Zim Business Community calls for speedy negotiations

CZI President - Callisto Jokonya

                                       Staff Reporter

HARARE-Zimbabwe's business community has thrown its weight behind the historic memorandum of understanding which was signed by the principals of the country's main political parties on Monday.

President Robert Mugabe and leaders of the two Movement for Democratic Change formations signed an MOU to map out a framework for formal talks to find a solution to Zimbabwe's crisis.

Confederation of Zimbabwe Industries (CZI) President Callisto Jokonya told journalists in Harare that the business community welcomes the signing of a pact between the main political parties to begin a process that could bring solutions to the country's deepening crisis.

"The CZI and the entire business community welcome this agreement to start the dialogue process that will lead to the resolution of our problems, which have serious political, economic, social, as well as humanitarian dimensions," he said.

He added that business hopes for a speedy finalisation of the negotiations and that the constructive spirit of selflessness and national harmony that was witnessed at the signing will prevail.

Zimbabwe's industry has been adversely affected by the political environment that has been prevailing in the country in the last eight years.

Industrialists say the sector is now operating at below 20 percent capacity where huge infrastructure is dormant following the closure of several entities owing to viability constraints.

Former president of CZI and CEO of listed dairy products manufacturer Dairiboard Zimbabwe, Anthony Mandiwanza said the business community acknowledges the signing as a positive step for economical revival.

"The MOU marks a new dispensation in which we hope for a positive outcome. It has become difficult for us to make decisions and to make short and long term plans. You cannot make decisions for new investment in a hostile economic environment," he said.

Commenting on government's decision to import basic commodities to be availed at low prices, Mandiwanza said it is a shame for both the business community and government as it has left local industrial infrastructure underutilised.

"The importation of basic commodities that can be manufactured locally is an indictment on both business and government while local industrial infrastructure is being underutilised, we have not failed to produce as industry but it has been difficult to operate under the current economic conditions," he said.

Last week President Robert Mugabe launched the Reserve Bank of Zimbabwe funded National Basic Commodities Supply Enhancement Programme meant to distribute monthly packs of the most essential groceries at a lowly affordable price.

The programme has been met with mixed feelings and people are questioning whether the central bank will be able to sustain it.

Some business leaders say the RBZ should have concentrated in reviving local industry than to focus on half measures that are most likely to cost the economy.

Zimbabwe is currently going through a rough patch with a record inflation of more than 2 million percent.

Much of the problems have been compounded by the cut off of balance of payment support by international financial institutions such as the International Monetary Fund and the World Bank.