The biggest restriction has been Statutory Instrument (SI) 64, which restricted importation of 43 products that have local equivalents.
Last year, imports closed the year at $6,3 billion.
Exports experienced a 6,9% decline to $3,36 billion from a previous of $3,614 billion recorded last year.
The downturn in overall export performance is on the back of a large section of the manufacturing sector not being able to export their wares.
Also, the country’s products are the most expensive in the Sadc region.
In the 2017 National Budget statement, Finance minister Patrick Chinamasa said the high import bill remained unsustainable.
“The prioritisation of essential imports, through implementation of such temporary imports prioritisation instruments as SI64 of 2016 in favour of promoting the importation of such critical imports as raw materials and replacement equipment is, therefore, central to the Zimbabwean economy contributing positively to regional economic performance,” he said.
“With regards to evening the playing field, initial results from an evaluation of the impact of SI64 indicate gains in capacity utilisation across sub-sectors such as milling and baking, food, fruits and vegetables processing. Others included iron and steel making, battery manufacturing, packaging, pharmaceuticals, and furniture manufacturing, among others.”
The government has come up with an import priority list, where priority in the allocation of foreign currency is given to the importation of essential products or services required by industry.
A 5% export incentive has also been rolled out to boost local production and increase exports.
The government has tried limiting imports, with a number of restrictions including SI 64 of 2016. Others are (SI) 6 and 126 of 2014, SI 18, 19, and 20 of 2016.
Manufacturers rely on about 68% of imported raw materials.
Since SI64 of 2016’s introduction, about a tenth of local manufacturers achieved 100% capacity utilisation.
Chinamasa said the government continued to monitor the impact of this instrument on investment into re-equipping, increased production and creation of employment.
“Under the prevailing multi-currency arrangement, export receipts represent the economy’s anchor source of the economy and banking sector cash and liquidity. The reversal of the worrisome decline in exports requires intervention measures to restore competitiveness and diversification of the economy’s export base across all sectors,” he said.
Chinamasa said this also included remittance of non-residents living outside the country.
Analysts believe imports might improve slightly than last year.
- Newsday