The Sunday News
Mesabe Ncube
THE country’s dependence on undiversified primary commodities is one of the major challenges to the economy, as most goods are still being exported without or with minimal beneficiation, prejudicing the country of potential revenue.Speaking at the annual Institute of People Management of Zimbabwe labour briefing in Bulawayo on Friday, the director of the Labour and Economic Development Research Institute of Zimbabwe, Dr Godfrey Kanyenze, said the country needed to diversify and beneficiate primary commodities as this would drive exports and create more job opportunities.
Dr Kanyenze said although on surface export figures looked appetising the country could have earned more if it had beneficiated its products especially in the mining sector.
He said out of the export receipts of $14,1 billion between January 2009 and September 2013, $9,2 billion, translating to about 65,2 percent emanated from the mining sector, with agriculture, horticulture and hunting contributing $4 billion, about 28,3 percent and the manufacturing sector contributing the balance of $0,9 billion, which is about 6,4 percent.
He also said the growth in the manufacturing sector appeared more dependent on the internal demand generated by agriculture and mining, hence the need for conducive policies.
“Stronger policies in the mining and agricultural sector will ultimately have positive downstream effects on the manufacturing sector, and on services,” he said.
Talking about how the challenges experienced by the primary industry could be addressed, Dr Kanyenze said the country should establish resource linkages.
“The potential of the capital-intensive sectors such as mining can be maximised through building resource linkages with the rest of the economy comprising revenue linkages,” he said.
Linkages can refer to inputs and outputs into the mining operation, or relationships between enterprises in the supply chain.
Addressing the same gathering the deputy Minister of Public Service, Labour and Social Welfare, Cde Tongai Muzenda said Government was engaging various stakeholders and social partners to create flexibility in the labour market.
“We are engaging much with business representatives through Employers’ Confederation of Zimbabwe and workers through the Zimbabwe Congress of Trade Unions and sometimes the Zimbabwe Federation of Trade Unions,” he said adding that there might be disagreements but they were making headway.
Cde Muzenda said his ministry had already submitted recommendations for the harmonisation of labour laws and stakeholders should expect the bill by February next year.
