Bulawayo manufacturers cheer introduction of ZiG

SOME sections of the Bulawayo manufacturing industry are witnessing increased business activity due to the introduction of ZiG, with executives stressing the importance of its stability for the economy’s growth.

Executives informed Business Chronicle that relying on foreign currency as the base currency for trade would hinder economic growth, as it would lead to an influx of cheap imports that may overshadow locally manufactured products.
In April, the Reserve Bank of Zimbabwe introduced ZiG as part of a raft of policy interventions to address exchange rate volatility, curtail inflation and restore macro-economic stability.

ZiG

The new currency is backed by precious minerals, mainly gold and foreign currency. ZiG continues to show its viability as the exchange tender of choice with more industry players now accepting the local currency in exchange for goods and services.

In an interview on Friday during a Ministry of Industry and Commerce tour of select industries as a precursor to the Sadc Industrialisation Week, executives said ZiG has been a game changer in their operations. They indicated that the economy is on a steady path.

Zimbabwe Pharmaceuticals head of operations, Mr Donald Mabhiza, said the ZiG injection to the market brought enthusiasm as it is a stable currency.

“We were very happy with the introduction of a stable currency. Not much local manufacturing grows when the economy is based on foreign currency. That foreign currency tends to attract products from outside the country,” he said.

“So far ZiG has been good, we are registering increased business activity in the local currency. We look forward to increased revenue and business engagements with the local market first and foreign market,” he added.

Pretoria Portland Cement (PPC) Zimbabwe Limited managing director, Mr Albert Sigei, said the Government’s economic interventions to introduce a more sustainable currency environment are commendable.

“I do hope that ZiG gains the stability that we all desire and we are giving it our full support as an industry and as a company. It’s crucial that we have currency stability because if we pay for services such as labour in foreign currency, we get out of league with our competitors from other countries.

“It’s important to get to a point where labour costs are not spiralling on foreign currency, but we have the stability with the local currency where when we add up all the costs such as logistics, energy and labour we can say our starting point is good enough to face competition through imports,” noted Mr Sigei.

“Once the currency is stable, it means that our manufacturing sector would be much stronger and we start to see a much higher component of the Gross Domestic Product.”-chroncile