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Prosper Ndlovu Business Editor—
FINANCE and Economic Development Minister Patrick Chinamasa was at pains on Thursday while explaining the negative impact imports continue to inflict on the economy. Presenting his 2015 budget statement, the minister could not hide his shock at the fact that Zimbabweans were spending millions of dollars importing chicken cuts and offals, cakes, mineral water, dough, buns and sweet biscuits – for resell.

Chinamasa is struggling to get his head around Zimbabweans’ love affair with imports, when the same products are available in abundance at home from local producers.

The minister reported that total imports for the first 10 months of 2014 stood at $5,3 billion, while export receipts only amounted to $2,4 billion.

“Merchandise imports, excluding fuel and electricity, and services account for approximately 60 percent of the country’s import bill, indicating the country’s heavy reliance on imported goods and services that can be easily produced locally,” he said.

Busisa Moyo, the chief executive officer of the United Refineries Limited and president of the Matabeleland Chamber of Industries said the habit of importing has become a cultural issue that Zimbabweans need to unlearn to save the economy.

“People need to understand the impact of their decisions on the economy. The $3 billion we export every year through imports could be used to beef up domestic business,” he said.

“If we’ve people taking billions of dollars out of the country to bring finished goods home, it’s a problem. This activity is costing the country.”

Moyo said Zimbabweans should discard the perception that anything foreign was better and good.

“That’s our greatest enemy, and we’ve to deal with it. Such perceptions are temporary and our people need to change their mindsets and understand they also have a role to play in promoting the economy at home.”

Moyo said the government and the private sector should play their part by facilitating inclusivity in the mainstream economy, which would absorb cross-border traders.

“We know that some people survive on selling things and we can’t just tell them to stop without giving them an option. We need to point them in the right direct,” he said.

“We need to integrate economic players and I’m happy the Finance Minister highlighted that. We need to engage SMEs and cross-border traders to purchase goods from local companies under special arrangements. This will create an inclusive economic expansion,” he said.

The mining sector is the major export earner, accounting for 52 percent of mainly raw mineral exports followed by agriculture, mainly tobacco and horticulture, which accounts for 21 percent.

Exports from manufacturing remain subdued at 13 percent while other services such as transport and tourism make up 11 percent.

Said Chinamasa: “The disproportionate gap between the country’s exports and imports has inevitably culminated in a trade deficit of $2,9 billion for the period to October 2014.”

He said government was reviewing its import regime to curb the influx of imports and protect local industries.

The minister projected that merchandise imports would jump to $6,6 billion next year compared to the anticipated $6,5 billion by end of this year.

“The proposed increase in imports of 1,9 percent in 2015 will be driven by the continued depreciation of the South African Rand against the US dollar,” said Chinamasa.

He also projected exports would grow by five percent to $3,8 billion next year, driven mainly by flue-cured tobacco (3,4 percent), raw sugar (4,7 percent), gold (4 percent) and ferrochrome (1,4 percent).

“Concomitantly, the trade deficit is projected to narrow by two percent to $2,828 billion, as growth in exports exceeds that of imports,” said Chinamasa.