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Minister Mike Bimha

Oliver Kazunga, Senior Business Reporter
EXPORTERS should tap into opportunities from regional and multilateral trading agreements to create a bigger market for locally manufactured products, a Cabinet Minister said yesterday.

Industry and Commerce Minister Dr Mike Bimha said this in a speech read on his behalf by a chief economist from the ministry, Mr Tilus Gopoza during the Zimbabwe Textile, Cotton and Fashion Investment Forum in Bulawayo.

“The Government is a key player in both regional and multilateral trading arrangements such as Common Market for Eastern and Southern Africa (Comesa), Sadc, Sadc-Comesa-East African Cooperation (EAC), Tripartite Free Trade Area and World Trade Organisation,” he said.

“Let me take this opportunity to challenge you to take advantage of vast opportunities and advantages that come with these trading agreements which will obviously unlock a bigger market for our products,” said Dr Bimha.

He said of late Government was seized with negotiations on the continental Free Trade Area, which will enhance the country’s market access. Dr Bimha also stressed the importance of Foreign Direct Investment (FDI).

“FDI constitutes a critical part of private capital flows to developing countries. The investments actually play a catalytic role in enhancing the productivity and contribute to diversification of economies,” he said.

The minister said empirical evidence shows that inward investment has the potential of creating jobs, triggering economic growth, and contributing to a transfer of resources, both in terms of capital and knowledge. In this light, FDI provides investors with market entry and has the advantage of reducing the costs through economies of scales.

“And in particular, it enables them to achieve well-integrated value chains, coordination advantages and improves the companies’ effectiveness and efficiency.

“The Government is making strong efforts to attract FDIs and enhance the spill-over effects on the economy, in particular within the cotton-to-clothing value chain, which is in line with the cluster on value addition and beneficiation under Zim-Asset,” he said.

Dr Bimha said the Government initiated programmes aimed at improving the competitiveness of the clothing and textiles sector through the Rapid Result Initiatives (RRI), duty rebate on imported capital equipment and setting up of the National Competitiveness Commission.

Under the RRI, the Minister Bimha said the ease of doing business reforms were being instituted to enhance competitiveness of the cotton to clothing value chain through streamlining export and import procedures.

Rebate of duty on capital equipment is one of the fiscal incentives that enables the sector players to sharpen competitiveness by importing state-of-the-art equipment at a reasonable cost.

“The National Competitiveness Commission is aimed at reducing the cost structures in the country and boosting the country’s exports competitiveness on the global market,” he said.

@okazunga