive and up-to-date policy with measures and strategies that will enable trade to be the engine for sustainable economic growth and development for Zimbabwe.

The NTP will be the guiding document towards any future agreements between Zimbabwe and her trading partners to ensure effective participation in the changing regional and global trading environment.

The NTP is expected to increase exports and promote the diversification of the country's export basket by harnessing comparative advantage in key priority sectors with the ultimate target of increasing export earnings by 10% annually from US$2.5 billion in 2010 to US$4.5 billion in 2016.

The other objective is to consolidate and expand existing export markets and explore new ones; to expand into regional markets in the context of deeper regional integration; to enhance trade facilitation in order to expedite trade flows by streamlining and simplifying exporting and importing procedures; and to give guidance on trade policy instruments such as tariffs, non-tariff measures and trade defence mechanisms with the aim of promoting trade, protecting local industry from unfair trade practices as well as improving access by consumers to a wider range of goods and services.

You will note that these two policies will complement each other. The NTP will leverage the Industrial Development Policy by restoring the manufacturing sector's contribution to export earnings from the current 16% to 50% by 2015. The NTP will transform Zimbabwe from being an exporter of primary products to an exporter of value added high quality processed goods whilst also promoting the consumption of locally produced goods and services.

Hon. Minister, you have done an excellent job in coming up with the two policies as the nation works its way to implement the MTP.

However I wish to highlight that these policies will achieve their set objectives only if there is an inclusive approach involving all relevant stakeholders. These stakeholders include the Government as facilitators, the Private Sector as partners and implementers, and the Civil Society as supporters and governance & accountability watchdogs.

A stable macroeconomic environment is also necessary to create a conducive environment for trade to thrive. Policies such as the use of the multi-currency system and exchange control liberalization, among other trade-supporting fiscal and monetary policies, are expected to remain in place. Any policy reversals and inconsistencies on these policies will, to a greater extent, affect the implementation of the National Trade Policy and attainment of the intended objectives.

The implementation of the National Trade Policy is also premised on the expectation that the current Government continues to function well with institutional capacity to create an environment that will continue to restore business confidence to trade and invest. I am aware that the constitutional term of this current government is nearing its end hence the need to plan for a credible election whose results will not destabilise the positive business environment that has been created by the inclusive government.

I wish to call upon all relevant stakeholders especially members of the business community to support these initiatives which I believe have been done for you.

Your Excellency, I am informed that implementation matrices have been developed for the two policies which will guide implementation of the policies as they clearly assign responsibilities for some areas to other stakeholders. I am convinced that this will facilitate transparency in the process of monitoring and evaluation.

To conclude let me once again congratulate Professor Ncube and his Ministry on the job well-done and wish them all the best as they begin the process of implementing the policies.

Once again, let's move beyond policy pronouncements to policy implementation in a manner that benefits the country and its citizens.

I thank you.

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