PRESENTATION TO THE CHARTERED ACCOUNTANTS OF ZIMBABWE SEMINAR BY HON.C.I.MABUWA DEPUTY MINISTER OF INDUSTRY & COMMERCE GOVERNMENT S INITIATIVES TO REVIVE INDUSTRY 30 JUNE 2015, HARARE
PRESENTATION OUTLINE ZIMASSET IMPLEMENTATION & COORDINATION ARCHITECTURE ZIMASSET CLUSTER MATRIX ZIMASSET ENABLING CLUSTERS ZIMASSET CLUSTERS COMPOSITION ZIMASSET : VALUE ADDITION & BENEFICIATION CLUSTER MEMBERS VALUE ADDITION & BENEFICIATION CLUSTER-VISION, MISSION & GOALS VALUE ADDITION & BENEFICIATION CLUSTER OBJECTIVES VALUE ADDITION & BENEFICIATION KRAS CLUSTER PRIORITY AREAS FOR 2015 DECLINING INDUSTRY CAPACITY UTILISATION TRADE DEVELOPMENTS FOREIGN DIRECT INVESTMENT CREDIT TO PRIVATE SECTOR PRIVATE SECTOR SHORT TERM LOANS PRIVATE SECTOR LONG TERM LOANS SECTORAL DISTRIBUTION OF CREDIT DISTRIBUTION OF CREDIT BY PURPOSE CAPITAL ACCOUNT CONSTRAINTS INDUSTRY REVIVAL INITIATIVES INDUSTIAL REVIVAL POLICY MEASURES
ZIMASSET IMPLEMENTATION & COORDINATION ARCHITECTURE LEVEL COMMITTEE/STRUCTURE SECRETARIAT POLICY LEVEL POLICY LEVEL STEERING COMMITTEE( CHAIR- CHIEF SECRETARY TO OPC) MEETS QUARTERLY COMPRISES GOZ & PRIVATE SECTOR CLUSTER CO- CHAIRPERSONS ZIMASSET JOINT REVIEW COMMITTEE CHAIR-DEP CHIEF SEC-OPC MONTHLY MEETING ZIMASSET TECHNICAL SECRETARIAT ZIMASSET TECHNICAL SECRETARIAT TECHNICAL LEVEL ZIMASSET CLUSTERS CO-CHAIRPERSONS SECRETARIAT
ZIMASSET CLUSTER MATRIX FOOD SECURITY AND NUTRITION CLUSTER SOCIAL SERVICES AND POVERTY ERADICATION CLUSTER INFRASTRUCTURE AND UTILITIES VALUE ADDITION AND BENEFICIATION FISCAL REFORM MEASURES SUB CLUSTER AID COORDINATION PUBLIC ADMINISTRATION, GOVERNMENT AND PERFORMANCE MANAGEMENT
ZIMASSET CLUSTER MATRIX FOOD SECURITY AND NUTRITION CLUSTER SOCIAL SERVICES AND POVERTY ERADICATION CLUSTER INFRASTRUCTURE AND UTILITIES VALUE ADDITION AND BENEFICIATION FISCAL REFORM MEASURES SUB CLUSTER AID COORDINATION PUBLIC ADMINISTRATION, GOVERNMENT AND PERFORMANCE MANAGEMENT
ZIMASSET ENABLING CLUSTERS FISCAL REFORM MEASURES AID COORDINATION PUBLIC ADMINISTRATION, GOVERNANCE & PERFORMANCE MANAGEMENT CHAIR-MINISTRY OF FINANCE CHAIR-MINISTRY OF FINANCE CHAIR OFFICE OF THE PRESIDENT & CABINET
