Staff Reporter
Government through the Public Service Commission Pension Fund (PSCPF) and the National Social Security Authority (NSSA) is gearing up to finance the retooling of the local manufacturing industry.
A reliable source within the Ministry of Industry and Commerce has disclosed that this move is aimed at upgrading and replacing outdated machinery and equipment, signalling a significant step towards enhancing productivity and maintaining competitiveness in the dynamic global market.
The source revealed, "The retooling initiative is a strategic move to address the ageing infrastructure within the manufacturing sector. It involves the comprehensive upgrading and replacement of outdated machinery, which is crucial for enhancing efficiency and adaption to changing market dynamics, both domestically and internationally."
The source went further to inform that before the funds are allocated, the MOIC is set to embark on a comprehensive study tour alongside the PSC Fund, NSSA, and the Insurance and Pensions Commission (IPEC) in South Africa this mid-January.
“The objective of the tour is to glean insights into best practices in pension funding from other countries. The Ministry aims to establish robust partnerships with pension funds in Zimbabwe and formulate operational modalities based on international standards,” said the source.
Additionally, the source said that the study tour is a crucial step in understanding how other nations effectively fund their pension systems.
“This exercise will pave way for stronger collaborations between the Ministry and local pension funds," remarked the insider.
The source further indicated that the sector to be financed first has already been identified, “Interestingly, the PSC Fund has already identified the agro-processing sector as a prime target for financing, which the Ministry also considers as a "low-hanging fruit" for revitalization efforts”
Economists have applauded this move by the PSC Fund and NSSA, citing several advantages for the Zimbabwean economy.
Terrence Chapwanya, an economist commented this move saying, "The retooling of the manufacturing sector will undoubtedly boost capacity utilization, leading to increased production and economic growth. This initiative aligns with the nation's Vision 2030, which envisions a vibrant and globally competitive manufacturing sector."
Marian Zuze, another economist added, "This move not only addresses the immediate challenges of outdated machinery but also positions Zimbabwe as a major player in the global market. It sets the stage for sustainable economic development."
The financing of the manufacturing sector by pension funds is expected to play a pivotal role in shaping the future of Zimbabwe's economy, fostering innovation, and ensuring the nation remains resilient in the face of evolving market trends.
