'Cheap imports choke local firms'

Zimbabwean companies are competing unfairly with regional producers who lower the prices of their products when selling locally in order to attract the US dollar. Datlabs Chemicals technical director Victor Basopo said this during a tour of the Bulawayo-based giant pharmaceutical factory by top government officials led by the Chief Secretary in the Office of the President and Cabinet, Misheck Sibanda.

The delegation comprised permanent secretaries from different ministries who wanted to have an appreciation of how Bulawayo industries were performing and ways they can be assisted. During the tour, companies' representatives expressed concern over unfair pricing competition from regional companies who lower their product price when selling in Zimbabwe.

Basopo said even after the government had increased import tariffs to protect local firms, foreign firms have responded by slashing their prices further thereby squeezing the market and making it difficult for them to export.

"We're getting unfair prices competition from our regional competitors. We appreciate what government is doing to do in trying to reduce the influx of imported goods but we're still having them. For example we've South African Camphor cream, which is cheaper than ours.

After Government imposed a high duty on imported Camphor we thought the South African one was going to be more expensive but it further went down and that doesn't make sense," said Basopo.

He said trading in US dollar could be contributing to the pricing model used by regional countries who lower their prices to attract the American dollar. Basopo appealed to Government to assist them in procuring advanced machinery to aid them in their operations.

"We'll be grateful if the Government could assist us in sourcing funding. The industry is relying on new technology and technology has been changing so we need to upgrade our facilities to be able to match the standard outside. By upgrading of our facilities we'll be able to open up export markets," said Basopo.

The team also visited Arenel, Bulawayo abattoirs among other companies. The permanent secretary in the Ministry of Industry and Commerce Abigail Shonhiwa said Government was committed to assisting local companies as there is a need to create employment for locals.

She said it was clear that some companies were not seeking funding from the government but want a fair operating environment. "We took advantage of the exhibition at Zimbabwe International Trade Fair to come and visit the local companies and see how they're operating. We're being led by Dr Sibanda who is the Chief Secretary in the Office of the President," said Shonhiwa.

"There is discussion that the industry is dead in Bulawayo but we've realised that it's not all gloomy here." Shonhiwa shared the concern that the country's usage of the US dollar was being manipulated by regional companies who lower their prices in Zimbabwe.

"What we've seen is that the industry doesn't entirely need government's assistance. It needs a fair operating environment. We're going to engage our regional partners over unfair pricing models when they sell their products locally," she added.

"Because of the need to attract US$ they lower their prices here but the same product will be more expensive in their countries."