Zimbabwe Vice-President Emmerson Mnangagwa has backed the recently announced import restrictions on basic commodities saying the country needs to eliminate unnecessary imports to increase industrial activity. But he added that local industry must brace up for competition in the global market.
Speaking at the Zimbabwe National Chamber of Commerce congress, Mnangagwa was quoted by the Bulawayo daily, The Chronicle as saying: “I’m convinced that, as a strategy to increase industrial productivity, we need to eliminate unnecessary imports as we push for exports and import substitution by increasing funding in research and development among other strategies.
“As part of an import substitution strategy, therefore, we need to identify all imported products and find ways of either producing them locally ourselves, or collaborating with foreigners through joint ventures or some other arrangement.”
Zimbabwe recently removed several products from the Open General Import Licence with importers now required to obtain licences to be able to bring products like hardware and electrical products such as locks, doors, window frames, furniture, blankets, foodstuffs such coffee creamers, camphor creams, white petroleum jellies, body creams, plastics pipes and fittings, bottled water, mayonnaise, salad creams, peanut butter, jams and mahewu.
Mnangagwa however warned industry: “However, as much as we want to protect our industry from competition, we should be aware that excessive trade barriers beget retaliatory measures. Zimbabwean companies must, therefore learn to compete in a globalising economy, and on all fronts – including quality, innovativeness, speed, efficiency, packaging and cost.”
The move to restrict the importation of basic goods has met strong resistance from cross-border traders who rioted last week burning down a government warehouse at the border town of Beitbridge.
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