AI, Value Addition Key to Zimbabwe’s Export-Led Growth, Experts Say

Local companies have been urged to embrace artificial intelligence and adopt value addition strategies if the country is to become globally competitive and grow its economy.

This came out during the second edition of the POSB Exporters Seminar held in Harare recently.

The National Competitiveness Commission, chief executive officer Phillip Phiri stressed the urgent need for local industries to invest in human capital and technology to keep pace with global developments.

“Artificial intelligence is revolutionising the world today. If you are not in that space or grabbing towards that space, you will be left behind. You need to start developing even skills within your own people… develop their skills so they can become an asset in terms of you being competitive,” Phiri said

Phiri urged large corporations to lead the charge in diversifying operations and focusing on value addition, particularly in sectors like mining and agriculture.

“There is need for big companies [to] start diversifying and looking at mine-to-factory models… somebody needs to be thinking, ‘I need to diversify and put up a lithium processing plant’ because that is where technology is going,” he said.

He highlighted tobacco as another example, noting the country could quintuple its earnings from the crop through value addition.

“Tobacco exports are hitting $1 billion per annum… but studies have shown that we can earn $5 billion if we value it. Tobacco can be used in pharmaceuticals… even to make insulin,” he said.

Reserve Bank of Zimbabwe (RBZ) deputy director for exports and diaspora remittances Dennis Chirata highlighted the critical role of exporters in sustaining the economy.

“Whether you are exporting the raw materials or the high-end product, the framework is the same. In a multi-currency environment, the central bank does not generate foreign currency… liquidity comes from those generating it. We make sure we don’t ignore any sentiment,” Chirata said.

Stakeholders at the seminar agreed that export growth driven by innovation and value addition, could significantly boost the country’s GDP and push the country closer to achieving upper middle-income status.