GOVERNMENT is confident that the adoption of a local
currency by the country’s monetary authorities has the potential to spur
industrial growth to 60 percent and boost the country’s exports.
This was revealed by Industry and Commerce Minister
Mangaliso Ndlovu while addressing a breakfast meeting on the state of the
industry and commercial sector in Harare yesterday.
Minister Ndlovu said Zimbabwe’s industrial and
manufacturing sector capacity utilisation needs to be at least on 60 percent
with anything less than that being a sign that there are a lot of
inefficiencies, which have a negative bearing on product pricing and
competitiveness.
According to the Confederation of Zimbabwe Industries
manufacturing sector survey of 2018, last year’s capacity utilisation was the
best over the last five years as industry operated at 48 percent but outlook
had predicted a drop to 34,3 percent before Government’s intervention.
In line with the Transitional Stabilisation Program of
fostering a private sector-led economic revival, Government early this month
promulgated (SI) 142 of 2019, also known as Reserve Bank of Zimbabwe (Legal
Tender) Regulations, which scrapped the multi-currency and introduced the
Zimbabwe dollar.
“We had a number of policy interventions, some well-planned
(and) mostly influenced by the input from private sector, some well-planned as
well but abruptly implemented because that’s what had to be done,” said
Minister Ndlovu.
“When you are to make changes to currency related issues
you don’t give people time particularly Zimbabweans.
“I have no doubt that the local currency is what we needed
now particularly for the purposes of improving our competitiveness as we
venture into the export market.
“I believe this is the right time for this Government to
discuss how best to exploit export opportunities.
“We should focus on export-led industrialisation, we want
to anchor and take advantage of African Continental Free Trade Area.
“I know there is a bit of nervousness when it comes to this
(free trade) but we need to prepare ourselves as a nation for that.”
Growing exports is one of the key anchors with which
Government seeks to revive the economy and commits itself to “support for
competitiveness of domestically produced goods in both regional and
international markets”.
The private sector is grappling with a myriad of challenges
which Government has committed to help address.
Among the challenges is the availability of power in which
Government is seized with a number of interventions to cover the gap.
Government is also appealing to businesses and individuals
owing power utility — Zimbabwe Electricity Supply Authority — to pay their
debts which are amounting to over $1,2 billion or at least draw payment plans
in liaison with Zesa.
“The power situation in the country is dire, it has
graduated from being a challenge to a very big problem,” said Energy and Power
Development Minister Fortune Chasi at the breakfast meeting.
“I would like to make an impassionate plea to commerce and
industry to say you owe significant amounts of money to Zesa, initially
denominated in USD, we all have to pay to have production,” said Minister
Chasi. Chronicle
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