News / Local
Importation ban to create more jobs- Mnangagwa
26 Apr 2017 at 10:24hrs | Views
Vice President Emmerson Mnangagwa has praised the controversial Statutory Instrument (S1) 64, which restricted the importation of certain products in an ambitious drive to promote local industries saying it has reduced the import bill and has scope to create more jobs.
Last year in June, government promulgated the controversial Statutory Instrument (S1) 64.
It said those who wanted to import the products had to secure a permit, which costs $30 and valid for three months, but after satisfying authorities why the products should be brought into the country.
The unannounced implementation of the order caused chaos at the Beitbridge border post and led to a series of deadly riots on the South African and Zimbabwe sides of the border as anger swelled within the business community and importers.
The riots forced the government to close the border post for the first time since it was opened in 1929.
Addressing guests at the 11th international business conference at the Zimbabwe International Trade Fair (ZITF) Mnangagwa said the local manufacturing sector has responded 'well to the statutory instrument'.
He said more people will be employed in factories.
"Government has come up with various measures aimed at revitilising the economy including the manufacturing sector whose performance had been significantly affected by an influx of cheap imports.
"The promulgation of statutory instrument 64 by government offers companies immerse opportunity to re-tool and modernize and be able to manufacture products that where previously imported.
"Since the enactment of this statutory instrument the country's import bill has been coming down with imports having been reduced from a high of $6,3 billion in 2015 to $5,2 billion in 2016 which is a realisation of $1,1 billion in import savings" he said.
He said he is encouraged by the response of local manufacturers to the statutory instrument.
He said the capacity utilisation rose from 34.3% in 2015 to 47,4% in 2016.
Mnangagwa said the number of people employed in industries will increase due to the statutory instrument impact.
Last year in June, government promulgated the controversial Statutory Instrument (S1) 64.
It said those who wanted to import the products had to secure a permit, which costs $30 and valid for three months, but after satisfying authorities why the products should be brought into the country.
The unannounced implementation of the order caused chaos at the Beitbridge border post and led to a series of deadly riots on the South African and Zimbabwe sides of the border as anger swelled within the business community and importers.
The riots forced the government to close the border post for the first time since it was opened in 1929.
Addressing guests at the 11th international business conference at the Zimbabwe International Trade Fair (ZITF) Mnangagwa said the local manufacturing sector has responded 'well to the statutory instrument'.
He said more people will be employed in factories.
"Government has come up with various measures aimed at revitilising the economy including the manufacturing sector whose performance had been significantly affected by an influx of cheap imports.
"The promulgation of statutory instrument 64 by government offers companies immerse opportunity to re-tool and modernize and be able to manufacture products that where previously imported.
"Since the enactment of this statutory instrument the country's import bill has been coming down with imports having been reduced from a high of $6,3 billion in 2015 to $5,2 billion in 2016 which is a realisation of $1,1 billion in import savings" he said.
He said he is encouraged by the response of local manufacturers to the statutory instrument.
He said the capacity utilisation rose from 34.3% in 2015 to 47,4% in 2016.
Mnangagwa said the number of people employed in industries will increase due to the statutory instrument impact.
Source - Byo24News
