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LOCAL manufacturers should complement Government efforts to restrain imports by reducing prices of goods that have been removed from the general import licence, retailers have said.
Two weeks ago, the Government announced the promulgation of Statutory Instrument (SI) 64 of 2016, which removes several products that are locally available from the general imports to stimulate the economy.
Cooking oil, petroleum jellies, bottled water, mahewu, furniture, hardware, blankets and dairy products are some of the products that have been removed from the general import licence.
While consumers worry about relative high pricing of local products, industry captains have backed the protectionist move, which gives them an edge in the market.
The Confederation of Zimbabwe Retailers (CRZ) has called on local producers to re-adjust their prices to stimulate domestic demand and help reduce the trade deficit, which has been hovering around $3 billion.
“We back the SI 64, which was promulgated by Government, we know the intention is to ensure local industry gets a window to recuperate . . . the issue of competitiveness always lies with the manufacturers and they have to make sure they grab the opportunity by the neck and don’t short-change the Government by not meeting the local demand, which is there,” CRZ president Danford Mutashu said.
He said the influx of cheap imports was an indication of a growing market that was being frustrated by high pricing.
“The issue of prices isn’t an issue that is solved by the retailers. It’s a function of the cost of production at the manufacturing stage. We’re not shifting blame but we’re simply saying the SI must be backed by the internal devaluation where the other cost drivers that go into the manufacturing sector should also be made to come down,” Mutashu explained.
For example, he added, retailers have always been advocating for commercial rentals to go down but they have not been reduced to desired levels, a situation that has been negatively impacting on competitiveness.
Since the announcement of the SI 64, prices have not gone down from the manufacturers’ side.
“The prices haven’t been going down from the manufacturers’ side but prices have always been going down due to the deflationary pressures and declining demand over a consistently long period of time.
“We don’t want to see prices going up now and this is the reason why we’re saying when the Government has done their part, as the business community we must complement Government’s initiative by also ensuring there is sanity.
“At times, you see people taking advantage of the protection and start increasing prices; and who are you increasing the prices for; it’s the impoverished consumer,” Mutashu said.
Last week, the Confederation of Zimbabwe Industries and the Zimbabwe National Chamber of Commerce said they fully support the Government’s decision to restrict importation of products that are available locally as this will stimulate the economy.
Online Reporter