Business / Economy
World Bank urges Zim to reduce trade restrictions
05 Mar 2014 at 15:20hrs | Views
The World Bank has urged Zimbabwean authorities to reduce trade restrictions in order to improve on its trade performance after a research found the country's exports to have drastically declined by 54 percent between 2007 and 2009.
The international financier's remarks are contained in the study: "Opportunities and constraints for stronger regional and global integration of Zimbabwe" that was launched in Harare yesterday.
However, in response to the World Bank report findings, director in the Ministry of Industry and Commerce Stansilus Magoma said although there was a need to intervene on the findings, he clarified that Zimbabwe's trade restrictions do not apply to the whole system but to specific sectors that have competitive advantage.
"On a global context, Zimbabwe is considered a small country and has no real influence and input in world trade regulations, because of this the Government protects sectors they feel will be affected by free trade therefore restrictions do not apply to the whole trade sector but a few selected sub-sectors," said Mangoma.
The report also noted, for example, that Zimbabwe fertilizer costs are too high compared to other countries in the region. In response to this finding Mangoma said the low prices in other countries is a result of government subsidies in those countries hence their price is lower compared to the local price.
The international financier's remarks are contained in the study: "Opportunities and constraints for stronger regional and global integration of Zimbabwe" that was launched in Harare yesterday.
However, in response to the World Bank report findings, director in the Ministry of Industry and Commerce Stansilus Magoma said although there was a need to intervene on the findings, he clarified that Zimbabwe's trade restrictions do not apply to the whole system but to specific sectors that have competitive advantage.
"On a global context, Zimbabwe is considered a small country and has no real influence and input in world trade regulations, because of this the Government protects sectors they feel will be affected by free trade therefore restrictions do not apply to the whole trade sector but a few selected sub-sectors," said Mangoma.
The report also noted, for example, that Zimbabwe fertilizer costs are too high compared to other countries in the region. In response to this finding Mangoma said the low prices in other countries is a result of government subsidies in those countries hence their price is lower compared to the local price.
Source - bh24
