Current price dynamics in the economy indicate that locally manufactured products are relatively cheaper compared to imported products, a development which speaks volumes of positive effects of some policy initiatives and furthermore the enhancement of local productivity.
A ZBC News survey in Harare today indicates that most consumer goods produced locally are on average between 30 and 60 percent cheaper than imports.
According to Zimbabwe National Chamber of Commerce (ZNCC) CEO, Mr Christopher Mugaga the current scenario is a direct outcome of basic commodities duty now payable in foreign currency where it becomes more expensive to import and this inevitably gives local producers an advantage in terms of pricing models.
“These are positive indications by any economic standard where local products are priced lower than imported goods. This implies that policy initiatives are starting to bear fruit by deterring the importation of products,” he said.
“When foreign products are crowded out, this increases economies of scale for local producers as well as opening downstream and upstream economic linkages across the production chain of which this is what Zimbabwe needs right now,” added Mr Mugaga
According to Mr Mugaga, sustaining the current scenario in the market will also lessen pressure on foreign currency as demand for imported goods will decrease, and this is happening at the right time when the country is launching its local content policy which will solidify these gains.