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Govt urged to adopt value chain approach to address price hikes

16 Jan, 2018 - 13:01 0 Views
Govt urged to adopt value chain approach to address price hikes Denford Mutashu

eBusiness Weekly

HARARE – The Government should implement recommendations of the Confederation of Zimbabwe Industries on the value -chain approach as a way to develop the economy and tackle price hikes  that have gripped the country since November last year as it identifies  gaps in the different sectors, an expert said on Monday.

A value chain is the process or a set of activities that lead to the  production of a final product. Studies carried out in various sectors of the economy and regionally  show that, for instance, primary producers could realize more for their  raw materials if they follow through the value chain and sell value  added products.

In an interview, Confederation of Zimbabwe Retailers President Denford  Mutashu said the price hikes which began in November last year could be  tackled through the value chain approach.

“The value chain approach which was recommended to the Ministry of  Industry and Commerce and Enterprise Development is one of the solutions  as it identifies the gaps,” he said.

The CZI in March 2016 produced a booklet titled: “Value Chains Mapping  – Mapping of Value Chains in Zimbabwe for Economic Development”, which  it expected to assist policy makers in crafting policies that were  relevant to every segment of the economy.

The booklet, which was handed over to then Industry and Commerce  Minister Mike Bimha, identified opportunities and gaps in 18 value  chains as the private sector sought to drive the industrialization  strategy.

Presenting the booklet to Bimha, then CZI president Busisa Moyo said  the value chains study was in line with Africa’s vision to industrialize  and in line with the country’s Zimbabwe Agenda for Sustainable  Socio-Economic Transformation, the Ten-Point Plan and the Sustainable  Development Goals.

“These value chains are only the beginning. It is not an exhaustive list but it is the first edition in terms of  value chains that we have identified,” said Moyo.

“We believe that if we are to industrialize and develop as a nation we  need to take a value chain or cluster approach and this book summarizes. 18 value chains that we have identified. The essence or the underpinning  principle of these value chains is that some of our value chains are  broken. There are missing pieces to the value chains,” he said.

The value chains that the CZI identified include the  asbestos-to-roofing/piping-to-construction materials;  diamond-to-jewellery-to-ornament; gold-to-jewellery-ornament; chrome  ore-to-chromium-to-fabricated steel product; iron  ore-to-billet-to-foundry-to-fabricated steel product;  limestone-to-quarry-to-cement-to-construction; coal bed  methane-to-gas-to-plastics and allied value chain.

Other value chains include cotton-to-clothing; soya-to-white-meats  (incorporating stock-feeds for the beef industry); tobacco-to-cigarette;  maize-to-maize meal (incorporating stock-feeds for the beef industry);  beef-to-milk-to-leather; horticulture production-to-can/packet/bottle;  regional – assembly-finishing value chains (including automotives,  plastics, paper and ICT) and pharmaceuticals- pharmacy-hospital- patient  value chain, among others. – New Ziana

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