Industrialists said yesterday that the decision by Government to lift the ban on the importation of some basic commodities will cripple the revival of the manufacturing sector and threaten jobs.

The shortage of basic commodities as a result of panic buying during the past two weeks has prompted Government to lift the ban on the importation of specified basic commodities.

Under Statutory Instrument 122 of 2017, individuals and companies with offshore and free funds are allowed to import specified basic commodities that are in short supply due to retailers’ speculative tendencies, hoarding and panic buying by consumers.

The Confederation of Zimbabwe Industries (CZI) president Mr Sifelani Jabangwe said the local manufacturing sector was committed to the revival of the economy and was therefore disturbed by Government’s decision to lift the ban on importation of basic commodities.

“The lifting of this protection, which has helped to revive the economy during the past three years, makes us extremely worried. For example, some companies in the agro-processing sector had started outgrower programmes with farmers and in the event that their products threatened, the development will reverse the gains of the protection measures,” said Mr Jabangwe.

He said many companies had stopped retrenchments because of improved production capacity following Government ‘s move to protect the local manufacturing industries.

“We know the thinking is that bringing in imported goods will be cheaper but what should be appreciated is that at times local manufactuturers were failing to meet demand because of shortage of foreign currency to import the required raw materials,” he said.

Mr Jabangwe said finished products require even more foreign currency than what is needed to import raw materials.

“It is our fear that the price of goods in the market will actually increase and also the demand for forex is going to increase, which will fuel the parallel market.

“We cannot realise Vision 2030 if we do not revive industries in order to guarantee economic growth.

“Flooding the country with imports is retrogressive and this should be urgently addressed,” he said.

Asked about the immediate solution to the prevailing economic challenges, Mr Jabangwe said the issue has to do with the supply side.

“The solution is to give more forex to producers so that they produce enough to meet demand and at the same time protecting jobs.

“At the moment manufacturers are only getting 30 percent of their requirements. The companies have the capacity to meet demand for most commodities and all that is needed is to allocate them adequate forex, ” he said.

Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter chairman Mr Godwin Muoni however said it was necessary for Government to lift the imports ban given the prevailing situation.

“Following our deliberations with the Government, it was agreed to temporarily lift the ban to address the shortages in the market,” said Mr Muoni.

Mr Muoni said local companies were failing to meet demand and Government had no option but to lift the ban to allow retailers to restock.

Association for Business in Zimbabwe (Abuz) chief executive officer Mr Victor Nyoni said the long term solution was for the country to be able to export in order to earn the much needed forex.

- Chronicle