The ManicaPost
Blessing Rwizi Business Correspondent
THE Confederation of Zimbabwe Industries (CZI) has partnered with the Zimbabwe Cross Border Traders’ Association in a bid to create room for the later to operate and discourage them from competing with local industries.
The move has also been taken to reduce importation of goods via informal channels and stimulate exports to improve industrial capacity utilisation and avoid subsequent loss of potential revenue to the national fiscus.
It would also sustain the livelihoods of cross border traders while allowing manufacturers to keep operating and generate income into the national basket.
CZI president Mr Busisa Moyo discouraged cross border traders from smuggling or importing goods via informal channels as it is worsening deficit in the country.
“We partnered with cross border traders to essentially allow them to access locally manufactured goods and trade them locally or export them to neighbouring countries and boost the national basket. This is a way of reducing imports into the country and according to the alliance, Steward Bank shall be providing credit to the traders according to how they are operating,” said Mr Moyo at a Round Table Briefing with Manicaland CZI members in Mutare last week.
He added: “The country is getting more money from imports than exports hence there is need for minimal local content rules as one of the solutions to the existing problem in this country. Banks should also lend more money to manufacturers than individuals because we have noted that manufacturers are getting 11% while individuals are getting 23%. More so, exports are being under recorded or not recorded at all in Zimbabwe and that’s one more contributing factor to the country’s deficit.”
He added that in 2009 imported goods were valued at $2 billion but now the figure has gone up to $6 billion and in 1997, exports were on $2.2 billion but the figure has gone up to $3.5 billion.
Mr Henry Nemaire of Tanganda Tea said corruption was also a contributing factor to the high rate of smuggling and importation of goods via informal channels into Zimbabwe.
“Corruption has gone beyond the extremes and that is contributing to the high rate of smuggling in Zimbabwe,” said Mr Nemaire.