ZIMASSET CLUSTERS COMPOSITION ZIMASSET CO-CHAIRPERSONS PERMANENT SECRETARIES FOCAL PERSONS OF LINE MINISTRIES PRIVATE SECTOR REPRESENTATION ( BUSINESS/SECTOR ORGANISATIONS) DEVELOPMENT PARTNERS( UN, WORLD BANK,IMF & AFDB) NGO REPRESENTATION ACADEMIA CONVENER OF MEETINGS-ZIMASSET TECNHICAL SECRETARIAT
ZIMASSET VALUE ADDITION & BENEFICIATION CLUSTER MEMBERS GOVERNMENT OF ZIMBABWE REPRESENTATION Ministry of Industry and Commerce (MoIC) (Co-Chair) Ministry of Mines and Mining Development (MoMMD) (Co-Chair) Ministry of Agriculture, Mechanisation and Irrigation (MoAMI) Ministry of Energy and Power Development (MoEPD) Ministry of Higher and Tertiary Education, Science and Technology Development (MoHTESTD) Ministry of Small and Medium Enterprises and Cooperative Development (MoSMECD) BUSINESS / SECTOR ORGANISATIONS ZNCC,CZI ( CO-CHAIRS) EMCOZ, BUSINESS ASSOCIATION OF ZIMBABWE CHAMBER OF MINES, SMALL-SCALE MINERS CFU, ZCFU,FARMERS DEVELOPMENT TRUST ZERA ACADEMIA & RESEARCH INSTITUTIONS COOPERATIVES, SME BUSINESS ORGANISATIONS
VALUE ADDITION & BENEFICIATION CLUSTER VISION, MISSION & GOALS CLUSTER VISION VALUE ADDITION AND BENEFICIATION FOR AN EMPOWERED SOCIETY AND GROWING ECONOMY. CLUSTER MISSION TO IDENTIFY HIGH IMPACT VALUE CHAINS, PROMOTE GROWTH OF VALUE ADDITION AND BENEFICIATION ACTIVITIES AND CREATE A CONDUCIVE POLICY, INSTITUTIONAL AND REGULATORY FRAMEWORK FOR ENHANCED PRODUCTIVITY AND COMPETITIVENESS. CLUSTER GOALS TO INCREASE THE MINERAL BENEFICIATION, MANUFACTURING AND SERVICES SECTORS` GDP GROWTH RATE FROM THE CURRENT 3.1 TO 6.6% BY 31 DECEMBER 2018.
VALUE ADDITION & BENEFICIATION CLUSTER OBJECTIVES FOR 2015 TO INCREASE PRODUCTION OF VALUE ADDED GOODS AND SERVICES BY 10% BY 31 DECEMBER 2015. TO INCREASE DIRECT INVESTMENT INTO MINING, MANUFACTURING AND SERVICES SECTOR BY 10% BY 31 DECEMBER 2015. TO INCREASE EXPORTS OF VALUE ADDED GOODS AND SERVICES BY 5% BY 31 DECEMBER 2015. TO REDUCE THE COUNTRY S TRADE DEFICIT BY 5% BY 31 DECEMBER 2015. TO INCREASE REVENUE FROM VALUE ADDED GOODS AND SERVICES BY 10% BY 31 DECEMBER 2015. TO INCREASE EMPLOYMENT IN THE VALUE ADDITION AND BENEFICIATION CLUSTER BY 3% BY 31 DECEMBER 2015. TO IMPROVE THE ZIMBABWE EASE-OF-DOING-BUSINESS WORLD RATING FROM 168 OUT 189 TO BELOW 150 BY 31 DECEMBER 2015. TO INCREASE RESEARCH AND DEVELOPMENT BY 5% BY 31 DECEMBER 2015.
