The ManicaPost
Business Correspondent
FINANCE and Economic Development Minister, Cde Patrick Chinamasa, has called for renewed trust between the private sector and Government, urging the private sector to forget about past conflicts and look ahead optimistically.
This was said last Thursday during a Confederation of Zimbabwe Industries meeting with Manicaland captains of industry where the Finance Minister was the guest of honour.
In the no-holds bar meeting, businesspeople expressed concern over lack of meaningful investments Manicaland despite it being endowed with so much natural resources wealth.
Prominent real estate businessman, Mr Joseph Sanhanga, expressed concern over Government’s failure to support the local industry.
“Senior Government officials are stealing our project proposals and this happened to me personally. Government is supposed to merely facilitate an enabling environment for the private sector,” said Mr Sanhanga
In response, Cde Chinamasa said Government was supposed to be hands on in strategic national interest projects such as development of power, railway and road networks and mineral extraction.
“I have heard your concerns and agree that Government should not be in the business of competing with the private sector for business.
Yes, we will take strategic industry like infrastructure development of power, railways and road networks and major foreign currency earners in the mining sector.
Anything considered strategic with heavy capital and considered as an enabler at macroeconomic level Government will be there,” he said
He, however, advised businesspeople not to submit project proposals to Government, but to submit proposals that just underline challenges that need Government to address at policy level.
“I strongly want to encourage you (the private sector) not to worry too much about the past. We are not going to change the past, but should draw lessons from it.
Both Government and the private sector have made mistakes, but let us look forward optimistically, given the positive strides being made to resuscitate the manufacturing sector and rebuild the country’s investment portfolio,” he said.
Cde Chinamasa said Manicaland had the potential to contribute meaningfully to the sustainable development of the country.
He said in his 2017 national budget, the focus was on improving production in all sectors to get back the economy on a growth trajectory.
“Without production there will be no growth and no economy. I agree that our economic problems started after we dared to repossess the land under the Agrarian Land Reform Progamme.
Yes, it has its flaws, but it was a necessary scheme. We are also improving gradually on our mistakes as Government. The problem is people want miracle solutions, but reality is that we will take a bit of time to recover,” said Cde Chinamasa.
He said production would be improved by enhancing fiscal linkages between farmers and manufacturers. On concerns of foreign exchange control, Cde Chinamasa, said it was inevitable that the country would move away from being an over-liberalised foreign exchange market to a managed one given the concerns on externalisation of foreign currency by some individuals.
CZI Manicaland chairman, Mr Richard Chiwandire, underscored the need for Government to be consistent on policies to protect local and international investments.
“The last capacity utilisation survey that was conducted by CZI shows that Manicaland industry’s average capacity utilisation is 33 percent, while the national average is 47 percent.
Although there are some success stories and a lot of strides that have been made by Government to assist industry, for most companies the situation is still very bad and it calls for transformational changes in order to reverse the negative trends,” said Mr Chiwandire, as he implored the Finance Minister to support the new soap and cooking oil plant in Mutare, Willowton, and other local companies that have been able to resuscitate operations.
Minister of State for Manicaland Provincial Affairs, Cde Mandi Chimene, called for increased security at border posts to control the soaring rate of smuggling of cheap imports.
“It is an understatement to say we have porous borders. There is no border at all at Forbes Border Post. There is a lot of revenue now being misdirected to individuals at the border post,” she said.
She recommended for a reasonable special duty to be charged on second hand clothes that continue to be smuggled into the country.
“The trade in second hand clothes is growing. There is need to put reasonable duty like $50 or so for a bale and get the little revenue from the trade rather than lose out completely as currently is the scenario,” she said.
