Govt to impose import licences to save industry – Bimha

via Govt to impose import licences to save industry – Bimha | The Source 

The government will introduce import licences on selected goods as part of measures to contain the country’s widening trade imbalance and protect the struggling local industry, the industry minister has said.

Zimbabwe’s trade deficit is seen widening this year, with import bill is seen reaching $8.3 billion from $7.6 billion in 2013 compared to exports of $5 billion this year, against the $4.43 billion achieved last year, widening the trade deficit.

Industry and Trade minister Mike Bimha told The Source by phone that tightening rules around imports would also suffocate the influx of cheap imported goods.

“We cannot be importing what we have, and soon the ministry will be introducing import licences on those selected goods,” said Bimha.

Anyone wishing to import the selected good will be obliged to apply for the import licence from the ministry.

Bimha said from the period of dollarisation in 2009 most companies have been importing even locally available products which he said was not sustainable for the recovery of the industry whose capacity fell to a third by mid-year last year.

 

 

COMMENTS

WORDPRESS: 6
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    Bimha is just telling the nation that soon the 2008 situation will be back.

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    mambo 7 years ago

    This is what happens when you have a Minister with absolutely no knowledge about his portfolio.

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    Tafadzwa 7 years ago

    The minister is being simplistic. He should demonstrate to us which local manufacturer is being unfairly pushed out by imports. Which local firm will replace the imports at the same quality and price ? The world over, it is quality and price competitiveness that should determine the survivability of a local firm. When the government tries to interfere with market forces then we are all headed to the shortages of 2007- 2008.We have here before, starting with the import licences of the 1990s, then price controls. Lean from the mistakes of Venezuela.

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    Cypriano 7 years ago

    Gentleman and ladies,those who are saying the minister is mistaken are wrong.Ask us who are in the industry we will tell you the negative impact of these imports.Take for example,Nivea and ingrams camphor creams which are both imported from south africa.these products alonbe have killed cosmetic firms in zimbabwe which produce equally good products but the local company can not break even because they pay duty on raw materials viz a vis a finished product that is imported which does not pay duty.our jobs are on the line gentlemen and very soon industry will collapse.kutengesa airtime kana vending does not pay a single cent as p.a.y.e to the fiscus thus the country does not grow.Bimha is very correct on this one!

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      Tfara 7 years ago

      Are you proposing gov bans these imports to force us to buy the overpriced local equivalent I.e. We the people must subsidize your jog or should government drop duties on raw materials and help local manufacturers bring down their prices and become more competitive once again and export more as before..??

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      smoko 7 years ago

      Ngavabvise the import duties on raw materials then so you can compete at par end up having expensive poor quality goods with no competition