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Business Reporter
Government has expressed concern over the growing import bill for finished products on the local market highlighting that current efforts to revive the manufacturing sector will remain under threat. In a speech read on her behalf by director of Enterprise Development Mrs Florence Makombe at the Buy Zimbabwe 3rd Annual Retail Supply Chain Conference yesterday, Industry and Commerce Deputy Minister Chiratidzo Mabuwa said of concern is the growing import bill that is now posing a threat to the revival of the manufacturing sector.

During the half year to June this year, the country’s import bill stood at $3,1 billion while exports amounted to $1,23 billion representing a souring trade deficit of $1,77 billion. “The statistics are a clear sign that the nation’s aggregate demand is highly skewed to foreign products and the immediate question to ask ourselves is how many jobs are we losing to other countries, if we are to assume that this is the revenue generated by local companies.

“This continuous trade deficit therefore is quite detrimental to any Government’s policy of reviving the local industry and employment creation,” said Deputy Minister Mabuwa. She said unless the country shifts its consumption pattern towards local products and services, the retail supply chain will remain weak despite it being the basis of industrialisation.

Deputy Minister Mabuwa said there is need to build synergies along industrial value chains in order to unlock untamed opportunities in the economy. She said the current challenges bedevilling the local industry are synonymous with macro challenges facing the economy and this has compromised the competitiveness of locally manufactured products.

“While Government is at one end trying to address the perpetual macro challenges like unemployment, among others, on the other extreme, we are also trying to promote production and consumption of domestically produced goods in a competitive manner,” said Deputy Minister Mabuwa.

Mrs Makombe in her capacity said importation of some products at the moment is a necessity considering that some of them are not locally produced or available. She said the country used to produce nine thousand types of products but the figure has since gone down to six thousand therefore highlighting the need for imports in some areas.

Confederation of Zimbabwe Retailers Association president Mr Denford Mutashu said there is need for the whole retail supply chain to work together for the achievement of a common goal. He said there is an ideal opportunity for industry players to hold conversations, present thought leadership and learn about the latest trends in the supply chain industry.

Retailers who attended the conference expressed concern over the issuance of import licences to middlemen highlighting that lack of checks and balances have exposed consumers to those unscrupulous dealers.

Last year captains of industry also implored Government to exercise extreme caution when issuing import permits as most import permits ended up in wrong hands who then gazettes prices not in sync with current market conditions.