CLUSTER KEY RESULT AREAS MANUFACTURING AND AGRO-PROCESSING MINING DEVELOPMENT AND PROMOTION TRADE, TOURISM AND INVESTMENT PROMOTION CAPACITY BUILDING & DEVELOPMENT POLICY AND LEGISLATION REFORMS
CLUSTER PRIORITY AREAS FOR 2015 AGRO-PROCESSING FRUIT JUICE MANUFACTURING COOKING OIL MANUFACTURING STOCK FEEDS PRODUCTION FERTILIZER PRODUCTION PRODUCTION AND VALUE ADDITION OF HONEY DEVELOPING THE COTTON TO CLOTHING VALUE CHAIN DEVELOPING THE DAIRY SECTOR VALUE CHAIN DEVELOPING THE BEEF SECTOR VALUE CHAIN PRODUCTION OF LEATHER AND LEATHER PRODUCTS PRODUCTION OF PHARMACEUTICALS VALUE ADDITION OF DIAMONDS (CUTTING AND POLISHING OF DIAMONDS) CHROME BENEFICIATION
CLUSTER PRIORITY AREAS FOR 2015 FINALIZATION OF NEWZIM STEEL DEAL PRODUCTION OF ENERGY MINERALS (COAL BED METHANE GAS) RESUSCITATION OF DORMANT MINES CREATION OF INDUSTRIAL DATABASES (MINERALS, INDUSTRY, SMES) HUMAN CAPITAL DEVELOPMENT (ENTREPRENEURSHIP, LINKAGES WITH INSTITUTIONS OF HIGHER LEARNING). TOURISM DEVELOPMENT AND PROMOTION TRADE AND INVESTMENT PROMOTION CREATION OF INDUSTRIAL AND TOURISM DEVELOPMENT FUNDS
70.0% DECLINING INDUSTRIAL CAPACITY UTILIZATION SOURCE-RESERVE BANK OF ZIMBABWE/CZI 60.0% 57.2% 50.0% 40.0% 32.3% 43.7% 44.9% 39.6% 36.3% 30.0% 20.0% 10.0% 0.0% 2009 2010 2011 2012 2013 2014
10,000 TRADE DEVELOPMENTS (US$M) SOURCE-RESERVE BANK OF ZIMBABWE 8,000 6,000 4,000 3,213 3,244 5,162 4,416 7,562 6,710 6,809 6,306 6,175 3,808 3,694 3,558 3,682 2,000 1,613-2009 2010 2011 2012 2013 2014 2015 (2,000) (4,000) Exports Imports Trade Balance
FOREIGN DIRECT INVESTMENT (US$M) SOURCE-RESERVE BANK OF ZIMBABWE 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 2013 2014 FDI Inflows FDI (Net) FDI Outflows
CREDIT TO PRIVATE SECTOR SOURCE-RESERVE BANK OF ZIMBABWE IN LINE WITH GROWTH IN MONEY SUPPLY, GROWTH IN CREDIT TO THE PRIVATE, FELL FROM AS HIGH AS 600% IN 2010 TO AN AVERAGE OF 2.6% IN THE FIRST FOUR MONTHS OF 2015. SLOWDOWN IN CREDIT DOES NOT SUPPORT THE ENVISAGED REAL GDP GROWTH RATES OF AN AVERAGE OF 7.3% PROJECTED IN ZIMASSET. LIMITED ACCESS TO CREDIT STARVES THE PRIVATE SECTOR OF RESOURCES TO GROW THE ECONOMY. THE RESUSCITATION OF THE INTERBANK MARKET THROUGH THE INTRODUCTION OF THE AFRITRADE FACILITY IS ENVISAGED TO EASE LIQUIDITY RISKS, ALLOWING BANKS TO INCREASE THEIR INTERMEDIATION ACTIVITIES.
