adminProsper Ndlovu recently in Victoria Falls
ZIMBABWE needs to re-adjust its pricing system to achieve product competitiveness in the region and assist industry growth.
Matabeleland North Provincial Minister of State Cain Mathema said this on Wednesday while addressing delegates who were attending the 2016th edition of the Zimbabwe National Chamber of Commerce (ZNCC) congress.
The minister said on-going investment efforts should be buttressed by a proper pricing framework that matches regional levels.
“We need to change our pricing system as businesses. At the moment our product pricing is higher compared to that of our neighbours,” said Minister Mathema.
His call came at a time when the government through Statutory Instrument 64 of 2016 has tightened importation of products that are manufactured locally.
Research has also shown that Zimbabwean products were expensive hence the country was experiencing an influx of cheap imports.
This, added to the strong United States dollar being used as the main currency in a multiple currency environment adopted since 2009, has been blamed for stifling industry growth as it hampers exports.
While the government through the Reserve Bank of Zimbabwe has urged a downward price adjustment, business cites escalating production costs as a drive behind high pricing.
Businesses also want the government to reduce taxes and regulatory compliance systems. They also cite high power, water, transport and technology costs, which are factored in the final product pricing.
Minister Mathema said it was high time that Zimbabwe embraced modern economic approaches that would assist achievement of Zim-Asset targets by 2018.
He said implementation of private public partnerships (PPPs) and joint ventures was critical in major sectors of the economy such as agriculture, mining and energy.
Minister Mathema said farmers across the country need to be fully supported to produce on a large scale and feed into the local manufacturing and processes sector.
Given the low agricultural output Zimbabwe has a dilemma accessing raw materials for processing industries thus the bulk of them are imported from the region.
Minister Mathema said through value addition and synergies, Zimbabwe can withstand the effects of sanctions and revive the ailing parastatals such as the National Railways of Zimbabwe and Cold Storage Company, which were once big employers in the country.
Speaking at the same platform Industry and Commerce Minister Mike Bimha said the Government was working with the business community to bring the desired economic transformation.
Online Reporter