Government will soon ban unprocessed granite exports as
part of efforts to enhance foreign currency generation.
This was said by President Mnangagwa yesterday after
touring Southern Granites (PVT) Ltd in Chitungwiza.
The company is into processing of granite and the President
said he was impressed by its operations.
“This has been an eye-opener. I am told that this factory
has been in existence for quite some time, but all that I knew was our rocks
were being extracted and depleted in Mutoko and sent in big blocks to Beira on
their way to Europe,” he said.
“The information was that we did not have capacity nor the
technology to process these rocks to become finished products. Now that we have
the technology I have instructed the Minister of Industry and Commerce
(Mangaliso Ndlovu) to craft a Statutory Instrument to ban the exportation of
raw blocks. We need to value add.
“The difference is that a raw block ( at least 2,5 tonnes),
if exported, will fetch us about US$4,5 million and if value addition and
beneficiation is carried out we earn US$12,9 million. So, any reasonable person
will go for beneficiation and this is the way to go in our industrialisation
and modernisation of our industries. We have no choice, we must do that and we
have to support companies of this nature. Let me say to our companies that
beneficiate, you will have full support of Government.”
He said Minister Ndlovu would sit with entities exporting
raw granite so that they come up with an agreed time frame to stop such exports.
President Mnangagwa also bemoaned the classification of the
company as a mining entity saying this exposed it to taxes and penalties that it
is not supposed to pay.
“This is a factory, a manufacturing plant not a mining
entity at all. But it is classified as a mining entity and then the penalties
and taxes are different. We should promote beneficiation. I have directed the
minister (Minister Ndlovu) that he must remove this company from being a mining
company to what it is, which is a manufacturing company,” President Mnangagwa
said.
Earlier the President had said the operations of the
company were in sync with Government policy.
“This is in line with the pursuit of the Second Republic to
accelerate the modernisation, industrialisation and inclusive economic growth.
I am informed that the plant expansion, focuses on improving existing
production processes in keeping with modern manufacturing trends, which are
cost effective as well as high on quality and output,” President Mnangagwa
said.
He urged companies to prioritise value addition.“Concerted efforts should be made for our primary
industries to be established as the bedrock of value addition and
beneficiation,” he said.
“It is costly and a loss to export our products in raw
form; with the right human capital, machinery, right business mind sets and
concerted efforts our industrialisation and modernisation agenda, will fast be
realised.”
The President also called on companied involved in the
extraction of granite to carry out their operations in an environmentally
friendly manner and empower local communities.
Granite is mainly extracted in Mutoko and Mt Darwin. Herald
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