Zimpapers Logo

Oliver Kazunga, Senior Business Reporter
THE Confederation of Zimbabwe Industries (CZI) Matabeleland Chapter has urged the Government to urgently address the prevailing foreign currency shortage to help companies improve capacity utilisation to competitive levels and boost the economy.

In an interview yesterday, CZI Matabeleland Chapter president Mr Joseph Gunda said although some firms in Bulawayo recorded positive results in the second quarter, their efforts were still being derailed by foreign currency shortage.

“There are some companies that have recorded successes in turnaround and on capacity utilisation there have been improvements in some but the major challenge we have had is shortage of forex,” he said.

General Beltings, United Refineries Limited, Mealie Brand, Tregers, and PPC Zimbabwe were some of the firms that registered good performance in terms of capacity utilisation during the first half.

“Forex shortage is hitting us very hard and our members are struggling to get foreign currency from the Central Bank to the extent that we have not been able to import the necessary raw materials we need, otherwise our performance could have been better had we obtained foreign currency from the Central Bank,” said Mr Gunda.

He said it was not ideal to get foreign currency from the alternative market as some of their members were registered on the Zimbabwe Stock Exchange.

“Despite the forex shortage, a lot of our members have maintained stable prices with the hope that we get foreign currency allocation.

“We just look forward that the issue of forex shortage gets real attention,” said Mr Gunda.

He buttressed President Mnangagwa’s remarks at the Heroes Day celebrations in Harare on Monday that with the harmonized election now behind us, focus should be on nation building and reviving the economy.

Said Mr Gunda:
“We know there have been issues of elections, but the economy has to move on and we look forward to seeing the Government playing its normal role under this circumstance to ensure that industry is well funded in terms of forex and gets the necessary raw materials.”

As the economy is reconstructed, he said, it was imperative for the Government to address the issues of imported products that were still finding their way into the country through porous borders and corruption.

“The other issue is the imports (those restricted products) that are finding their way into the economy.

“For example, we have agricultural implements like ploughs that are coming into the country to the tune of $3 million and yet we have got Mealie Brand, a local company that is ready and has been manufacturing this product at high quality.

“Also restricted products such as conveyor belts, cement and refrigeration panels were finding their way into the country.

“In some of these instances, it has been a question of some unprocedural activities happening even within the Ministry of Industry, Commerce and Enterprise Development itself,” he said.

Mr Gunda said CZI Matabeleland Chapter has engaged the Minister of Industry, Commerce and Enterprise Development Dr Mike Bimha over the above matter but to no avail.

In 2016, the Government introduced an import substitution programme to support the revival of the local manufacturing sector which since the liberalisation of the economy in February 2009 has been facing unwarranted and stiff competition from cheap imported products.

Mr Gunda said CZI Matabeleland Chapter is wondering why the Ministry of Industry, Commerce and Enterprise Development continued to issue import permits on restricted products despite some local companies having the capacity to meet national demand.

He said they were calling on the Government to address the issues brought to its attention to promote economic growth.

At the end of 2017, Mr Gunda said industry registered a good performance but such gains were being eroded by the challenges that were resurfacing despite the protectionist stance the Government has adopted.

“We would expect the Ministry of Industry, Commerce and Enterprise Development responds and advises us what they would have done with the incidents that we brought to its attention. They have said they are still investigating but we haven’t seen the results of the investigations,” he said.

@okazunga