cde larry mavhima 12.10.10.jpgThe business community has urged the government to come up with subsidies for the local industry to ensure that they remain competitive on the regional market against the prevailing high utility tariffs.

 

The call by the business community comes on the backdrop of high utility bills prevailing in the country, which have rendered the local industry less competitive on the international market resulting in tumbling export receipts.

 

Zimbabwe National Chamber of Commerce Harare branch Chairperson, Mr. Davison Norupiri said his organisation has engaged utility providers in a bid to reach a compromise on high tariffs, with rentals going up three-fold quarterly, thereby affecting competitiveness on locally produced goods on the regional market.

 

“Industry is still facing constraints, hence utilities remain high despite being benchmarked on other countries which have sound economic economies,” said Mr Norupiri.

 

Parliamentary Portfolio Committee on Parastatals and State Enterprises Chairperson, Cde. Larry Mavima said government should allow other independent producers to come on board to enhance competition that translates into low prices.

 

High charges on water, electricity and rentals have adversely affected the performance of the local industry on regional markets.

 

business infrastructure 12.10.10.jpgUtility providers have been on the defensive side, arguing that tariffs are based on regional parameters though observers argue that the country’s economy is not on the same level with regional economies.