The governor of the Reserve Bank of Zimbabwe John Mangudya has urged local business to take advantage of the weakening South African rand to import machinery at a cheaper price and thus become competitive in the region.
Industry has been complaining that the weakening rand is making Zimbabwean products more expensive, but Mangudya said local business could become competitive but reducing labour costs.
“There’s need to cut our costs at company level to increase production and look for ways to stimulate demand of local products both on the domestic and foreign market. As RBZ we’re reengaging international banks to unlock new money to the economy through long-term loans and this is going to finalised next year,” he was quoted by The Chronicle as saying.
The South African rand has been depreciating over the past few months and plunged further yesterday hitting an all-time low of 15.39 to the United States dollar following the sacking of Finance Minister Nhlanhla Nene.