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Brighton Gumbo Business Reporter
EXPORT promotion agency, ZimTrade, has implored the government to come up with an export incentives scheme to facilitate growth of local companies. Experts have said the local market alone is too small to sustain viable businesses hence the need to produce for exports. However, most companies are struggling to break even given constrained competitiveness levels partly blamed on high production costs.

ZimTrade operations director Allan Majuru told Business Chronicle on the sidelines of the Namibian market survey presentation in Bulawayo last week that a scheme to cushion exporters was required to assist companies. He said offering exporters’ tax, financial assistance, market research, trade missions and showcasing product services at international exhibitions, would yield positive results.

“For our companies to competitively export to global markets, incentives play a key role,” said Majuru.

“As ZimTrade we constantly try to engage the government and regulatory authorities for such measures to be put in place so that our companies find it easy to do their business.” he said, adding it was crucial for the government to support exporters with incentives as this would help revamp the economy.

“For us to get out of this economic challenge, we’ve to be export driven because the local market is shrinking and there’s reduced demand locally compared to outside. “Out there, there are cash economies. Angola and in Namibia, you heard that their annual per capita income is $5,000 dollars per person. To me that’s money they’re able to spend.

“Export incentives would help our companies to be competitive in the global village despite some of the challenges they face in the operating environment,” Majuru said. Zimbabwe’s main exports are tobacco, which is 23 percent of total exports and nickel (20 percent). Others include: diamonds, platinum, ferrochrome, and gold.

The country’s main export markets are South Africa, China, Congo and Botswana. In 2014, the country recorded a trade deficit of $3,3 billion with the Reserve Bank citing in part the retreat in international commodity prices and lack of competitiveness as having hit on the country’s trade balance.