Industry Minister Mangaliso Ndlovu has raised questions over local manufacturers’ capacity to fend for the nation after it has emerged that only US$230 receipts were produced from a total US$1 billion government export support to manufacturers last year.
In an interview with NewZimbabwe.com Business on the sidelines of a Value Chains Identification workshop held recently, Ndlovu confirmed the development adding that there is need to carry out deeper analysis of the country’s industrial problems.
“We are investing way more than we are exporting,” he said.
“For instance in 2018, government extended support to industry which is in excess of US$1 billion but in turn, export receipts which are less than US$230 million were produced and this signifies that there is need to analyse problems in the country’s raw material value chain systems.”
The remarks come at a time the country’s industry has been accused of shortchanging the nation through failure to produce enough even after government has sourced foreign currency for it.
Confederation of Zimbabwe Industries president, Sifelani Jabangwe has ruled out the possibility of leakages in foreign currency usage affirming that the support availed was properly used.
“What we need to appreciate is that in terms of manufacturing, every $1 billion injected, we save almost the same when we use it to manufacture our own goods than to import.
“So in essence here is that if we managed to produce export receipts worth US$230 million, the total amount which was generated as a result of the support is $1.2 billion,” he said.
Top business executive, Devine Ndhlukula also dismissed foul play by the private sector saying that the central bank has a very efficient system which can sniff out such inconsistencies should they occur.
Source : New Zimbabwe