2021 National Budget: What’s in it for manufacturing sector?

Government is reviewing issuance of import licenses and import duties on both imported raw materials and finished products, with a view of encouraging and incentivising local producers of agro inputs, as well as local manufacturers for local processing.

According to Finance and Economic Development Minister Mthuli Ncube in his 2021 National Budget Statement, the manufacturing sector is expected to grow by 6.5% in 2021.

To achieve this, Government will continue to facilitate access to affordable financing to enable recapitalization of the industry especially SMEs and emerging new competitive industries, he said.

One of the priority areas is going to be on competitiveness and investment attraction, according to Minister Ncube.

The manufacturing sector heavily depends on the doing business environment to attract investment and also improvement in the productivity and formalisation of MSMEs in the sector.

“Therefore, the 2021 Budget will advance the ease of doing business environment as part of the wider reform agenda under the Integrated Results Based Management system underpinned by the Rapid Results Approach.”

Government will also strengthen local agro-processing value chains in agriculture and mining through promoting local production and where possible, incentivising local private sector participation, said Minister Ncube.

“Furthermore, the COVID-19 pandemic has created an opportunity for domesticating value chains, particularly in manufacturing industry. Through appropriate funding models, Government will support small, medium and large enterprises that seek to exploit such opportunities.”

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