Brace up for global competition, companies told

Ngonidzashe Chiutsi Business Correspondent
ZIMBABWEAN companies should strive to produce goods that are competitive on the global market as by 2020, more than 80 percent of local products will be open to intense competition from European products, an expert has said. Trade expert, Mr James Jowa, said the Common Market for Eastern and Southern Africa (COMESA) is pushing for regional integration and against this background; local companies should be innovative and produce quality and affordable products that can compete with others on the international market.

“COMESA member states like Zimbabwe have to be innovative, bring in new methods of production in light of increasing competition due to the opening up of trade across the borders.

For example, by 2020 more than 80 percent of Zimbabwean products will be subject to open competition from products coming from the European Union within the COMESA region. So it means we have to be productive enough to withstand that kind of competition, otherwise Zimbabwe will remain a consumer market without its own industry. And this has a strong bearing on the ability of the country to create sustainable jobs and employment,” said Mr Jowa.

He said the major challenges facing African countries like Zimbabwe were numerous which made their goods less competitive globally.

He, however, said the major trade barriers were being tackled by COMESA’s regional integration drive.

“Through COMESA, most trade barriers and non-trade barriers related to regulations on travel, conducting business, customs duties and tariffs have been removed. For example, members will not charge duty on selected products and services, except for some sensitive goods. They also have a common external tariff, meaning that member states charge the same tariff for non-member states bringing their products into the region,” said Mr Jowa.

He said, through regional integration, member states could now work as a team to attract foreign direct investment from outside the region.

He said Zimbabwe had to create a conducive and predictable operating environment in order to attract investment.

“We have to create a conducive and predictable operating environment in order to attract investment. Otherwise investors always look for where there is stability and where laws are predictable. They will also look for where they will get the highest return on their investment,” said Mr Jowa.