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John Mangudya

The Reserve Bank of Zimbabwe (RBZ) has called on local companies to take advantage of the devaluation of the South African rand to import manufacturing machinery and reduce the importation of finished products for the country to be competitive.

RBZ governor John Mangudya said Zimbabwean companies should benefit from the multicurrency regime by utilising all opportunities in business to be competitive on the market.

“There’s need to take advantage of the depreciation of the South African rand to import value add machinery at cheap prices in South Africa to reduce our level of imports and become competitive on the market.

“We also need to reduce the cost of doing business to compete with our neighbouring countries and use the internal devaluation through reducing labour costs and wages,” he said.

He said this during an internal devaluation symposium, which was conducted by the Confederation of Zimbabwe Industries meant to look for ways on how businesses can benefit from this multicurrency regime.

“There’s need to cut our costs at company level to increase production and look for ways to stimulate demand of local products both on the domestic and foreign market.

“As RBZ we’re reengaging international banks to unlock new money to the economy through long-term loans and this is going to finalised next year,” he said.

He added that the RBZ is working on reducing the cost of doing business and increase confidence of doing business in the country.

“The government must facilitate the ease of importing and exporting through reducing time of processing documents to do business,” he said.

He said the government is modernising our borders to increase transparency and curb smuggling.

He also added that Zimbabwe needs entrepreneurs and being productive in the market to become competitive. — BH24