Business / Economy
'Zimbabwean companies should focus on increasing trade'
28 Apr 2016 at 06:56hrs | Views
INDUSTRY and Commerce Minister Mike Bimha says Zimbabwean companies should focus on increasing trade as a strategy to achieve economic growth.
Increased trade through export earnings is the hallmark of a successful economy, said the minister in his address during the International Business Conference at the Zimbabwe International Trade Fair (ZITF) in Bulawayo.
Experts have pointed to negative trade of up to $3 billion between Zimbabwe and its regional neighbours as an indicator of a weakness in the economy.
The trend has mainly been fuelled by an influx of cheap imports on the back of the strengthening US$, low domestic industry capacity utilisation and a lack of funding for recapitalisation.
Bimha said increased trade was part of the broader Sadc regional economic vision, which has been ratified by member states under the Industrialisation Strategy and Road Map aimed at benefiting Africa through exporting finished products.
"At the Sadc meeting in Victoria Falls that was the first time that Sadc agreed that rather than talk about opening our markets, talk about increasing trade. Industry should be more of how to make goods so that we can trade," said Bimha.
"Our President (Robert Mugabe) single handedly steered the conversation so that all Heads of States agreed that we must have a special session on Industrialisation and Road Map. Industrial strategy isn't just now the focus of Sadc but it's also the focus for Comesa and also for the continent leading into Agenda 2063."
For years to come, Minister Bimha said, industrialisation would remain the focus for Zimbabwe and Africa at large.
In line with the Africa Union agenda 2063, he said, the Industrialisation Strategy and Road Map is aimed at moving to beneficiation so that the continent benefits from exporting finished products.
He said despite a myriad of challenges that continue to hamper industrialisation efforts, some companies in sectors such as cement manufacturing, oil expressing and food and beverages were doing relatively well.
Bimha also noted the leading role played by the public sector in creating a conducive environment for business.
"In this regard, the government has put in place measures to stimulate production. Zimbabwe's sustainable industrialisation will rely on our ability to embrace technology," he said.
Increased trade through export earnings is the hallmark of a successful economy, said the minister in his address during the International Business Conference at the Zimbabwe International Trade Fair (ZITF) in Bulawayo.
Experts have pointed to negative trade of up to $3 billion between Zimbabwe and its regional neighbours as an indicator of a weakness in the economy.
The trend has mainly been fuelled by an influx of cheap imports on the back of the strengthening US$, low domestic industry capacity utilisation and a lack of funding for recapitalisation.
Bimha said increased trade was part of the broader Sadc regional economic vision, which has been ratified by member states under the Industrialisation Strategy and Road Map aimed at benefiting Africa through exporting finished products.
"At the Sadc meeting in Victoria Falls that was the first time that Sadc agreed that rather than talk about opening our markets, talk about increasing trade. Industry should be more of how to make goods so that we can trade," said Bimha.
For years to come, Minister Bimha said, industrialisation would remain the focus for Zimbabwe and Africa at large.
In line with the Africa Union agenda 2063, he said, the Industrialisation Strategy and Road Map is aimed at moving to beneficiation so that the continent benefits from exporting finished products.
He said despite a myriad of challenges that continue to hamper industrialisation efforts, some companies in sectors such as cement manufacturing, oil expressing and food and beverages were doing relatively well.
Bimha also noted the leading role played by the public sector in creating a conducive environment for business.
"In this regard, the government has put in place measures to stimulate production. Zimbabwe's sustainable industrialisation will rely on our ability to embrace technology," he said.
Source - chronicle
