LOCAL manufacturers should this year increase production and make products available on shelves to compete with imported goods, a consumer watchdog has said.
BY VICTORIA MTOMBA
Consumer Council of Zimbabwe executive director Rosemary Siyachitema said industry should increase capacity utilisation levels so that local goods could be visible in the shops.
“If industry does not pull up its socks this year, it will take us a long time to have our products in the shops and foreign products will continue to dominate the shops,” she said.
The warning came as the South African rand continues depreciating against the United States, dollar making imports cheaper.
South Africa is Zimbabwe’s biggest trading partners.
Capacity utilisation is at 34,4% for local industries and the Confederation for Zimbabwe Industries has said this year, the levels would increase by 10% to 45% if government manages to meet its side of the story.
Siyachitema said in 2015 prices of basic commodities were on a downward trend due to the price reductions witnessed last year.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
The weakening of the rand also contributed to the price reductions.
Zimbabwe uses the multicurrency system, but the dollar is the reference currency.
The consumer basket for a family of six declined in December to $554 per month after opening the year 2015 at $584 per month and this has been due to the decline that has also been witnessed in the food basket and detergents basket throughout the year.
The food basket closed the year at $113 per month from $141 per month in January.
In 2015, deflationary pressures persisted in the country due to tight liquidity conditions, weak consumer demand and the appreciation of the dollar against the rand.
Deflation has negative effects on the economy as it weakens consumption and investment as real debt burdens increase, households anticipate further price reductions and firms face higher real interest rates.
