Published by the government of Zimbabwe
9 October 2008
Harare — LOCAL companies have been urged to revitalise their operations through strategic alliances to remain competitive as they prepare for the forthcoming Common Market for East and Southern Africa summit.
ZimTrade chief executive officer Mr Herbert Chakanyuka says local companies should be proactive and prepare for the 13th Comesa Summit of heads of state and Government to be held from 25th of next month to the 8th of December.
"As preparations for the summit gather momentum the coming on board of the Comesa customs union will also benefit Zimbabwean companies in acquiring raw materials at affordable prices," he said.
He added that the customs union provides an opportunity for companies to export and import products in the region under a common tariff of zero per cent for raw materials.
Mr Chakanyuka continued: "Within the Comesa region, there is not much threat in terms of industrialisation to Zimbabwe. We are much more developed than the rest of them and as result the level of industrialisation also gives us that strength within Comesa to move within the customs union.
"We have the infrastructure to weather the economic storm and should only work on the supply side constraints. Local companies need to embrace survival strategies so that they would be able to compete at regional levels.
"All companies, should go into strategic alliances."
The Comesa summit will be held in Victoria Falls under the theme "Consolidating regional economic integration through value addition, trade and food security."
The customs Union, which will make the regional bloc a free trade, will guarantee preferential rates to the country's exports.
Comesa is a preferential trading area with 20-member states and was formed in December 1994, replacing the Preferential Trade Area, which had existed since 1981.
Nine of the member states formed a free trade area in 2000, with Rwanda and Burundi joining the FTA in 2004 and the Comoros and Libya in 2006.
Comesa is one of the pillars of the African Economic Community.
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