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Harare Bureau
THE $400 million worth of goods imported into Zimbabwe for resale in the first half of this year reflects the need to recapitalise local industry, a senior government official has said.Since the introduction of the multi-currency regime, Zimbabwe has become a destination for various goods and services, as most retailers enjoy the benefits of supplying goods into the country and getting increased US dollar earnings without fear of losing value.

For the half year to June 2014 the import bill stood at $2.9 billion while the trade deficit was $1.7 billion with part of the deficit fuelled by imports.

Industry and Commerce Deputy Minister Chiratidzo Mabuwa told delegates at Buy Zimbabwe Retailers and Suppliers’ Conference yesterday that there was urgent need for recapitalisation of the industry to counter the influx of imported products in the country.

“For the same period, a souring trade deficit of $1.7 billion is continually propelled by the consumptive nature of the retail sector which imported over $400 million worth of groceries in the first half of  2014.

“It is fascinating to try and comprehend what $400 million can do to the local manufacturing and retail sectors if channelled towards local production,” said Deputy Minister Mabuwa.

She said such negatively skewed trade trends were detrimental to any effort at rejuvenating the local industry, creating employment and dealing with the liquidity crunch in the country.

“Retailers provide a critical link with consumers of various products and services. They are at the forefront of expectations from consumers who wish to see a return for their value,” she said.

Local manufacturers are lobbying for a 60 percent retail shelf space for their goods with the idea of creating a level playing field with imported products.

Deputy Minister Mabuwa said improved synergies between retailers and suppliers are not only a business necessity, but central to improving innovation, product quality and benchmarking ourselves against similar offerings.