THE Confederation of Zimbabwe Industries (CZI) says the country’s economy should embark on an aggressive import substitution drive in view of Covid-19 as some countries are now banning certain exports to supply their own local industries and domestic markets.
“It is now imperative for the Zimbabwe economy to embark on an aggressive import substitution drive in view of Covid-19 as some countries are banning certain exports to supply their own local industries and domestic markets, especially essential raw materials and Covid-19 related products,” the CZI said in a recent statement.
According to The Trade Dimensions of Covid-19 on Zimbabwean Industry–Import Reliance of the Sub Sectors & Opportunities for Local Production of Raw Materials survey jointly conducted by the CZI and ZimTrade in May 2020, import substitution will ensure that products are made locally through a value chain approach, local content policy implementation as well as innovation and embracing new technology.
The survey results illustrate the need to achieve self-sufficiency and self-reliance in the production of raw materials as well as finished products because globalisation is under threat.
The survey found that countries were moving away from globalisation to regionalisation and to greater extent nationalism.
“As Zimbabwe pursues its developmental aspirations, there is a need for collaboration between industry and tertiary institutions to boost production and productivity,” the CZI said.
“However, a friendly doing business environment that fosters investment is essential if the local economy is to successfully promote local production of raw materials and finished goods for the domestic market as well as exports.”
CZI called for a credible and consistent policy framework which creates a stable macro-economic environment that encourages private investment.