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Pamela Shumba, Senior Reporter
INDUSTRIALISATION is key to the successful implementation of the Transitional Stabilisation Programme (TSP), a critical component of achieving the country’s vision to become an upper middle-income economy by 2030, MPs have said.

In its post 2019 budget report, the Parliamentary Portfolio Committee on Industry and Commerce said industrialisation would result in economic transformation.

“Industrialisation lies at the heart of our vision of becoming an upper middle-income economy by 2030.

It is through industrialisation that we can effectively exploit the backward and forward linkages that primarily exist among the agricultural, mining and manufacturing sectors, thus bringing to reality the structural transformation that this economy desperately needs.

“The budget is coming in as the first budget under the new dispensation and paving way for implementation of the TSP, which is a critical component of the road map of achieving Vision 2030. The 2019 Budget comes against the background of a sustained fiscal and current account deficit, the twin evils, emanating mainly from fiscal indiscipline,” said acting committee chairperson Cde Farai Musikavanhu while presenting the committee’s report last week.

The report said it is important for Government to diligently create a conducive environment for private sector-led industrialisation through requisite policies, incentives and improvement in the ease of doing business.

It said the Ministry of Industry and Commerce was allocated $47 million in the 2019 budget, which is a 119 percent change from the 2018 budget figure of $21 million.

MPs, however, expressed concern over the $27.5 million allocated to the industrialisation programme, saying it was only nine percent of the expected amount, which will make it difficult for the Ministry to fulfil its industrialisation mandate.

“Unfortunately, only $30 million was allocated to the IDC while allocations for SEZs seems to have been included in the blanket figure of $41.8m given to the Zimbabwe Investment and Development Agency (ZIDA) under the Office of the President and Cabinet (OPC) vote,” reads the report.

“The major items were $102 million for industrial retooling/venture capital under the Industrial Development Corporation (IDC) and $200 million earmarked for Special Economic Zones (SEZs) Infrastructure.”

It said the roles to be played by the Ministry of Industry and Commerce and ZIDA must be clearly defined to avoid duplication of duties and disharmony while promoting accountability and efficiency to improve the ease of doing business.

The report also said there is a need for rationalisation of the operations of the Industry Ministry and the Ministry of Foreign Affairs and International Trade to reduce overlaps while promoting complementarities.

It said the producer price of wheat must be announced to facilitate timely planning in the grain milling industry, noting that indications are that farmers want a producer price of US$710 per metric tonne whilst millers would prefer a price of US$310 per metric tonne to maintain bread prices at the current levels.

“This definitely points to the need for a subsidy and the matter needs urgent attention as the festive season approaches,” reads the report.

—@pamelashumba1