Economic stability spurs business growth

City of Harare

THE Transitional Stabilisation Programme (TSP) has set a solid foundation for economic growth with local companies noting that the current economic stability is having a positive impact on business growth.

A recent tour of industry in Mutare by the Minister of Finance and Economic Development, Professor Mthuli Ncube, saw several firms speaking on their growth prospects in the wake of economic stabilisation measures implemented by government.

 Speaking to ZBC News the Chief Executive Officer for Willowton Group Zimbabwe Bruce Henderson said they are targeting to increase capacity utilisation by 30 per cent.

“We are targeting to increase capacity utilisation from 40 per cent to 70. The current economic stability being realised in the country has provided a further impetus towards business growth,” he said.

Quest Motors Corporation General Manager Tom Sarimana cited the promotion of local content as key in creating employment.

“We have capacity to employ up to 4 500 people and produce at least 10 000 vehicles per month. Currently we are operating at below five percent and we can greatly improve our capacity if there is a deliberate effort to promote local procurement,” noted Sarimana.

On issues to do with economic stability, Finance and Economic Development Minister Professor Mthuli Ncube  pointed out that the auction system is at present the main component promoting stability.

“The current stability is a result of support from business through the 20 per cent foreign retention. Once there is stability, other critical issues are fixed such as inflation. The fact that now the currency is stable you are able to plan. Economic stability has become government’s main objective. Government is not taking foreign currency retention for other issues but that money is being channelled towards the action system to promote stability,” he explained. – ZBC