The countryâ€™s export revival strategy is failing to take off due to funding constraints and limited production capacity for local companies amid calls for Government to source cheap funds in the form of credit lines.According to findings by the Parliamentary Portfolio Committee on Industry and Commerce, the export revival strategy which is among other factors expected to restore business confidence in the export sector is failing to achieve its intended aims due to limited production.
Chairman of the committee, Cde William Mutomba revealed that stakeholders are worried about subdued productivity levels which have resulted in limited export volumes with official statistics showing that the country is importing more than exports on the back of a US$1,3 billion balance of trade deficit.
â€œWe are failing to increase exports and this is a cause for concern to the country,â€ said Cde Mutomba.
Business Council of Zimbabwe Technical Secretary, Mr John Mufukare said while the export revival strategy is a noble idea, limited funds continue to hinder the success of the policy.
â€œWe are concerned with the depressed productivity levels on the back of limited output,â€ Mr. Mufukare said.
Government launched the export revival strategy to assist companies in restoring viability and increasing exports to regional and international markets.
However, productivity challenges in the form of old plant equipment and machinery, low effective demand, financial constraints, high competition from imports and high costs of borrowing have resulted in limited production and export volumes.