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Jacob Mudenda

Oliver Kazunga, Senior Business Reporter
EXPORT promotion agency, ZimTrade, says the on-going investment reform process should enhance exports so as to increase production and boost earnings for the country.

In recent years, Zimbabwe has been recording a negative trade balance with the export sector accounting for $3,1 billion against imports of $6 billion last year.

Addressing business executives and Parliamentarians during a two-day ease of doing business seminar in Bulawayo last week, ZimTrade chief executive officer Sithembile Pilime said the country’s economic growth was dependent on growth in exports.

While efforts are being made to improve the ease of doing business, focus should also be made to improve the ease of exporting, she said.

“According to recent findings by the World Trade Organisation (WTO), what is impeding the growth of exports in Zimbabwe is the imposition of too many restrictions on exporters and lack of cost competitiveness arising from a plethora of regulations,” she said.“Also, long periods of processing export permits is leading to loss of customers, markets as well as products due to perishability,” she added.

In his address on Friday, the Speaker of Parliament, Jacob Mudenda, said the legislature was ready to complement the Office of the President and Cabinet in pursuing efforts to improve the ease of doing business.

Against this background, Zimbabwe is angling for a top 20 position from 155 in the global ease of doing business ranking through a number of reforms being undertaken to accelerate economic recovery.

Pilime said in light of the impediments to the country”s export sector, focus should also be on improving the ease of exporting to boost Zimbabwe’s exports base.

“There’s a need to also promote the ease of exporting because the existing exporting companies are collapsing further reducing the country”s exports,” she said.

Due to lack of export incentives, Pilime said, Zimbabwean exporters are uncompetitive regionally and internationally.

“Export documentation is very expensive in Zimbabwe compared to our regional trading partners. For example, the Bill of Entry is the most expensive at $60-$100 with limited duration that is 30 days after which a penalty of $50 per consignment is charged. Industry contends that both temporary export permits and the deposit are unnecessary and burdensome since the CD1 form is a guarantee for repatriation…“Regulation shouldn’t be at the expense of competitiveness,” Pilime said.

She said there was a need for Zimbabwe to streamline export documentation to promote the growth of exports in the country.
Pilime said according to the 2014 WTO report, Zimbabwe was on number 24 in terms of exports in Africa with South Africa taking 70 percent of the country’s markets.