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Business Editor
ZIMBABWE requires urgent cost restructuring measures with a bias on supporting agriculture so as to achieve meaningful economic growth, Zimra said.

The country’s economy is based on agriculture and its people’s core competencies lie in this sector, board chair Mrs Willia Bonyongwe said yesterday.

She urged the Government to build more dams and develop sufficient irrigation infrastructure, which would increase job opportunities and Gross Domestic Product, the primary indicator on the health of a country’s economy.

“Farming is our way of life. Therefore, Zimbabwe’s economic recovery will always lie in this sector and there is need to support farming in a systematic and sustainable manner, which also does not reverse the gains of the land reform,” said Mrs Bonyongwe in a statement on Zimra revenue performance for the first half of 2016.

“The Government must also look into the cost structure in the agricultural production value chain, inputs, electricity, water, cost of money and tenure thereof.

“It must also regulate the operations of the powerful cartels in the marketing of agricultural produce.

“The current pricing does not advance successful farming.”

Economists have pointed to the high costs of doing business in Zimbabwe as a major impediment to attracting foreign direct investment.

These have been blamed for the influx of cheap imports and the resultant loss of market share and jobs by domestic firms.

Mrs Bonyongwe said any increase in agricultural production would yield a positive impact on industrial capacity and commercial activity.

“Farmers can be organised to supply specific agricultural products to China to revitalise the economy.

“The mode of contract farming can also be used so as to have mutual benefits and ensure adequate working capital.

“That approach will rescuscitate the economy, create jobs and increase aggregate demand. It is only then that revenue collection can increase sustainably for economic development,” she said.