Raw Materials Dominating Forex allocation

BY ZBC Reporter

Raw materials are dominating the allocation of foreign currency with US$7.2 million channelled towards this productive section, however, economic analysts have called on investors to explore the production of raw materials as they present a lucrative market.

Statistics from the recently introduced market-based auction system reveals that three key sectors are in dire need of raw materials which according to economic analysts promptly opens a window for local investors to tap into this vast opportunity and import substitute.

Economist, Dr. Prosper Chitambara believes it is now the time Zimbabwe should initiate its industrialisation policy to efficiently and effectively utilise the available foreign currency.

“statistics released by the Reserve Bank of Zimbabwe following the second foreign currency auction present a huge opportunity for investors to seriously look into what constitutes these raw materials with the view of manufacturing them locally,” he said.

Another Economist, Mr Persistence Gwanyanya echoed the same sentiments saying of late goods and services produced in Zimbabwe have higher proportions of foreign currency component in their production build-up.

“latest figures from the RBZ forex auction system makes a sad reading when you realize that almost 50 percent went towards the procurement of raw materials when traditionally the country used to manufacture 90 percent of its raw materials requirements however this also spells out various investment opportunities in the economy,” he said.

As Zimbabwe marches towards the attainment of its economic goals import substitution will play a pivotal role.