EDITORIAL COMMENT: Govt should put more products on SI 64 President Mugabe
President Mugabe

President Mugabe

Industry should complement Government efforts to promote consumption of local products by increasing production to meet demand.

Government early this year came up with Statutory Instrument 64 which removed several commodities from the Open General Import Licence in order to protect local industry.

Under the new law, Government has banned the importation of a number of products that are being produced locally in order to support local industries. Individuals or companies that want to import the listed products need to obtain a licence from Government but individuals that bring in the same products for their own consumption are allowed to do so.

Government has said the new regulation has already started bearing fruit as evidenced by a number of companies that have increased production.

In his State of the Nation address on Tuesday, President Mugabe said since its promulgation last June, S1 64 has started impacting positively on the economic growth. He said the new law had improved the efficient use of foreign currency as well as enhance local production of an assortment of products which the country used to import.

The President said a number of companies in the manufacture of plastic packaging and food commodities that include Tregers, Nampack, Proplastic and several others were immediate beneficiaries of SI 64. He said acceleration of such policy reforms will not only boost local production but will also attract new investment in the various sectors of the economy. We want to commend Government for coming up with SI 64 whose results have been immediate.

Most retail outlets are now stocked with local food commodities following the ban on the importation of these goods. There was a public outcry when Government promulgated SI 64 as many people were not confident that local companies would produce enough to meet demand. Now that local companies have proved that they have the capacity to meet local demand, Government should move to identify more products to be included on the list so that other companies can also benefit.

Companies on their part should ensure that they invest in plant and equipment in order to increase production. Consumption of local products does not only save the much needed foreign currency but also creates jobs. Companies that have increased production as a result of the promulgation of SI 64 have correspondingly increased the number of employees.

The promulgation of the Special Economic Zones Act is expected to attract foreign direct investment which should accelerate the economic turnaround. Financial institutions on their part should avail loans for capital investment especially to those companies that are involved in import substitution.

It is pleasing to note that there are positive signs of a complete revival of the country’s manufacturing sector which is the anchor of our economy.
Zimbabwe had during the past few years been reduced to a retailing nation of imported goods which in most cases were of inferior quality and this was impacting negatively on the country’s economic growth.

We want at this juncture to once again challenge the manufacturing companies to rise up to the challenge and produce not just for national consumption but even surplus for export so that the country can earn the much needed foreign currency. Zimbabwe is endowed with not just the required raw materials but also highly skilled personnel which is sought after globally.

There is therefore no excuse to rely on imports especially of food commodities and other consumables. The year 2017 should see the country’s retail outlets fully stocked with products manufactured by local companies and increased foreign currency earnings from our exports.

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