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Business Reporter
ZIMBABWEAN firms should be more aggressive in exploring opportunities for trade beyond the borders and increase the level of exports in order to reverse the trade imbalances the country is grappling with.
The country’s import bill for the period January to June 2014 reached $2,9 billion against exports of $1,2 billion resulting in a $1,8 billion deficit. Last year exports were $1,546 billion against imports of $3,896 billion leaving the country with a $2,350 billion deficit.
There have been very strong calls from industry for protectionism around imports but the Confederation of Zimbabwe Industries president Mr Charles Msipa said Government can only control imports to a certain extent and all the questions about trade imbalance can be solved by increasing the level of exports.
“Unless we start growing the level of manufactured exports significantly we are not going to reverse the trade imbalance that we have with other countries.
“The key to reversing and to achieving more balanced trade is to increase the level of manufactured exports,” he said.
According to Mr Msipa, Zimbabwe is a fairly small market in population and by global or even regional standards the country’s Gross Domestic Product is very low. Therefore, companies should look outside the country for greater business. He said likewise a company seeking to do business in Zimbabwe must also look at the region to justify the level of investment they can make.
“There is a very strong case for us to probably start being less insular about servicing our market or building a fortress around our market and actually become a lot more outward. We must investigate the opportunities for trade within the SADC and Comesa regions with significantly bigger GDPs and bigger populations,” he said.
“There is great boom, great level of economic activity all around us taking place and there is a very strong case for Zimbabwean firms to more aggressively explore opportunities to trade with the rest of the region,” Mr Msipa said.
Online Reporter