Cabinet considered the update on Sundry Initiatives towards a US$12 billion Mining Industry by 2023 as presented by the Minister of Mines and Mining Development, Honourable Wiston Chitando.
The nation is reminded that Cabinet in April 2021 banned
the export of lumpy chrome ores with immediate effect and export of chrome
concentrates effective from July 2022. Chrome mineralization occurs mainly in
two forms namely: lumpy ores which are fed straight into furnaces; and alluvial
ores, like sands, which are upgraded into higher value sands for feeding into
furnaces, commonly referred to as chrome concentrates.
With the technology currently in use on most of the
furnaces in the country, unless the concentrates undergo an agglomeration
process, there is a limit to the extent to which they can be utilised in the
furnaces. The rationale for banning the export of ores and concentrates was for
companies to invest in the requisite facilities to value-add to ferrochrome.
This policy still stands, and companies have started the process of
constructing smelting furnaces. To
enable these companies to raise the necessary capital, Cabinet has approved
recommendations by the Ministry of Mines and Mining Development for the
exemption on the ban of export of chrome ores by the concerned companies, in
order to complete the construction and expansion of furnace and processing
facilities.
Following the boom in the mining sector, Government has
seen it fit to broaden participation of communities in the sector. To that end, Cabinet wishes to advise the
nation that it granted the request by the following traditional leaders to
acquire mining titles in reserved areas for the benefit of their communities:
Tefra Mining Syndicate (Chief Marange); Goromonzi Mining Trust (Three Chiefs
Rusike, Chinamora, Chikwaka); Chinamhora Mining Syndicate (Chief Chinamhora);
Chiwara Mining Syndicate (Chief Chiwara); Bere SP Mining Syndicate (Chief
Bere); and Budiriro Mining Syndicate (Chief Chiweshe). Cabinet further granted
the request by War Veterans for mining
titles.
Cabinet also approved the applications to correct technical
anomalies in some mining syndicates. The following applications to optimize
current operations were also approved: Inglehart Enterprises (Pvt) Ltd Jubilee
Mine); Scarfbrook Services (Pvt Ltd); Dorcas Mining Syndicate; Moral Capital
Zimbabwe (Pvt Ltd); Exodus and Company; and Premier Portland Cement, Zimbabwe.
Cabinet approved a proposal through which part of the
Mashava Reservations held by the Ministry of Mines and Mining Development will
be allocated to eleven syndicates. These syndicates will be from each of the
eight administrative districts of Masvingo Province with three other syndicates
being solely for youth, war veterans and women to supply chrome ores to
Zimbabwe Zhongxin Smelting Company (ZZSC). The company is a new ferrochrome
smelting project based in Mashava, Masvingo Province with capacity to generate
about US$88 million and create 200 jobs locally.
STATE OF INDUSTRY BOOKLET
Zimbabwe has achieved remarkable modernisation and
industrialisation milestones under the “Moving the Economy up the Value Chain
and Structural Transformation” pillar of the National Development Strategy 1:
2021-2025, as presented by the Minister of Industry and Commerce, Honourable Dr
Sekai Nzenza, in her State of Industry Report to Cabinet.
Strategies which Government is pursuing to spur industry
and commerce growth include the following: improved access to funding by industry;
implementation of the Local Content Strategy; promoting ease of doing business;
economic empowerment; consumer protection; and the quality assurance programme.
Furthermore, the following strategies have benefited
industry:
Tax rebates;
Granting of Special Economic Zones status;
Introducing the domestic currency;
Support to the plastic industry; and
Provision of land with title deeds to businesses domiciled
in rural areas; and
Going forward, the Industrial Development Corporation of
Zimbabwe (IDCZ) will work closely with innovation hubs and industrial parks to
commercialise value chains in the national interest.
Cabinet is pleased to advise that Zimbabwe’s industrial
sector remains highly diversified comprising 94 sub-sectors, producing about 6
000 products. The sector is also highly integrated with the rest of the
economy, and Government’s concerted measures to support industry, including
macro-economic stability, have resulted in positive performance being recorded
in manufacturing, as follows:
• The contribution of the value of the manufacturing sector
to the country’s total value-added products increased from 15,7 percent in 2019
to 18,4 percent in 2021, and is ranked third after agriculture and mining.
