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Utilise Foreign Currency Auction For Resource Recapitalisation – ED

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By Staff Reporter

PRESIDENT Emmerson Mnangagwa has implored private companies to continue utilising the foreign currency auction system to access resources for recapitalisation, modernisation, and retooling their businesses.

He said this while touring industries in the eastern border city of Mutare Wednesday.

Mnangagwa, who was accompanied by ministers Sekai Nzenza (Industry), Oppah Muchinguri (Defence), Monica Mutsvangwa (Information), and other senior government officials, visited the Wattle Company, Willowton Group, and Mega Market.

Wattle Company deals in timber production while Willowton Group and Mega Market are involved in fast-moving consumer goods sector.

Following a volatile parallel market on the foreign exchange rate last year, the government moved in and introduced the auction system manned by Central Bank.

The move saw the stabilisation of the foreign exchange rate and prices of goods and services, with Mnangagwa urging investors to take advantage of the system and increase production.

“Companies are urged to continue utilising the foreign currency auction system to access resources for recapitalisation, modernisation, and retooling of their entities,” he said.

He also challenged the private sector to continue exercising prudence and discipline in their dealings towards their consolidating the successes of Zimbabwe’s ongoing economic reform agenda.

“I challenge the private sector to continue exercising prudence and discipline in their dealings towards consolidating the successes of the ongoing economic reform agenda,” he said.

Mnangagwa further applauded the industry sector for a positive response to the Import Substitution Strategy.

“In line with government’s private sector-led development agenda, I applaud industry for its positive response to the Import Substitution Strategy. Despite the decline in global economic growth projections due to Covid-19 pandemic, the strategy is projected to result in tangible economic strides by 2025, through accelerated production and productivity growth,” said Mnangagwa.

“I thus urge Mega Market, Willowton, and The Wattle Company among others, to continue supporting local supply chains and this will have multifaceted benefits including improving the quality of life of our people.”

He said the proximity of Manicaland province to the eastern coastline must translate to greater access to regional and continental markets as well as increased exports for various companies.

“I, further, exhort players in the private sector to appropriately position their products with regards to regional and international production, productivity, and pricing trends for enhanced competitiveness.

“Furthermore, innovation and continuous improvement are fundamental factors that must be consistently pursued,” he said adding his government was aware of the challenges faced by industry including Mutare-based companies.

“Government is indeed alive to the challenges that are being faced by industry, including the companies we have visited today (Wednesday).”