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Zimbabwe's competitiveness has dropped by 50%, says Mthuli Ncube

by Staff reporter
11 Sep 2015 at 06:12hrs | Views

Professor of Public Policy at Blavatnik School of Government, University of Oxford Mthuli Ncube told an IMF meeting in Harare that Zimbabwe's competitiveness has dropped by 50% due to the US dollar, which was adopted in 2009 following a hyperinflation period. as production costs remain high.
"Currency competitiveness is a key factor in any economy hence Zimbabwe has lost 50% in terms of competitiveness due to the use of the US dollar," he said.
Ncube said companies in South Africa and Zambia using their currencies - the rand and kwacha - respectively will always have a competitive advantage over Zimbabwean companies which has high production costs.
Ncube said despite the dollar bringing stability and having dealt with the hyperinflation, the country will not have flexibility on monetary reforms.

"There is need to put a robust reform agenda that will drive productivity until a time the country is able to re-introduce own currency," he said.

Source - online