• Manufactured exports have increased in value from US$324
million in 2021 to US$366 million in 2022, with most exported products being
food, manufactured tobacco, textiles and packaging.
• Capacity utilisation increased from 47 percent in 2020 to
66 percent in 2022.
• The volumes of locally produced goods in retail shops
increased from 40 percent in 2017 to 85 percent in 2022.
• In terms of product research, innovation, development and
commercialisation, new commodities are now being locally produced on a
commercial basis, such as tick grease for cattle (Contratik); grain protectants
(Chamboko and Chikwapuro); cough syrup; water treatment chemicals; Covid-19
personal protective equipment (sanitisers, surgical masks, swabs, aprons, and
tyvek suits); oxygen; and agricultural lime.
The manufacturing sector’s strong performance has also been
buoyed by significant investments due to the conducive environment for
sustainable private-sector operations created by the Second Republic, which it
continues to enhance under the “Zimbabwe is Open for Business” mantra. Some
significant investments are as follows:
• Varun Beverages plant and equipment expansion in Harare;
• Delta Corporation has invested about US$600 million in
new manufacturing plant and equipment;
• Bakers Inn equipment expansion in Bulawayo;
• Kefalos dairy processing plant commissioned in Mhondoro;
• The Mega Market milling plant commissioned in Mutare;
• US$5,9 million investment in plant and machinery by Bata
Shoe Company in the Midlands Province;
• US$11 million investment in plant upgrade by Sable
Chemicals in Kwekwe; and
• Pretoria Portland Cement’s Colleen Bawn plant in
Matabeleland South Province has a clinker production capacity of 650 metric
tonnes per annum, which translates to one million tonnes of cement per
annum.
Meanwhile, the
commerce sector currently accounts for 60 percent of the industry contribution
to Gross Domestic Product, with e-commerce taking precedence in the retailing
industry. The wholesale and retail sectors have witnessed massive expansion,
notable among which is the establishment of the US$20 million state-of-the-art
Highland Park Shopping Mall in Harare.
The strong performance in the industry and commerce sector
demonstrates that the Second Republic led by His Excellency the President, Cde
ED Mnangagwa, is walking its talk in industrializing and modernizing the
economy as well as economic growth. Cabinet would like to advise that the State
of Industry Booklet detailing performance in the industry and commerce sector
is available for public reference.
CURRENT STATUS OF YOUTH FOCAL DESKS IN GOVERNMENT LINE MINISTRIES
Cabinet received and adopted the Report on the Status of
Youth Focal Desks in Government Line Ministries, as presented by the Minister
of Public Service, Labour and Social Welfare, as Chairman of the Cabinet
Committee on Social Services and Poverty Eradication, Honourable Professor Paul
Mavima.
To date, all line
Ministries have appointed Youth Focal Persons and established Focal Desks at
national and provincial level, as required by section 20 paragraph 1 of the
Constitution. The public is invited to note and exploit the following services
offered by the Desks:
1. Identifying and advertising youth development and
empowerment programmes and opportunities in their respective Ministries;
2. Facilitating youth participation in the planning,
implementation and monitoring of policies, programmes and projects;
3. Preparing sectoral reports and policy briefs;
4. Information and coordination of Ministry staff and youth
desks in other Ministries; and
5. Researching and advising on the relevance and
effectiveness of youth-related Ministry activities.
Cabinet wishes to highlight that the positive results
recorded by the establishment of Youth Focal Desks include the following:
• Youth empowerment opportunities have been availed in the
agriculture, tourism, mining, manufacturing and social services sectors;
• Youths have been involved in and befitted from national
projects spearheaded by Government such as national housing, road
rehabilitation, public works, and land and livestock reform;
• Youths have benefited from Government scholarships,
education, vocational and life skills training; Herald
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