Breaking News

Gono warns about SA imports

by Staff reporter
06 February 2013 | 8332 Views
The governor of the Reserve Bank of Zimbabwe, Gideon Gono, has warned that the country's overreliance on imports from South Africa could undermine Zimbabwe's economic recovery prospects.

South Africa is Zimbabwe's largest trading partner, with trade between the two countries growing from R19.2bn in 2011 to R22.5bn last year - mostly in South Africa's favour.

"Exports realised over the period January to December 2012 amounted to $3.8bn, which compares unfavourably with imports of $7.5bn," Mr Gono said. "It doesn't require rocket science toappreciate the fact that where a country is relying more and more on importation of finished products, particularly those that it can produce on its own, is on a path of self-destruction and deindustrialisation."

Mr Gono, who presented the central bank's monetary policy statement last week, painted a grim picture of the country's economic state that reflected low exports, limited foreign direct investment and weak international commodity prices. The affected minerals included platinum, copper and diamonds.

Zimbabwe relies heavily on minerals for revenue generation.

Analysts have said the stalled economic growth was an indictment of the four-year-old unity government that has been fraught with political bickering and economic policy inconsistency.

Zimbabwe's trade deficit stands at $3.6bn and its manufacturing industry is reeling under the weight of imports from South Africa, which account for 65% of the total into the economy. As a result, industry capacity utilisation declined from 57% in 2011 to slightly under 44% last year.

According to the industry and commerce ministry, Zimbabwe's industry requires about $2bn for re-capitalisation after being decimated by hyperinflation in 2008.

Economics professor at the University of Zimbabwe Tony Hawkins said the economy was characterised by excess consumption spending by the private sector and the state, negligible savings, and an unsustainable balance of payments position.

The country's overall balance of payments remains in deficit and stood at $498m last year. Zimbabwe is further saddled with a $10bn debt. It owed the World Bank $1.2bn, the African Development Bank $500m, the International Monetary Fund $200m and the Paris Club of Creditors $3bn, among many others.




Trevor Maisiri, a senior analyst based at the Johannesburg office of the International Crisis Group, said yesterday that goods from South Africa would continue to flood the Zimbabwean market because they were cheaper. The Zimbabwean manufacturing sector is in decline and unable to meet local demand.

"Zimbabwe will need to resolve the current liquidity challenges, high interest rates, low volumes of capital and restrictive capital sources ," Mr Maisiri said. "However, these challenges are not merely operational, (they ) are structural and dependent on the overall political and economic landscape ."


Imports

Source: BDLive

Are housemaids an evil lot?

Yes
40.83%
No
54.17%
Not sure
5%
120

Comments

News Updates

Email:

Latest News

Joice Mujuru in $4 million chicken scandal

by Staff Reporter | 29 November 2014 | 3348 Views

Jabulani Sibanda arrested for undermining Mugabe

by Staff Reporter | 29 November 2014 | 5325 Views

Zim's political crisis: Who are the main players? - As the country's v...

by Peta Thornycroft in Harare and Aislinn Laing in Johannesburg | 28 November 2014 | 2949 Views

'Jabulani Sibanda arrested' - Rumour

by Concerned Citizen | 28 November 2014 | 4138 Views

Over 60 killed in Nigerian mosque attack

by Staff Reporter | 28 November 2014 | 1496 Views

Chinamasa's budget grotesque and incomprehensible to the youth of Zimb...

by Caston Matewu, Secretary General MDC UK & Ireland Provincial Youth Assembly | 28 November 2014 | 1158 Views

Mthwakazi activists case referred to ConCourt

by Court Reporter | 28 November 2014 | 1189 Views

Olivia Muchena, 4 others ousted - The Zanu-PF National Women's League ...

by Staff reporter | 28 November 2014 | 5872 Views

Zimbabwe goes down four nil

by Prosper Tsvanhu | 28 November 2014 | 1590 Views

Mugabe may you please stop harassing innocent MDC-T Cadres - Its very ...

by Prof Richard M Simango | 28 November 2014 | 2164 Views

Stray monkey gets into a house, sleeps in a family bed - BULAWAYO - T...

by Staff reporter | 28 November 2014 | 2787 Views

Another Mujuru daughter in truck scandal - A Harare woman claims she h...

by Staff reporter | 28 November 2014 | 3780 Views

Shock as 'ill' man digs own grave - IN a bizarre incident which has le...

by Staff Reporter | 28 November 2014 | 4345 Views

'We don't owe Tsvangirai an apology' - Mbeki - Two weeks ago, the Mail...

by Thabo Mbeki | 28 November 2014 | 3317 Views

Bid to stop Zanu-PF congress - Some war veterans and youths sympatheti...

by Staff reporter | 28 November 2014 | 7640 Views

'Police BMW cause accident in town' - Photos

by Concerned Citizen | 28 November 2014 | 7855 Views

'Tsvangirai is better than ousted Zanu PF leaders' - HARARE - Zanu PF ...

by Staff Reporter | 28 November 2014 | 3787 Views

MDC-T official dies in bus accident - Shushine Siyamandanda dies ...

by Staff Reporter | 28 November 2014 | 6077 Views

Open letter to Thabo Mbeki on Zimbabwe

by Vincent Musewe | 28 November 2014 | 3764 Views

Purged Zanu-PF leaders can bounce back, analysts - THE ongoing purge o...

by Sports Reporter I Agencies | 28 November 2014 | 4797 Views

Unpaid, hungry man hits boss with a brick

by Staff reporter | 28 November 2014 | 3783 Views

Mugabe 'mutilates' Zanu-PF constitution

by Staff reporter | 28 November 2014 | 2861 Views

Gumbo savages Mugabe

by Staff reporter | 28 November 2014 | 7556 Views

'Chombo rigged central committee nominations' - Mashonaland West Zanu...

by Staff reporter | 28 November 2014 | 2878 Views

Chinamasa chides civil servants

by Staff reporter | 28 November 2014 | 3697 Views

Chinotimba bounces back

by Staff reporter | 28 November 2014 | 5494 Views

Entertainment

Zimbabwe has a good chance at winning BBA Hotshots - As the Big Brothe...

by 360nobs.com | 27 November 2014 | 1935 Views

Ivy Kombo-Kasi graduates with a Masters degree in International Commercial Law

by Jonathan Mbiriyamveka | 26 November 2014 | 4966 Views

Zimbabwean gospel musician goes live in South Africa on Saturday 29 No...

by Staff reporter | 26 November 2014 | 2062 Views

Re-brand ZBC

by Staff reporter | 25 November 2014 | 2572 Views

Express Links Money Transfer and Kenya Airways to Sponsor ZIMAA UK 201...

by Masimba Makasi | 25 November 2014 | 2126 Views

Namibian woman dances to Shona song - Video - ...

by Staff Reporter | 25 November 2014 | 4799 Views

Generations returns

by Staff reporter | 25 November 2014 | 4609 Views
iBlog

Positions To Make Female Orgasm Easier During Intercourse

some women are fortunate enough to be able to climax easily, and in almost any sexual position. the majority of women though, sometimes find it difficult to orgasm especially when they are with a partner. sometimes this difficulty is just a result ... Read More
adoniadennis 12 May 2014 ago

Auslogics Boostspeed 7 - More Powerful And User-friendly Than Ever

Auslogics boostspeed 7 - more powerful and user-friendly than ever!wondering how to fix slow computer performance? experts recommend auslogics boostspeed 7 - the most comprehensive system optimization software! auslogics boostspeed 7 is here!the bran... Read More
ITnews 26 August 2014 ago