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Business Reporter
THERE is an urgent need to review trade regulations in the country to increase export capacity and support economic growth, ZimTrade chief executive officer, Ms Sithembile Pilime, has said.

In a presentation paper on ease of doing exports rapid results initiative last week, she said quick action needs to be taken to tame imports that continue to drain scarce foreign exchange and move towards trade balance.

Ms Pilime said trade performance, as indicated by the latest Zimstat surveys, points to negative gains on the export arena as imports continue to dominate despite import control regulations.

“I would like to preface my comments by looking at our current trade performance based on the latest figures from ZimStat. Exports declined by 13.05 percent when we compare the figure for March 2017 to the January 2017 figure,” she said.

“Comparatively, imports increased by 37.56 percent over the same period. Not surprisingly, the trade deficit worsened by 141 percent over the same period.”

These trade figures paint a worrisome trend, said Ms Pilime, adding: “it is clear that our dire situation demands serious commitment to address the trade regulatory and export capacity issues”.

She said the trade performance report underscores the need to implement recommendations made to enhance trade growth so as to consolidate the gains made in reviewing the investment climate.

“It is evident that while we have set out in the right direction, the pace of implementation is exceedingly slow in the face of our worsening challenges. Therefore, it is imperative that we take immediate and decisive action,” said Ms Pilime.

She alluded to reforms undertaken by regional peers, Namibia and Mauritius, who in the face of similar trade challenges came up with quick action plans.

In August 2006 Mauritius enacted the Business Facilitation Act, which gave regulatory bodies the power to implement recommended reforms and changes in administrative procedures while the specific legal instruments were going through due process in Parliament.

Similarly, Namibia established the Business and Intellectual Property Authority (BIPA) in January 2015, pending the enactment of the enabling Bill, which was not expected to be completed before the end of 2015.

“We, therefore, implore the authorities to consider similar action,” said Ms Pilime.

“In the context of business unusual, we have to achieve the goals that we set at the outset. Come 14 June 2017, we should be reviewing our progress in the implementation of the proposed recommendations.”

She said an export-led growth was crucial for the economy and stressed the need for stakeholders to direct focus on developing a national export strategy through the formulation of guidelines for export facilitation.

Ms Pilime paid tribute to the Office of the President and Cabinet, which is spearheading the doing business reforms, for its role in galvanising stakeholders to remain focused and committed to transforming the economy.