BUY Zimbabwe says the country’s love of imports has created the internal economic challenges prevalent today which has led to a highly imbalanced economy.
BY BUSINESS REPORTER
In a statement on Tuesday, Buy Zimbabwe said the existence of markets directly influences industrial performance.
“The existence of markets directly influences industrial performance and love for imports has created internal economic challenges for Zimbabwe. The economy has become highly imbalanced and the powers are looking for answers. There is a growing uncertainty over the future, but in the middle of this, some sectors are thriving,” Buy Zimbabwe said.
“As the saying goes, what is good for the goose is good for the gander. Zimbabwe’s circumstances are akin to clinical trials on an experimental mouse, whose lessons can now be applied to come out of the economic woods.”
According to statistics from Zimstats, over 40% of imports into Zimbabwe are mainly consumer goods which are not productive, making Zimbabwe a retail economy.
In the eight months to August, imports were $3,6 billion against exports of $2,2 billion. This resulted in a trade deficit of $1,4 billion.
The retail sector contributes about 50% to the gross domestic product, while manufacturing contributes between 13% and 14% down from a high of 35% some years ago.
As such, the once controversial import regulations found in Statutory Instrument (SI) 64 of 2016, among others, though creating opportunities for manufacturers has failed to fully capacitate the economy which is now a cash driven.
Buy Zimbabwe, however, said the import restrictions have been a boon for the economy.
“The introduction of the SI64 has created opportunities in which manufacturers and retailers need to take advantage of in order to restore the traditional economic system, where commerce act to support the industry in a system of interrelated and interdependent elements as partners in business,” Buy Zimbabwe said.
“At the centre of this edition is the discussion on the emerging issues surrounding protecting the local industry as a response to crisis for markets underpinned by the realisation that economies survive by understanding that companies thrive only when their goods and services find a market.”
Meanwhile, the lobby group will host its fifth annual Buy Zimbabwe Retailers and Suppliers Conference to discuss some of the macro economic challenges in the country.
The 5th edition of the Buy Zimbabwe Retailers and Suppliers Conference will be held on October 27 in Harare with Industry and Commerce minister Mike Bimha as the guest of honour.