Captains of industry welcome budget statement

CAPTAINS of industry and commerce have welcomed the Government’s decision not to
renew the suspension of duty for basic commodities saying this would spur the growth of local producers through enhanced market share.

In May this year Government suspended duty on basic commodities such as cooking oil,
sugar and maize meal to cushion Zimbabweans from price shocks occasioned by geopolitical developments in Europe and speculative market behaviour, which caused price
increases and artificial shortages.

The import duty suspension was aimed at ensuring access to affordable basic
commodities following a substantial increase in prices of locally manufactured products.

CONFEDERATION of Zimbabwe Industries (CZI)
However, in his 2023 national budget presentation last Thursday, Finance and Economic
Development Minister, Professor Mthuli Ncube, said the suspension of duty, which
expired on 16 November 2022, will not be extended.

Reacting to this, Confederation of Zimbabwe Industries (CZI) president Mr Kurai
Matsheza said the move will help local industries to grow and increase their capacity
utilisation.

“As industry, we welcome the budget statement, which indicated the suspension of duty
on basic commodities, which expired on the 16th of November will not be extended or
renewed,” he said.

“This will ensure that local producers of those commodities are protected against
imports.

“It will certainly improve capacity utilisation in those firms. As a country, we have been
battling with foreign currency shortages.

“This action will save some foreign currency and hence provide some relief to the
economy.”

Non-renewal of suspension of duty for basic commodities is also Government’s effort to
promote industrialisation through import substitution.

Under the National Development Strategy (NDS1), the country prioritises value chain
development where 10 priority value chains have been identified for industrial growth
and structural transformation.

The targeted value chains include fertiliser, pharmaceuticals, cotton, sugar, leather,
metal casting, soya bean and dairy value chain.
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Under the National Development Strategy (NDS1), the country prioritises value chain
development where 10 priority value chains have been identified for industrial growth
and structural transformation.-Chronicle.cl.zw