Ramp up domestic productivity: ED Launches national trade, export policies ‘No going back on Zim-dollar usage’
PRESIDENT Mnangagwa yesterday officially launched the Zimbabwe National Trade Policy and the National Export Strategy Policy aimed at rejuvenating domestic production towards export-led economic growth and increasing the country’s foreign currency earnings.
The Ministry of Foreign Affairs and International Trade developed the two policies to buttress the new dispensation’s desire for a transformed, dynamic and internationally-competitive economy, driven by robust domestic and international trade. The move follows a realisation that Zimbabwe’s trade potential has not been fully tapped to enable the country to meaningfully gain from trade.
The two policies are anchored on the need to balance the country’s trade interests by strategically opening up for business to promote mutual trade and investment. This takes into cognisance the challenges that have continued to impact on local industry, and the country’s commitments to bilateral, regional and multilateral trade commitments.
President Mnangagwa, who also PRESIDENT Mnangagwa yesterday directed all businesses in the country to comply with the new monetary policy regulations as there is no going back on the use of the Zimbabwe dollar for all local transactions.
Addressing local and international business executives at the 2019 ZimTrade Annual Exporters’ Conference in Bulawayo, the President said Government was strengthening its monitoring and compliance systems to buttress the use of local currency.
“In line with our country’s laws, all companies must insist on the use of our local currency for all local transactions,” said President Mnangagwa.
“Going forward, Government will continue to strengthen monitoring and compliance mechanisms.”
The return of the Zimbabwe dollar has become a topical issue among locals and abroad since its re-introduction in June this year, as people seek to gain an understanding of its
officially opened the 2019 ZimTrade Exporters’ Conference in Bulawayo, said the inability to generate adequate exports was negatively affecting other sectors of the economy and compromising availability of other essential commodities and services.
“There is an urgent need for both the public and private sectors to synergise our efforts and collectively take appropriate steps to boost our country’s exports, which is the most sustainable way to stabilise and grow our economy,” he said.
“The need for increased diversified exports of value-added goods and services, as opposed to the present reliance on the exportation of primary commodities, is now urgent and implications on the economy. In particular, the public has raised concern about the impact of the policy shift on their earnings, spending power and general livelihood.
Government issued Statutory Instrument (SI) 142 of 2019, which abolished the multicurrency system and designated the Zimbabwe dollar as the sole currency in the country with effect from 24th June 2019.
Under the new regulations, bond notes and coins as well as electronic currency have been designated as Zimbabwe dollar. The law, however, maintains domestic nostro-foreign currency for effecting foreign payments as well as maintains import duty or Value Added Tax for luxuries in foreign currency.
The policy measures also entail that economic agents can hold foreign currency in nostro-accounts and free funds as before but will need to change the foreign currency in local banks and bureaux de change into local currency for domestic transactions. Individuals and corporates can, however, make foreign payments using funds in their FCAs. Also, citizens can still receive remittances sent as foreign exchange through registered money transfer agencies.
imperative.” He said there was a need to inculcate an inclusive culture of producing for exports amongst all producers, particularly the small to medium enterprises (SMEs). As such, he said, women and youth-owned businesses must be assisted to increase their capacities to innovate and effectively participate in the on-going export drive.
In line with the devolution mantra and this year’s conference theme “Rethink, Reform and Export”, the President directed provinces to identify and play a leading role in economic activities in their regions by ensuring that every citizen participates in growing exports and the economy at large.
“Provinces are, therefore, encouraged to develop export development strategies
and plans aligned with the National Export Strategy (2019-2023) and the Zimbabwe National Trade Policy (20192023), albeit based on their respective resource endowments,” he said.
In that regard, the President challenged provinces to tap into ZimTrade competencies in developing their export initiatives as well as influence setting of export targets for companies at district and provincial levels. He stressed the need for increased collaboration in implementing necessary reforms to facilitate growth of exports, which requires constant dialogue in addressing issues highlighted under the Rapid Results Initiative on ease of doing exports business.
“We must all work with unity of purpose to facilitate trade and investment as well as ensure trade policy predictability and sustainability. To realise such export growth, we can no longer afford to work at a slow pace, everyone has to move with speed in their areas of responsibility,” said President Mnangagwa.
In view of the forthcoming summer cropping season, the President implored farmers to produce enough for national food security as well as for exports. He encouraged producers at every level to aim to have a minimum component of their total output going towards exports after satisfying local demand.
The President said the effects of climate change coupled with the continued illegal sanctions have hampered Zimbabwe’s market access, access to credit finance and processing of international payments.
“Our current position, therefore, calls for robust, innovative, collaborative strategies and efforts to build productive capacity and generate value added exports,” he said.