Currency crisis scuttles import ban plan

While Zimbabwe’s June
2016 implementation of
Statutory Instrument (SI)
64 – which saw the ban of a
large number
of imported
goods – has
seen a “small
revival”
in local
production,
the lack of
“adequate
foreign
currency” is
hampering
growth.
“This is
the worst
time that we
could have a liquidity crisis
as we are unable to import
raw material,” commented
the president of the
Confederation of Zimbabwe
Industries (CZI), Busisa
Moyo.
Addressing the media
ahead of the CZI annual
symposium this week,
Moyo said Zimbabwe was
in a crisis.
“It can’t be
business
as usual.
Businesses
are closing,
applying for
short time
and laying off
workers.”
He pointed
out that the
measures
introduced
to protect
local
industry had seen several
manufacturers increase
production. Furthermore,
there had been an increase
in new companies setting
up factories but, Moyo
highlighted, these new
developments would not be
sustainable without easy
access to foreign currency
Zimbabwe National
Chamber of Commerce
president, Davison
Norupiri, agreed that
the policy change had
seen increased local
manufacturing investment.
“Government also
launched the command
agriculture programme
and if we do justice
to it, we will manage
to feed ourselves,” he
said, adding that the
Zimbabwean government
had introduced export
incentives in the form of
bond notes.
South African traders
were hardest hit by the
import ban as Zimbabwe
remains one of the
country’s top export
markets on the continent.
INSERT
This is the worst time
that we could have a
liquidity crisis as we
are unable to import
raw material.
– Busisa Moyo