Business / Economy
Reduce imports, Zim govt told
06 Oct 2014 at 07:51hrs | Views
ZIMBABWE - THE country could save more than $2 billion dollars per annum if it reduces imports by 40 percent, a special advisory committee set up by government has said.
The committee was set up this year to look into the problem of imports and smuggled goods into Zimbabwe and the impact this has had on local industry.
It was also tasked to assess the capacity of industry to supply the market, industry's competitiveness and recommend appropriate action government should take.
According to Finance and Economic Development Minister Patrick Chinamasa's midterm policy review statement, imports for the first half of the year were down on last year, but relatively remain high at $3 billion. Corresponding imports for last year were $3,9 billion.
Acting chairperson of the imports advisory committee made up of experts from the private sector, Masimba Marangwanda, handed over the report of their findings to Industry and Commerce Minister Mike Bimha.
Minister Bimha also received the report of a similar special private sector committee tasked to look into Zimbabwe's ease and cost of doing business, which have seen the country performing poorly on global rankings.
Marangwanda said his committee came up with recommendations on industries that could have quick turnaround periods if imports are reduced. He also said that the committee had identified industries that could be nursed back to viability within a period of two to three years through import substitution.
As such, sectors identified as having low hanging fruits or potential to turnaround in the short to medium term if imports were reduced included the food, dairy, grain millers, pharmaceuticals, motor and oil industries.
"We also believe that we can save up to $2 billion through import substitution, the subsequent effect of local value addition and money multiplier effect," he said.
He added that the savings could be channeled towards improving capacity of local industry, which has fallen to 39,6 percent from 44,5 percent in 2013.
Zimbabwe was ranked 170 out of 180 countries on the World Bank's 2014 ease of doing business rankings, having slipped two notches down from 168 in 2013.
The committee was set up this year to look into the problem of imports and smuggled goods into Zimbabwe and the impact this has had on local industry.
It was also tasked to assess the capacity of industry to supply the market, industry's competitiveness and recommend appropriate action government should take.
According to Finance and Economic Development Minister Patrick Chinamasa's midterm policy review statement, imports for the first half of the year were down on last year, but relatively remain high at $3 billion. Corresponding imports for last year were $3,9 billion.
Acting chairperson of the imports advisory committee made up of experts from the private sector, Masimba Marangwanda, handed over the report of their findings to Industry and Commerce Minister Mike Bimha.
Minister Bimha also received the report of a similar special private sector committee tasked to look into Zimbabwe's ease and cost of doing business, which have seen the country performing poorly on global rankings.
Marangwanda said his committee came up with recommendations on industries that could have quick turnaround periods if imports are reduced. He also said that the committee had identified industries that could be nursed back to viability within a period of two to three years through import substitution.
As such, sectors identified as having low hanging fruits or potential to turnaround in the short to medium term if imports were reduced included the food, dairy, grain millers, pharmaceuticals, motor and oil industries.
"We also believe that we can save up to $2 billion through import substitution, the subsequent effect of local value addition and money multiplier effect," he said.
He added that the savings could be channeled towards improving capacity of local industry, which has fallen to 39,6 percent from 44,5 percent in 2013.
Zimbabwe was ranked 170 out of 180 countries on the World Bank's 2014 ease of doing business rankings, having slipped two notches down from 168 in 2013.
Source - Herald
