Home » Business » ’Displacing Imports a Huge Challenge’

Displacing imports that have flooded the country on the back of a struggling manufacturing sector will be a huge challenge for local companies in the future, a top government official said on Tuesday. Industry and Commerce permanent secretary Ms Abigail Shonhiwa told the Senate Thematic Committee on Millennium Development Goals that lack of cheap long term finance remained a major obstacle for the recovery of industry.

Local industry, operating at below 40 percent capacity, requires more than $2 billion for retooling and working capital.

“A lot of products came in when industry was at its lowest,” Shonhiwa said. “Even when we will be producing, to displace those products will be a challenge.”

It is estimated that over 60 percent of goods sold in local shops are imports.

Ms Shonhiwa said local industry was still using antiquated equipment which made it costly to produce high quality and competitive goods.

She said local products need to conform to global standards to be competitive.

“With globalisation, we cannot afford to be inward looking,” she said.

“We have to look at the region and beyond the country, the region so we need to conform to international standards.”

Ms Shonhiwa said the government would soon introduce in Parliament, the National Quality Control Authority Bill, which seeks to establish an institution that enforces standards in the country.

The authority would determine the quality and standards of both imports and exports.

Establishment of the authority was mooted in the days of the inclusive government but was delayed due to bureaucracy.

Ms Shonhiwa said the government put in place measures to stimulate production and revival of the local industry in the 2014 National Budget.

She said among such moves was the introduction of tariffs for a number of products which were locally produced.

Ms Shoniwa bemoaned the porous borders which allowed even banned products to find their way into the country.

Source : The Herald

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