adminTinashe Makichi Business Reporter.
Analysts have welcomed the move by the Confederation of Zimbabwe Industries to urge all multinational companies operating in the country to procure local raw materials in order to promote local industries.
Countries like Malaysia and South Africa have policies that urge all companies to procure locally produced products before resorting to imports.
In an interview with Herald Business yesterday, economic analyst Mr Witness Chinyama said local procurement campaigns have to be taken seriously because they form the basis of indigenisation and local economic empowerment.
“Multinational companies should start rolling out initiatives to procure locally available goods from the local industry so as to complement the tenets of the Buy Zimbabwe campaign.
“It is actually pointless to see companies importing chickens from Brazil when actually we have different local chicken producers who are finding it hard to get market for their chickens,” he said.
He said the issue of quality and standards made many companies to resort to importing raw materials and other materials yet it is their duty to set standards.
“Large companies should specify the standards that they want as well as quality.
“Through local procurement, employment creation would be enhanced as well as small and medium enterprises empowerment.
“From an economic point of view, Zimbabwe has the lowest unemployment rate because everyone has become an entrepreneur and the challenge of markets for their products remains the stumbling block to success hence local procurement should be the way to go,” said Mr Chinyama.
He also said before importing, the multinational companies should start by looking locally before resorting to importation.
Another economic analyst, Mr Eric Mvududu, echoed the same sentiments saying that Government should come up with initiatives that make sure the local industry is protected at all costs because it is the one capable of creating employment.
“If multinational or big local companies continue to import raw materials and other products, they will be promoting the external industry at the same time promoting external employment.
“Such a move is inimical to the development of the local industry therefore local procurement campaigns should be strengthened,” he said.
However, Mr Mvududu said to put local procurement as a policy will not be an intelligent move because it also has some negative effects.
“Both Government and the local industry have to make sure they up their game to ensure policies that protect the local industry through funding are
put in place in order to achieve maximum capacity utilisation,” he said.
Tourism and Hospitality Industry Minister Engineer Walter Mzembi said the move by CZI is commendable since it is one of the initiatives to empower the locals.
“The move is quite attractive but all we need is to fix our national pricing of local products so that it matches those within the region and internationally.
“The move is set to promote the Buy Zimbabwe campaign and what is only needed now is to
make sure our local industry produces the quality and standards expected at a price that is in tandem with others,” the minister said.
Zimplats is one of the first companies to come with the local procurement initiative whereby they started buying some of their mining equipment from local manufacturers. In the quarter to June this year, they paid US$50 million for the acquisition of goods from Zimbabwe.
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