Breaking News

Gono warns about SA imports

by Staff reporter
06 February 2013 | 7379 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

Comments

News Updates via Email

Email:

News Updates via WhatsApp

Latest News

Father of two convinced he's pregnant after homosexual encounter - A m...

by Staff Reporter | 11 February 2016 | 1960 Views

Would-be suicide bomber changes mind before attack - Abuja - Local Nig...

by Staff Reporter | 11 February 2016 | 1253 Views

Parly committee on gender speaks on Marriage Act - The Parliamentary ...

by Staff Reporter | 11 February 2016 | 650 Views

Bakeries import processed flour worth $48M - Zimbabwe's bread manufact...

by Staff Reporter | 11 February 2016 | 588 Views

Livestock under threat

by Staff Reporter | 11 February 2016 | 797 Views

Mat North schools hit all time lowest O'Level results

by Staff Reporter | 11 February 2016 | 1425 Views

'When I die, Zimbabwe will be free' - The late ZANLA supremo General J...

by Staff reporter | 11 February 2016 | 4947 Views

Mugabe order Zanu-PF members to stop abusing social media

by Staff reporter | 11 February 2016 | 1386 Views

Family accused of witchcraft - ANGRY villagers chased away four famili...

by Staff Reporter | 11 February 2016 | 1794 Views

Man sentenced to 20 yrs for defiling daughters

by Staff Reporter | 11 February 2016 | 2208 Views

Woman wants her gun confiscated by police back - PHILISIWE Cele wants ...

by Staff Reporter | 11 February 2016 | 1506 Views

Zanu-PF to take over Harare - Zanu-PF Harare political commissar Shadr...

by Staff reporter | 11 February 2016 | 1929 Views

Fed-up teachers to toyi-toyi - Zimbabwe's rural teachers say they will...

by Staff reporter | 11 February 2016 | 1705 Views

More purges loom in MDC - Months before the Movement for Democratic Ch...

by Staff reporter | 11 February 2016 | 1044 Views

War Veterans develop cold feet - Boisterous fighters of the liberation...

by Staff reporter | 11 February 2016 | 1960 Views

'Shut up,' says Grace Mugabe - First Lady Dr Grace Mugabe says Zanu-PF...

by Staff reporter | 11 February 2016 | 2488 Views

Mugabe slates feuding bigwigs - President Mugabe yesterday condemned P...

by Staff reporter | 11 February 2016 | 1046 Views

G40 campaigns for Madzongwe - Zanu-PF bigwigs opposed to embattled Vic...

by Staff reporter | 11 February 2016 | 1498 Views

Chinyoka now a legal nuisance - A UK based Zimbabwean lawyer and gover...

by Tafara Shumba | 11 February 2016 | 1743 Views

Government is prepared for the natural disaster - Watching Vice Presid...

by Rufaro Mufundirwa | 11 February 2016 | 1230 Views

UK-based Zimbo quits job to 'sing for God' - A UK-based Zimbabwean pro...

by Xolisani Nyathi | 11 February 2016 | 2336 Views

Sex worker screams rape as married man fails to pay for services - A M...

by Melody Baya | 11 February 2016 | 3553 Views

Chief Sibasa's methods irritate parents - CHIEF Sibasa's popularity ra...

by Kamangeni Phiri | 11 February 2016 | 2000 Views

RBZ making all the right noises but… - The Reserve Bank of Zimbabwe ...

by Vince Musewe | 11 February 2016 | 936 Views

Tsvangirai invades Masvingo - MDC-T leader Morgan Tsvangirai is in M...

by Staff Reporter | 11 February 2016 | 1911 Views

Private school likely to increase fees - PRIVATE schools could be forc...

by Auxilia Katongomara | 11 February 2016 | 2863 Views

Church members nabbed for digs up grave in-search of 'riches'

by Walter Mswazie | 11 February 2016 | 2858 Views

Magaya summoned over 11 deaths

by Patrick Chitumba | 11 February 2016 | 3224 Views

Zanu-PF politburo bans social media abuse

by Tendai Mugabe and Felex Share | 11 February 2016 | 3264 Views

Entertainment

Cont Mhlanga retires as wife takes over

by Bongani Ndlovu | 11 February 2016 | 2544 Views

Trevor Dongo's marriage collapses after 7 months

by Staff Reporter | 09 February 2016 | 6543 Views

1ns and 2s with DJ-Sticha - Business Advice for Aspiring Musicians

by DJ-Sticha | 08 February 2016 | 1478 Views

Double-decker bus blown up in London for 'The Foreigner'

by Staff Reporter | 07 February 2016 | 4610 Views

Every 12 hours a new artist is born into Zim's heavily contested gospel music industry

by Maxwell Teedzai Entertainment in Harare | 07 February 2016 | 2005 Views

Dog eat dog @ #NAMA2016 - THE sturdy list of nominees for the 15th edi...

by Prince Mushawevato | 07 February 2016 | 1344 Views

Bulawayo Music Awards appeal for support - The Bulawayo Music Awards h...

by Stephen Jakes | 05 February 2016 | 1569 Views