Raw exports worrying: President

President Emmerson Mnangagwa

PRESIDENT Emmerson Mnangagwa has expressed dismay at the lack of value-addition on exports coming out of Zimbabwe, saying it was eroding margins of the highly-needed foreign currency receipts.

BY BLESSED MHLANGA

Delivering his official opening statement at the ZimTrade conference on yesterday, Mnangagwa said he was worried that over 80% of exports were on unfinished products.

“The most important source of foreign currency to drive the economy is through exports, especially value-added goods and services,” he said.

“I note that minerals, tobacco, horticulture and selected manufactured products and services dominate the country’s export basket. The current scenario, however, where about 80% of our export earnings are coming from primary products and commodities, is undesirable.”

Mnangagwa urged more investment in value-addition to widen the export basket.

“Greater strides must be made to ensure that we expand the production and range of exported manufactured and processed goods across all sectors,” Mnangagwa said.

“The contribution of manufactured and processed agricultural commodities and services to top on exports should grow exponentially if we are to sustain economic growth trajectory and reduce our trade deficit.”

Mnangagwa said he was aware of the acute foreign currency shortages and the panic in the market, and assured the team of Finance minister Mthuli Ncube and Reserve Bank of Zimbabwe governor John Mangudya was working on solutions.

“My government will continue to re-engage with international financial institutions to support the recapitalisation and retooling of industry as well as trade finance to boost capacity utilisation and production for export,” he added.

3 Comments

  1. Exportation of raw materials is an African negative economic practice first observed and highlighted by the immortal Kwame Nkrumah very long long time ago such that it becomes very worrying and tragic that a whole president starts to express concern now, when him and his colleagues should have effectively done something about it way back at independence in 1980. Mongova mapresidents ekutaura hanzi nekuita express concern pamacoference chete? Yedu nhamo ndeye nherera chokwadi.

  2. Your Name (required):Special Black

    My friend investers come from those countries that import raw material from us. So it took time for them to invest in beneficiation, why because they benefit a lot from minerals they get from platnum and other minerals. Now HE ED is right to continue expressing concern over that.

  3. I think our President need a good financial advisor. We need proper economic displines to followed. It is unfortunate that priorities of our Government is opposite of what they preach daily. Grace Mugabe testified last month.

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