Industry has responded positively to Government’s local content strategy with retailers now stocking up to 80 percent with locally produced goods, Industry and Commerce Minister Dr Sekai Nzenza said yesterday and Government was continuing to implement import substitution strategies.
Her ministry has been working with industry to maintain the general stability since June.
“Industry has responded to the Ministry’s local content strategy as witnessed by increased local sourcing of raw materials.
The commercial sector also had a positive response to the buy-local strategy which resulted in more than 80 percent of goods on the shelves of most retailers being locally manufactured.
“Government will therefore continue implementing the import substitution strategy as it is critical for increased local production, employment creation and stabilisation of prices on the domestic market,” she said.
The local content strategy was launched in July last year in order to cut down on imports, promote new jobs and support the growth of new industries.
Dr Nzenza said the foreign currency auctions introduced by the Reserve Bank of Zimbabwe had played a critical role in the stabilisation of prices.
“On average, industry requires US$100 million per month to import raw materials and the auction system has been sufficient to allow access to foreign currency to fund imports.
The amount traded on the system targeting SMEs has also assisted small traders.
Industry has reported increased capacity utilisation as a result of the auction system and business confidence has gone up,” Dr Nzenza said.
The minister said Government would continue implementing policies that would ensure the country achieve its targets of becoming a middle income economy by 2030.
Stability and growth of the economy will be maintained by continued implementation of development policies such as the Zimbabwe National Industrialisation Development Policy (2019 to 2023), the Local Content Strategy and the new National Development Strategy 1 (NDS1) (2021 to 2025) as well as other Government policies that aim to achieve Vision 2030 agenda.