exports story.jpgGovernment is considering new export incentives through the mobilisation of about US$400 million to assist companies in procuring machinery.

The arrangement is being made on the back of a current US$1,4 billion trade deficit.

However, the Ministry of Industry and Commerce and the Ministry of Finance are in discussions with captains of industry and commerce regarding the mobilisation of the US$400 million aimed at helping export oriented companies with soft loans for working capital requirements.

Business Council of Zimbabwe Executive Secretary, Mr John Mufukare said while fresh export incentives are important, stakeholders are likely to experience challenges in mobilising funds.

“The major constraint is that of funding, so it remains to be seen how the country will raise the relevant capital,” said Mr Mufukare.

Official data from Zimbabwe Statistics Agency (Zimstat) shows that declared export shipments for the period 1 January to mid March 2012 increased by 6,38%, reaching US$584 million compared to US$549 million declared in the same period last year.

However, economic observers say there is need for government to introduce policies aimed at reducing the trade balance deficit.