Zimbabwe prepares for common market

Zimbabwe will soon put in place strong trade measures in preparation for the liberalization of the common trade market by 2008, a local newspaper reported on Monday.

The Herald quoted the Minister of Finance Herbert Murerwa as saying that with an abundance of a high quality human resource base, fertile soils, vast natural resource base and an excellent communications system, Zimbabwe has potential to be a leading exporter in the region.

Murerwa said Africa, in its bid to create an internationally competitive trade region, will by 2008 introduce a customs union that will advocate for free trading among its members.

Unfriendly trade barriers like huge export fees will be removed, trade policies harmonized and the free movement of goods encouraged, he said.

This development will provide member states with a platform to increase their exports, penetrate regional marketing and contribute to national development, he added.

Concern has, however, been raised over the preparedness of local companies to withstand stiff competition from rival firms when the common market starts operating, the minister said.

"There is great need for Zimbabwe to prepare itself for trade pressures that will come with the introduction of a common market by 2008," Murerwa said. "Some measures have already been taken note of in the fiscal and monetary policies but a strong public and private sector partnership would make the country more prepared for 2008."

He said an improvement in agriculture would allow Zimbabwe to maintain its regional stronghold on farming exports.

Constant supplies of fuel and power would present local firms with an opportunity to boost production and expand operations into the region well ahead of the customs union in 2008, Murerwa said.

An improvement in foreign currency supplies would give local firms the economic muscle they need in trade competition, he said.

He urged the private sector to assist the government in formulating appropriate strategies to ensure that local businesses would not be pushed out of trade by more organized nations.

"We are also going to undertake capacity building and training workshops to educate our people on competitive business strategies, " the minister said.

He said institutional policy frameworks would also be strengthened to enable the country to maintain its trade edge over other nations in 2008.

Source: Xinhua