Industrial Development Policy 2012 - 2016.

This Industrial Development Policy is a nation wide sectoral document aiming at (i) enhancing the industrial sector through a full, diversified and dynamic exploitation of the natural resources of the country; and (ii) establishing appropriate industry-related institutional and regulatory frameworks to support the financial mobilization of resources. The overall goal of the Policy - transforming Zimbabwe from a producer of primary goods into a producer of processed value-added goods for both the domestic and export market - is stated in the Vision. The Mission is "To create a vibrant, self-sustaining and competitive economy through promotion of viable industrial and commercial sectors as well as domestic and international trade". Main objectives are (i) restore the manufacturing sector’s contribution to GDP of Zimbabwe to 30% and its contribution to exports to 50%; (ii) create additional employment in the manufacturing sector; (iii) increase capacity utilization to 80%; (iv) re-equip and replace obsolete machinery, substitute new technologies for import and enhance value addition; (v) increase the manufactured exports to African and other countries; (vi) promote utilization of available local raw materials in the production of goods.
The Government has identified 4 priority sectors as the pillars and engine for this IDP 2012–2016, namely 1. Agri-business (food and beverages, clothing and textiles, leather and footwear and wood and furniture); 2. Fertilizer and Chemicals Industry; 3. Pharmaceuticals, and 4. Metals and Electrical.
The following strategies shall be pursued in the fulfillment of the aforementioned objectives (i) (i) establishment of a dedicated financial mechanism through the restructuring of existing institutions dedicated to financing medium and long term recapitalization of industry; (ii) identification of additional lines of credit of a medium to long term to finance the procurement of raw materials, packaging materials, production consumables, laboratory chemicals, spare parts, maintenance of plant and equipment; (iii) revival packages for Distressed Companies; (iv) review the import tariffs structure on the customs duty and VAT on industrial raw materials and packaging to level the playing field for locally produced goods; (v) strengthening of existing institutions to coordinate the modernization of industry’s plant; (vi) improvement of the trade policy to maximize attractiveness of Zimbabwean products in the region and globally; (vii) improvement of the investment climate and the business environment; and (viii) promotion of specialized skill development institutions at strategic locations for the manufacturing industry and services sector.
In order to make agriculture and forestry more productive and sustainable, the Government shall (i) put in place innovative and technically advanced methods of increasing productivity in the whole agriculture value chain; and (ii) support reforestation and value addition of timber.
Rural poverty will be reduced through (i) creation of conditions to bring about improvements in agricultural productivity, rural markets, and rural public services; and (ii) the efforts directed toward promoting market-mediated rural development along with sound macroeconomic management leading to a rapid poverty alleviation and economic growth.
To enable more inclusive and efficient agricultural and food systems, the Policy proposes (i) priority in promoting and supporting Small Micro Medium Enterprises; and (ii) adoption of strategies aiming at facilitating access to markets and to financing facilities.