SI64 boon for Mutare companies, factories

Abel Zhakata Senior Reporter
IMPORTS management measures brought about by the enforcement of Statutory Instrument 64 of 2016 have resulted in Foreign Direct Investment (FDI) as some multinational companies have set up factories in Mutare.

Addressing delegates to a business meeting held in the eastern border city recently, Confederation of Zimbabwe Industries (CZI) vice president Mr Richard Chiwandire said Mutare had benefited immensely from SI 64.

“The import management measures have resulted in an increase in Foreign Direct Investment, mostly by companies that used to export products to Zimbabwe coming to set up factories in Zimbabwe.

“Willowton Group of Companies has built a $40 million factory here in Mutare to produce cooking oil and soap.

“These products used to be manufactured in South Africa and were exported to us,” he said.

The setting up of the plant which is situated in the Nyakamete Industrial Area has created over 400 jobs, drawing employees, mainly from nearby Sakubva high-density suburb.

“While CZI is very happy with SI 64, I need to point out that we are well aware of Government’s commitment to regional and international trade treaties that advocate free trade among member-states.

“We are aware that our parent ministry is constantly under pressure in their endeavours to justify these measures at Sadc on our behalf. We applaud them for that.

“We are also aware that South Africa and other regional trading partners have their own SI 64s that are disguised in buy local initiatives such as local content requirement legislation.”

Mr Chiwandire urged local industries to use the window presented by the import measures to strengthen their enterprise.

“We need to work towards being competitive with anyone in the world on import parity in terms of both price and quality.

“As Zimbabweans, we need to pride ourselves in our locally produced goods, local transport and local services. We need to migrate more towards local content requirement legislation. We need to rally around the Buy Zimbabwe campaign.”

Mr Chiwandire said companies must take advantage of the SI 64 by re-investing profits.