Captains of industry welcome budget statement

01 Dec, 2022 - 00:12 0 Views
Captains of industry welcome budget statement Mr Kurai Matsheza

The Chronicle

Sikhulekelani Moyo, Business Reporter

CAPTAINS of industry and commerce have welcomed the Government’s decision not to renew the suspension of duty for basic commodities saying this would spur the growth of local producers through enhanced market share.

In May this year Government suspended duty on basic commodities such as cooking oil, sugar and maize meal to cushion Zimbabweans from price shocks occasioned by geo-political developments in Europe and speculative market behaviour, which caused price increases and artificial shortages.

The import duty suspension was aimed at ensuring access to affordable basic commodities following a substantial increase in prices of locally manufactured products.

CONFEDERATION of Zimbabwe Industries (CZI)

However, in his 2023 national budget presentation last Thursday, Finance and Economic Development Minister, Professor Mthuli Ncube, said the suspension of duty, which expired on 16 November 2022, will not be extended.

Reacting to this, Confederation of Zimbabwe Industries (CZI) president Mr Kurai Matsheza said the move will help local industries to grow and increase their capacity utilisation.

“As industry, we welcome the budget statement, which indicated the suspension of duty on basic commodities, which expired on the 16th of November will not be extended or renewed,” he said.

“This will ensure that local producers of those commodities are protected against imports.
“It will certainly improve capacity utilisation in those firms. As a country, we have been battling with foreign currency shortages.

“This action will save some foreign currency and hence provide some relief to the economy.”
Non-renewal of suspension of duty for basic commodities is also Government’s effort to promote industrialisation through import substitution.

Under the National Development Strategy (NDS1), the country prioritises value chain development where 10 priority value chains have been identified for industrial growth and structural transformation.

The targeted value chains include fertiliser, pharmaceuticals, cotton, sugar, leather, metal casting, soya bean and dairy value chain.

Under the National Development Strategy (NDS1), the country prioritises value chain development where 10 priority value chains have been identified for industrial growth and structural transformation.

Also commenting, Zimbabwe National Chamber of Commerce Matabeleland Region chairman, Mr Mackenzie Dongo, said the removal of suspension of duty for basic commodities will enhance the ‘Buy Zimbabwe’ concept and grow local productivity capacity. — @SikhulekelaniM1

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