1200 PRIVATE SECTOR SHORT TERM LOANS (US$M) SOURCE-RESERVE BANK OF ZIMBABWE 1000 800 600 400 200 0 2008 2009 2010 2011 2012 2013 2014 ShortTerm Loans (Receipts) ShortTerm Loans (Payments) ShortTerm Loans (Net)
PRIVATE SECTOR LONG TERM LOANS (US$M) SOURCE-RESERVE BANK OF ZIMBABWE 1600 1400 1200 1000 800 600 400 200 0-200 2008 2009 2010 2011 2012 2013 2014 Disbursements Scheduled Payments Net Long Term Loans
SECTORAL DISTRIBUTION OF CREDIT(2010-MAR 2015) SOURCE-RESERVE BANK OF ZIMBABWE CONSTRUCTION, 1.02% COMMUNICATIONS, 1.48% TRANSPORT, 1.59% SERVICES, 17.27% FINANCIAL ORGANISATIONS, 4.61% CONGLOMERATE, 0.03% DISTRIBUTION, 15.06% HOUSEHOLDS, 18.38% MANUFACTURING, 15.26% AGRICULTURE, 18.54% MINING, 6.75%
DISTRIBUTION OF CREDIT BY PURPOSE(2010-MAR 2015) SOURCE-RESERVE BANK OF ZIMBABWE Pre & Post shipment financing, 0.74% Consumer Durables, 11.33% Recurrent Expenditures, 79.94% Capital expenditures, 7.99%
CAPITAL ACCOUNT CONSTRAINTS CAPITAL ACCOUNT PERFORMANCE REMAINS CONSTRAINED BY: SUBDUED FDI INFLOWS; LACK OF BALANCE OF PAYMENTS AND BUDGETARY SUPPORT; STRINGENT CONDITIONS PRECEDENT SET BY SOME INTERNATIONAL LENDERS; LIMITED ACCESS TO AFFORDABLE INTERNATIONAL CREDIT LINES.
INDUSTRY REVIVAL INITIATIVES TRI-PARTITE FREE TRADE AREA AND BENEFITS ACCRUING FROM I-EPA RULES OF ORIGIN,MARKET ACCESS,TRADE FACILITATION,TRADE IN SERVICES LOCAL MARKET SURVEYS TO ESTABLISH STATUS OF LOCAL PRODUCERS( MAY-JUNE 2015) DATABASE DEVELOPMENT OF MANUFACTURERS FOR INFORMED DECISION MAKING (JUNE 2015) MANUFACTURING MARKET SURVEY ( CZI,ZIMSTATS)(WIP) TARIFF INSTRUMENTS ON SELECTED PRODUCTS TO SUPPORT LOCAL INDUSTRY NATIONAL COMPETITIVENESS COMMISSION BILL/RBZ INITIATIVES-BOND COINS & PR ON COSTS REDUCTION DIMAF 2-WORK IN PROGRESS ON MODALITIES/PRESCRIPTIVE MODEL INDUSTRIAL DEVELOPMENT FUND ( AS PER IDP 2012-16 AND ZIMASSET 2013-18)
INDUSTRY REVIVAL POLICY MEASURES LEATHER & LEATHER PRODUCTS STRATEGY ( 2013)( ITC/COMESA FUND) STATUTORY INSTRUMENT 16 OF 2015 ON EXPORTS OF UN-BENEFICIATED HIDES IMPLEMENTATION MATRIX ON VALUE CHAIN DEVELOPMENT PHARMACEUTICAL INDUSTRY STRATEGY DEVELOPMENT ( UNIDO/COMESA FUND) TARIFF MEASURES ON RAW MATERIAL & FINISHED GOODS PROCUREMENT POLICY INITIATIVES/INTERVENTIONS COTTON TO CLOTHING VALUE CHAIN STRATEGY (2014)( COMESA FUND) STUDY VISIT TO KENYA ON POLICY DEVELOPMENT(ALREADY ACTIONED) STUDY VISIT TO EGYPT ON POLICY DEVELOPMENT(PENDING) COTTON PRICING MODEL DEVELOPMENT(WIP) ASSISTANCE TO ASSOCIATION OF COTTON VALUE ADDERS OF ZIMBABWE(ACVAZ)
THANK YOU SIYABONGA TATENDA EMAILS: ptakavarasha@mic.gov.zw Cell: 0713026980, 0738002005 & 0772635366 Direct: 04798424