Budget must realigning the country's economic landscape - Buy Zimbabwe

Buy Zimbabwe expects that today's announcement in the 2012 Budget by Finance Minister Tendai Biti shall be more performance centered realigning the country's economic landscape with the different sectors of the economy.

In a statement, Buy Zimbabwe said the key issues should be centered on job creation, revamping the manufacturing sector, and promotion of a sustainable and competitive industry especially in the face of the recent developments in South Africa with the signing of the Buy SA Accord.

For the budget to be underpinned on realism and pragmatism it has to responsive to neighboring economies despite the fact that ours is still in a fragile state. This outlines that the country needs to take actions that militate against the subdued approach towards economic development that we have for a long time had.

The major priority of the 2012 budget should be to save jobs in the country. With only 850 000 Zimbabweans in formal employment it is critical that we do not continue to export jobs but create an environment that protects current jobs and creates more jobs. This means that we have to create a vibrant local economy that has local companies that employ locals.

Revamping the manufacturing requires concerted efforts. While raising increased funding should be the starting point, Finance Minister should call on all key stakeholders to lead the process of economic growth by working closely instead of within their silos. This means Confederation of Zimbabwe Industries (C.Z.I), Zimbabwe National Chamber of Commerce (Z.N.C.C), Zimtrade, Zimbabwe Investment Authority (Z.I.A), National Economic Consultative Forum (N.E.C.F), Consumer Council of Zimbabwe (C.C.Z) working together to share best practices. With these institutions pushing a common agenda we should be able to sufficiently contribute to the capitalization of local industry. Already, we have seen will power push capacity utilisation from a modest 43, 7% as at June 30, 2010 to 57, 2% as at June 30, 2011, strategic alliances should be sufficient enough to push this figure significantly higher by this same period next year.

The national budget should also be able to address the demand side for local products and services and the high costs of production that have affected the competitiveness of local brands. The budget should assure the working Zimbabwean increased disposable incomes which will allow people to consume more. High utility cost, primarily Zesa bills require urgent attention. The national budget should make provisions for the Hwange and Kariba Electricity projects as this is the available immediate solution to increase Zesa's capacity and hence reduce load shedding and reduce inhibitive tarrifs.