Business / Companies
'Take advantage of rand depreciation,' says RBZ Boss
09 Dec 2015 at 15:56hrs | Views
The Reserve Bank of Zimbabwe has called on local companies to take advantage of the devaluation of the South African rand to import manufacturing machinery and reduce the importation of finished products for the country to be competitive.
The Reserve Bank of Zimbabwe governor Dr John Mangudya said Zimbabwean companies should benefit from the multicurrency regime by utilising all opportunities in business to be competitive on the market.
"There is need to take advantage of the depreciation of the South African rand to import value add machinery at cheap prices in South Africa to reduce our level of imports and become competitive on the market.
"We also need to reduce the cost of doing business to compete with our neighboring countries and use the internal devaluation through reducing labour costs and wages," he said.
He said this during an internal devaluation symposium which was conducted by the Confederation of Zimbabwe Industries meant to look for ways on how businesses can benefit from this multicurrency regime.
"There need to cut our costs at company level to increase production and look for ways to stimulate demand of local products both on the domestic and foreign market.
"As RBZ we are reengaging international banks to unlock new money to bring back new money to the economy through long term loans and this is going to fanilised next year," he said.
He added that the RBZ is working on reducing the cost of doing business and increase confidence of doing business in the country.
"Government must facilities the ease of importing and exporting through reducing time of processing documents to do business," he said.
Currently the Government is modernising our boarders to increase transparency and curb smuggling.
He also added that Zimbabwe needs entrepreneurs and being productive in the market to become competitive.
The Reserve Bank of Zimbabwe governor Dr John Mangudya said Zimbabwean companies should benefit from the multicurrency regime by utilising all opportunities in business to be competitive on the market.
"There is need to take advantage of the depreciation of the South African rand to import value add machinery at cheap prices in South Africa to reduce our level of imports and become competitive on the market.
"We also need to reduce the cost of doing business to compete with our neighboring countries and use the internal devaluation through reducing labour costs and wages," he said.
He said this during an internal devaluation symposium which was conducted by the Confederation of Zimbabwe Industries meant to look for ways on how businesses can benefit from this multicurrency regime.
"There need to cut our costs at company level to increase production and look for ways to stimulate demand of local products both on the domestic and foreign market.
"As RBZ we are reengaging international banks to unlock new money to bring back new money to the economy through long term loans and this is going to fanilised next year," he said.
He added that the RBZ is working on reducing the cost of doing business and increase confidence of doing business in the country.
"Government must facilities the ease of importing and exporting through reducing time of processing documents to do business," he said.
Currently the Government is modernising our boarders to increase transparency and curb smuggling.
He also added that Zimbabwe needs entrepreneurs and being productive in the market to become competitive.
Source - BH24
