Expedite EPA negotiations Govt challenged

Addressing delegates at a businesses seminar organised by Zimtrade yesterday, the European Union Ambassador to Zimbabwe Mr Aldo Dell’Ariccia said regional integration could create viable economic entities which were necessary for growth hence the need for the negotiations to be concluded.
“EPA will open up markets for the Zimbabwean industry and this is a necessary move as there is intense need for economic growth. Exporting products duty free to the European market means progressive growth for the local economy.
“Zimbabwean Parliament and Senate ratified EPA in December 2011 but still pending of notification. We need to speed up the process as the provision of the EPA allow for provisional application only to signatory Eastern and Southern Africa (ESA) states,” he said.
He said it was better to go for the economic partnership international agreement in order to continue benefiting from duty free trading.
“There is need for the country to do something before 2014 as we don’t want other countries to violate world trade organisation rules.
“Zimbabwe has a $9 billion debt which needs to be covered and these large areas hamper investment hence the need to develop international trade,” he said.
He said EPA was a strong trade instrument which if well manipulated, could secure markets for Zimbabwe internationally.
“The main benefits of EPA are that it promotes economic integration and good corporate governance that helps countries to develop economically.”
Speaking at the same occasion the managing director of Zimplow, Mr Zondi Kumwenda, said there was great need for the revival of the local agricultural sector as its poor performance was affecting a lot of companies that depend on agricultural inputs.
“The pace of agricultural recovery needs to be stepped up                     as the manufacturing industry can depend upon those inputs reducing the shrinkage of raw material supplies that are troubling the country.
“This will also help the country to save because the money that is used to import products outside the country could be circulated locally,” he said.
He said the other problem that was heavily weighing the industries down was the rises in costs of production as well as more aggressive foreign competition.
“The country is facing stiff competition from imports as a result of opening of the economy or trade.
“Ageing plant machinery, increased revenues, utility bills are very high, manufacturers require recapitalisation and the need for right policies are some of the issues that are affecting industrial growth which need to be addressed,” Mr Kumwenda said.
He said importing when the country was used to exporting was a major setback hence the need for companies to increase productivity to prevent a lot of cheap exports from flooding local markets.
“The issue is not on imports but the country is leaving a gap for these imports which could be closed if the country could support local sectors like the agricultural industry.
“The proliferation of cheap imports at our porous border posts must be dealt with for our local industry to get back to its feet,”              he said.
He encouraged businesses to have strong corporate structures, strong balance sheets as well as understanding the behaviour of their costs.
“There is need to go back to the traditional ways of doing business and doing away with corruption form the grassroots to Government level,” he said.