Steel Industry Likely to Play Critical Role in Reducing Import Bill

SEATTLE (Scrap Monster): The Zimbabwean administration has emphasized on the need for resurrection of domestic steel industry. By curbing the imports of steel into the country, Zimbabwe could significantly reduce its import bills, noted Zim Trade- the country’s primary trade promotion body.

According to Allan Majuru, Chief Executive, Zim Trade, the recent measures adopted by the government are likely to empower the domestic manufacturing industry to compete with local and export markets. This in turn is likely to spur the country’s trade performance and thereby contribute to significant improvement in its trade balance.

The country urgently requires investment so as to find markets for locally produced goods. The country still makes use of obsolete machinery for production, which is cited as the main contributing factor to rising production costs. The existing facilities need to be fine-tuned by installing latest technology and equipment. As a result, the country could witness tremendous rise in manufacturing output. By way of investing in plants, Zimbabwe aims to curtail the imports of finished goods into the country.

Zim Trade urges immediate government intervention in making exports much easier. Several statutory amendments tend to constrain export trade. The new administration has taken measures to successfully reduce or remove five out of the 24 amendments identified to slow down export trade. This includes removal of export permit requirement for a wide range of non-strategic products. Further streamlining of export regulations will stimulate export business, Majuru added.

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The country’s primary focus should be on improving production efficiencies of its plants and quality of the products that come out of these plants. The substantially high cost of trading can brought down through promotion of intra-Africa trade. The formation of African Continental Free Trade Area (AfCFTA) will be a major step in that direction, Zim Trade noted.