Business / Economy
Strong US$ affects Zimbabwe exports
14 Apr 2016 at 06:24hrs | Views
A strong United States currency is adversely affecting Zimbabwean businesses as local products cannot compete in export markets, an expert said on Tuesday.
Lighting products firm Eurolux regional manager Alan Squirrell said this at an exhibition that South African-based event organisers Afritex held in the capital.
The event drew participants from companies in the region involved in electrical, instrumentation, renewable energy and telecommunications.Mr Squirrel said Zimbabwean companies had difficulties remaining competitive since they used the US dollar to import from Europe and China.
"The US dollar does become a factor when we talk about exports. Businesses in Zimbabwe use the currency to bring in parts from China and Europe for assembling which naturally raises their costs of production especially compared to South Africa at the moment," he said.
He said the Expo provided an opportunity for companies to introduce themselves to new markets and rid themselves of negative perceptions.
"When we were organising the event, some exhibitors were saying there is not a lot of business in Zimbabwe, which is not the way to look at business," he said.
"Afritex gives a chance for those in the industry to expand and reach different markets," he said.
Mr Squirrel added: "This initiative gives new companies a platform to find people that would represent their business and market their products in Zimbabwe."
Electro Mechanica sales representative Maven Taripira said local business had suffered due to company closures in the manufacturing sector.
"Since industry has been closing down in the past two years, we are feeling the pinch as we rely on offsite companies from China, Europe and South Africa for key implements," he said.
Mr Taripira noted that Government initiatives such as the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim- Asset) had a positive impact on the local industry.
Afritex will be staging fifteen Technical Expos in eight African countries this year namely Botswana, Zambia, Zimbabwe (in Harare and Bulawayo), Malawi, Tanzania, Kenya, Swaziland.
Lighting products firm Eurolux regional manager Alan Squirrell said this at an exhibition that South African-based event organisers Afritex held in the capital.
The event drew participants from companies in the region involved in electrical, instrumentation, renewable energy and telecommunications.Mr Squirrel said Zimbabwean companies had difficulties remaining competitive since they used the US dollar to import from Europe and China.
"The US dollar does become a factor when we talk about exports. Businesses in Zimbabwe use the currency to bring in parts from China and Europe for assembling which naturally raises their costs of production especially compared to South Africa at the moment," he said.
He said the Expo provided an opportunity for companies to introduce themselves to new markets and rid themselves of negative perceptions.
"When we were organising the event, some exhibitors were saying there is not a lot of business in Zimbabwe, which is not the way to look at business," he said.
Mr Squirrel added: "This initiative gives new companies a platform to find people that would represent their business and market their products in Zimbabwe."
Electro Mechanica sales representative Maven Taripira said local business had suffered due to company closures in the manufacturing sector.
"Since industry has been closing down in the past two years, we are feeling the pinch as we rely on offsite companies from China, Europe and South Africa for key implements," he said.
Mr Taripira noted that Government initiatives such as the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim- Asset) had a positive impact on the local industry.
Afritex will be staging fifteen Technical Expos in eight African countries this year namely Botswana, Zambia, Zimbabwe (in Harare and Bulawayo), Malawi, Tanzania, Kenya, Swaziland.
Source - New Ziana.
