zimtrade.jpgGovernment has finalised the crafting of a Trade Development Policy which is expected to provide incentives for exporters in order to solve the widening trade deficit for Zimbabwe.

 

An increase in the volume of imports at the expense of exports has lead to the economy experiencing a trade deficit of at least US$1,3 billion and government through the policy seeks to provide cheap funding towards the recovery of export volumes.

The Minister of Industry and Commerce, Professor Welshman Ncube, says the Trade Development Policy is among other factors expected to facilitate the mobilisation of capital for exporting companies across the country.

“This policy will enable government to increase export volumes in line with policies to restore macro-economic confidence,” he said.

Zimbabwe’s export volumes have been subdued on the back of limited output as well as lack of funding resulting in government engaging the private sector on policies to restore export confidence.

Official statistics from the Ministry of Economic Planning and Investment Promotion show that although Zimbabwe’s export receipts increased in the third quarter to US$540 million, the import bill for the period under review was at US$1 billion creating a deficit of US$500 million amid calls by economic experts for an urgent capital rescue package for exporting industries.