EDITORIAL COMMENT: Resuscitation of companies plausible

19 May, 2023 - 00:05 0 Views
EDITORIAL COMMENT: Resuscitation of companies plausible The coming back to life of companies like Quest Motors means more production and increased contribution to Manicaland GDP

The ManicaPost

 

THREE of the oldest strategic companies in Manicaland – Dorowa Minerals, Quest Motors and Katiyo Estates– are gradually putting in place the building blocks to revive their bread-and-butter businesses.

The formerly distressed companies are reinventing the wheel following their resuscitation by the Second Republic.

 

Their resuscitation has firmly put the province on course to improve its Gross Domestic Product (GDP) and the per capita.

The province’s GDP currently sits at US$1,46 billion, a six percent contribution to the national revenue, while its GDP per capita is US$743, the least in the country.

 

GDP is the final value of goods and services produced within the geographic boundaries of a given area during a year, and is widely viewed as a key indicator of its economic performance.

 

Per capita GDP is a metric that breaks down an area’s economic output per person.

Their turnaround strategies include the realisation of the problem; redefining their strategies, re-engage people, innovation, branding and marketing, finance and cash flow and execution and tough decisions.

 

The intervention by Government has put Quest Motors on a strong rebound predicated on the National Development Strategy (NDS1) which prioritises promotion of the domestic automobile industry.

Cabinet Circular Number 16 of 2021, issued by the Office of the President and Cabinet (OPC), compels Government ministries, departments and State institutions to buy 80 percent of vehicles from local producers to aid their recovery and growth.

It is our fervent and sincere hope that with the revival of Quest Motors – which is Mutare’s only car and passenger vehicle manufacturer, known for assembling Chinese models like Foton, JMC, Chery Tiggo, Yutong buses and Japanese Mitsubishi, this policy will be implemented to the fullest.

Government and related entities must stop importing vehicles that can be easily purchased locally.

 

The resuscitation of Quest Motors also entails an increase in local production of buses and delivery trucks, which will benefit upstream industries that produce inputs such as bolts, batteries, steel sheets, tyres, upholstery, paints and carpets.

This will help drive domestic industrial recovery and growth, and as the market for new vehicles grows it would create a pool of second-hand cars and ultimately eliminate their importation predominantly from Japan.

Quest has capacity to produce 1 000 units per month, which transcends to over 10 000 units annually, and there is therefore need for an intrinsic mechanism to ensure that locals can afford the new vehicles to create sustainable demand that will drive growth of our automotive industry.

Government must also be applauded for availing part of the US$16 million to revamp Dorowa Minerals plant in Buhera in a strategic move that will boost the production of basal fertiliser for both local and export markets.

The ultimate goal is to upgrade itinto an all-in-one fertiliser plant, an initiative that fits perfectly into the Second Republic’s devolution thrust — where resources in a particular region must be value-added in-situ to boost the locality’s GDP.

Currently, phosphate produced at Dorowa is processed into basal fertiliser at Zimphos in Harare, thereby helping to boost the city’s GDP.

The phosphate plant at Dorowa was established in 1965, and the last refurbishment was done in 1973, about 50 years ago.

The refurbishment of the plant will more than double phosphate production from the current 45 000 tonnes to 100 000t per year, adequate to produce 300 000t of basal fertiliser, which is 75 percent of the national demand.

This will ultimate goal is to stop importation of basal fertiliser.

At Katiyo, US$10 million has been injected to increase avocado and macadamia production with 220ha are already under macadamia while 130ha are under avocados.

 

This has created 300 jobs for locals with potential to double it in future.

This critical interventions shows that under the astute and servant leadership of President Mnangagwa, Government has been seized with economic development anchored on the transformative development agenda, the NDS1.

The coming back to life of these companies means more production and increased contribution to Manicaland GDP.

It also means more employment opportunities, and surely Zimbabwe is in safe hands under President Mnangagwa.

 

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