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Oliver Kazunga Business Reporter
THE Employers’ Confederation of Zimbabwe (Emcoz) says it will lobby the Government to protect local industry from cheap imports. Emcoz executive director Mr John Mufukare told Business Chronicle that it had been noted at their recent annual congress that Zimbabwe’s industries were operating below capacity while the country relied heavily on imports resulting in the exportation of jobs and contributing to the present economic challenges particularly the high unemployment levels.
The Confederation of Zimbabwe Industries (CZI) in its manufacturing survey report revealed that capacity utilisation by the industrial sector declined from 44,2 percent in 2012 to 39,6 percent this year.
The decline was largely attributable to a number of factors including liquidity constraints, power challenges, obsolete machinery and the influx of imported products.
Mr Mufukare said Emcoz and its strategic partners would work on facilitating achievement of the revival of the economy in 2014 and beyond.
“We will facilitate the recovery of the local industry through lobbying the Government to protect the local industry from cheap imports especially during the early stages of recovery, and continue promoting consumption of locally produced goods,” he said.
Zimbabwe has been experiencing a recurrent trade deficit as it has over the years continued to import far more than it exports. In the first half, the trade deficit stood at $2,37 billion after recording $3,92 billion in imports while exports amounted to $1,546 million.
South Africa remained Zimbabwe’s biggest trading partner in the six months to June, with exports to that country amounting to $1,1billion against imports of $1,8 billion.
Mr Mufukare said to facilitate economic recovery it was imperative for business to speak with one voice on crucial issues and avoid confusing policy makers through issuing conflicting proposals.
He said during their congress it was agreed to strengthen social dialogue among labour, business and government as well as encouraging urgency in reconvening the Tripartite Negotiating Forums and social dialogue.
“The economy needs revival by changing the reward system from the current one focusing on job security, attendance and entitlement to one based on productivity hence competitiveness,” said Mr Mufukare.
He said among others, stakeholders needed to reset the moral compass to weed out corruption and eliminate the desire and mentality of the population wanting to get rich quickly without being productive.
“A major finding of the congress was also the need for Zimbabwe to be globally competitive as well as being integrated into the global economy. This entails Zimbabwe being clear about its competitive advantages from a productivity standpoint,” he said.
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