adminOliver Kazunga, Senior Business Reporter
THE Government should craft more policies that promote domestic economic growth and protect gains achieved last year, business leaders have said.
In separate interviews business executives said Zimbabwe registered notable economic developments in 2016 despite the prevailing economic challenges.
Confederation of Zimbabwe Industries (CZI) vice president Mr Sifelani Jabangwe said members of his organisation expected 2017 to be a year to consolidate what was achieved last year.
“In 2016, capacity utilisation in the manufacturing sector improved remarkably from 34,3 percent to 47,7 percent on the back of policies such as the ease of doing business reforms and the Statutory Instrument 64 of 2016.
“We just hope that the Government will continue implementing such policies that promote the resuscitation of industries,” he said.
“As a result of policies surrounding the ease of doing business and SI64/2016 some sectors registered almost 100 percent capacity utilisation.”
Mr Jabangwe said in light of the envisaged improvement in capacity utilisation, it was imperative for the Government to start looking at strategies to mobilise working capital for operating and producing companies across various economic sectors.
He said the Government should also look at ways to fund the Nostro accounts to facilitate the growth of exports as well as boost local production.
Buy Zimbabwe chief economist Mr Kipson Gundani said in 2017 his organisation would focus on rolling out campaigns aimed at educating the public and other stakeholders on the need to embrace local procurement and consumption of locally produced products. He said the economy was expected to register positive gains driven by anticipated agricultural boom.
“Our thrust in 2017 as Buy Zimbabwe is to go on the streets holding campaigns such as road shows engaging consumers and other stakeholders on local procurement policies,” he said.
Mr Gundani said Buy Zimbabwe has, since its launch in 2012, made significant strides in promoting consumption of locally manufactured products.
“Buy Zimbabwe as an initiative has changed the trend in local consumption. For example, between 2009 and 2011, the trend on consumption was 75 percent imported products, 25 percent locally manufactured products. We have since the launch of the Buy Zimbabwe initiative managed to turn the tables to 75 percent locally produced products and 25 percent imports.
“In 2017, our focus is to achieve 100 percent local consumption to facilitate continued improvement in capacity utilisation,” he said.
Employers Confederation of Zimbabwe (Emcoz) president Mr Joe Kahwema said the operating environment for businesses might continue on the tough side.
“2017 is more likely to be a difficult year on the basis of the prevailing economic climate. As Emcoz, we just hope that the Government will devise policies and strategies that will take the economy out of the current situation,” he said.
Presenting the 2017 national budget last month, Finance and Economic Development Minister Patrick Chinamasa noted that a complementary doing business environment as well as finalising the external payment arrears situation would help improve access to credit lines.
“Over-dependence on imports against the background of the strong US dollar and a weakening South African rand had undermined companies’ competitiveness over both the domestic as well as export markets,” he said.
“The above adverse effects on agriculture, mining and manufacturing, as a result, meant low domestic production underpinning the prevailing low capacity utilisation across sectors, low incomes, high unemployment levels, domestic liquidity and cash challenges.”
Despite these negatives, Minister Chinamasa projected that the economy was this year set to turn around from the slowdown mode to modest growth led by key sectors of mining and agriculture, benefiting from the anticipated normal to above normal rainfall.
Overall Gross Domestic Product growth is projected at a moderate 1.7 percent in 2017, premised on the anticipated modest improvements in international commodity prices, fruition of planned mining investments and benefits from the ease of doing business reforms.
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