Government has urged industry to secure key raw materials locally which will stabilise prices of basic commodities.
Zimbabwe is facing a sharp increase in prices of basic commodities due to lack of working capital and imported inflation arising from increased costs of raw materials from Eastern Europe which is engulfed in a war.
Industry and Commerce minister Sekai Nzenza told Business Times on the sidelines of the 2022 Zimbabwe National Chamber of Commerce annual congress that localised production would reduce pressure on the country’s import bill which hovers around US$1bn.
“Manufacturers should identify the key raw materials in their line of work, for example cooking oil, hence companies should help on the growing of soyabeans and other edible oil extracted crops.
“The industry should utilise the soyabean that we have in the country to reduce imports. This is a short term and long term strategy that works as a key mitigation measure to slow down the increasing prices,” Nzenza said.
She added:”We are looking at increasing production and processing of the raw materials to finished products but we need that raw materials to come from the outgrower.
“We need more import substitution models to reduce costs.”
The industry also is facing a huge working capital challenges emanating from an increasing allotment backlog at the foreign currency auction system.