Trade and Industry

Monday, 02 February 2009

Linkages between Trade and Industrial Policies: The Case of Zimbabwe

  • Year: 2009
  • Organisation: TIPS
  • Author(s): Evengelista Mudzonga
  • Countries and Regions: Zimbabwe

This paper looks at the nature and extent of linkages between trade and industrial policies in Zimbabwe. The paper establishes that the trade and industrial policies are interlinked in Zimbabwe. The study indicates that trade policy is one of the implementation strategies of the industrial policy - further illustrated in this paper specifically using the example of the clothing and textile industry. The policies are strongly linked in that one focuses on production capacities and the other provides a platform for the exchange of the goods produced. Also, the paper highlights the fact that the two policies are dependent on regional integration.

The paper recommends that the country needs to create a conducive macroeconomic environment for the economic agencies. It is critical to restore and increase the country’s normal capacity utilisation and other sectoral linkages such as the agriculture, mining, tourism and construction which have been under severe stress in the past ten years. The paper suggests that while a strong focus has been placed on priority industries, the country must also give priority to other products.