Local products key to economic growth

EDITOR — Zimbabweans should play their part in economic recovery efforts instead of waiting for Government to come up with solutions all the time.

If Zimbabweans want the local industry to be back on its feet, then they should have a Zimbabwean orientation as they buy their wares.

There should be a bias towards locally produced products and increasing sales on Zimbabwean products.

If legally permissible, the Buy Zimbabwe campaign should be turned into a bill of law.

The monetary system should be revised so that locally produced goods should only be purchased by our local currency through an authorised dealership system.

The use of foreign currency to buy local goods should be outlawed and imports should be done at a heavy premium.

Zimbabwe may also need to re-introduce the local dollar as a fiat currency.

Fiat currencies work on confidence rather than gold reserves and the United States dollar is, itself, a fiat currency.

Growth in money supply may exceed growth in local productivity capacity and output. This will naturally create shortages. Shortages create an incentive for production and supply however there is need to control inflation but this should not be immediate priority as long as local economy is producing on the back of high demand.

Tax concessions and subsidies should be given to companies in a bid to encourage local production. Kudzai.