South African products dominating local markets at the expense of local manufacturing companies

South Africa remains the largest competitor to Zimbabwe's manufacturing industry, accounting for 53 percent of the products on the local market amid calls for a relook at the country’s customs duty policy.

According to the Confederation of Zimbabwe Industries a combination of high production costs, old machinery and limited access to cheap loans has resulted in the local manufacturing sector failing to increase its domestic market share.

The industrial representative body says China is on the second spot in terms of goods within the local markets accounting for 36 percent, followed by India 15 percent, Brazil at 7 percent and Zambia contributing five percent.

A fiscal studies consultant Mr Elisha Tshuma says the government should review the current custom duties policy in the 2016 national budget to facilitate growth of local firms.

“The duty needs a review for the benefit of the government and other related parties,” said Mr Tshuma.

Zimbabwe’s industry is also failing to increase its domestic market share due to the devaluation of the South African rand and Zambian kwacha, the influx of cheap low quality imports as well as the attractiveness of the United States dollar to other regional players as a hedge against unstable currencies. ZBC News