Call to urgently recapitalise local industry

Business Reporter
The $400 million worth of goods imported into Zimbabwe for resale in the first half of this year reflects the need to recapitalise local industry, a senior Government official has said.
Since the introduction of the multi-currency regime, Zimbabwe has become a destination for various goods and services, as most retailers enjoy the benefits of supplying goods into the country and getting increased US dollar earnings without fear of losing value.

Industry and Commerce Deputy Minister Chiratidzo Mabuwa told delegates at Buy Zimbabwe Retailers and Suppliers Conference yesterday that there was urgent need for recapitalisation of the industry to counter the influx of imported products in the country.

“It is fascinating to try and comprehend what $400 million can do to the local manufacturing and retail sectors if channelled towards local production,” said Deputy Minister Mabuwa.
She said such negatively skewed trade trends were detrimental to any effort at rejuvenating the local industry, creating employment and dealing with the liquidity crunch in the country.

“Retailers provide a critical link with consumers of various products and services. They are at the forefront of expectations from consumers who wish to see a return for their value,” she said.

Local manufactures are lobbying for a 60 percent retail shelf space for their goods with the idea of creating a level playing field with imported products.
OK Zimbabwe chief operating officer Mr Albert Katsande told the same conference that local companies should increase production in to fill up supermarket shelves.

He said OK procures 30 percent of bathing soap from local manufactures, Olivine and United Refineries.
Mr Katsande said it was quite worrisome that the country is still importing biscuits from Zambia and Royco from Malawi, products it used to export.

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