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Business Reporter
ZIMTRADE, the country’s trade facilitation agency says the recent removal of export permits by Government has opened a window for increased exports of locally manufactured products.

Manufactured products and services contribute less than 10 percent each to Zimbabwe’s exports earnings, which are dominated by minerals and tobacco at 80 percent combined, recent reports show.

In response to the need to bolster exports, Government has removed export permits for all industrial commodities as an initiative under the latest Statutory Instrument, 122 of 2017.

“This is a welcome development for exporters as this is set to significantly reduce the costs and time required for an exporter to send out shipments. Companies in the manufacturing sector are set to benefit from the removal of export permits,” said ZimTrade.

The 2011 World Trade Organisation review on Zimbabwe had highlighted that one of the impediments in exporting goods is the bureaucracy involved and the plethora of regulations, processes and permits.

As such, ZimTrade is optimistic the relaxation provided in S.I. 122 of 2017 will go a long way in remedying this situation.

“This export-driven initiative is important in increasing exports for the country and foreign direct investment inflows,” said the trade agency.

Speaking at the recently held ZimTrade Annual Exporters’ Conference in Harare, the Minister of Industry and Commerce, Dr Mike Bimha, said: “As you may be aware, Government removed all, except four strategic products (fertilisers, second-hand equipment, sugar, and gypsum) from export licensing requirement as gazetted through Statutory Instrument 122 of 2017”.

ZimTrade said it is convinced efforts such as these will go a long way in increasing value to the economy.

“ZimTrade is encouraging companies to take advantage of these reforms so that they are able to compete in the export market,” it said.

Experts have stressed the need to boost exports as a long term strategy to addressing the liquidity problem in the economy. While Government has crafted a number of fiscal and monetary incentives to support local exporters, the issue of competitiveness is weighing down on export performance, said Dr Bimha.