Buy Zim: Co-operation, competitiveness critical

of US$557,6 million for the quarter is no joke by any standards.
Zimbabwean consumers have in a period of three months pushed US$557,6 million into foreign economies yet 96 percent of our population remains unemployed.
Imagine over 200 000 civil servants assured of a year’s salary because Zimbabweans choose to circulate as much dollars as possible in the local economy. Food for thought.
To strike our own local balance attention has to be paid to the three Cs, i.e. co-operation, competitiveness and consumption, which have been Buy Zimbabwe’s guiding principles from the start.
Co-operation at Government to business level seeks to address the numerous policy issues that have affected economic activity.
Zimbabwe needs to understand the effects of some of the trade agreements that have been signed by Government resulting in various policy inconsistencies.
Industry and Commerce Deputy Minister Mike Bimha says that the Industrial Development Policy belongs to business with Government as the implementing partner.
Buy Zimbabwe’s partnership with the National Economic Consultative Forum is strategic in bringing business and Government together to influence the policy framework.
Clearly, an effective policy framework has to be informed by economic intelligence.
Econometric surveys that estimate production functions and cost functions for firms, supply-and-demand functions for industries, income distribution in an economy, macroeconomic models and models of the monetary sector for policymakers, and business cycles and growth for forecasting are key.
Information derived from these models helps both private businesses and governments to make decisions and set monetary and fiscal policies.
Current figures from the Grain Millers’ Association of Zimbabwe show that 283 factories in the milling industry have been closed in the last two years resulting in unprecedented job losses because of unfair competition from South Africa millers.
The GMAZ is currently in talks with the National Chamber of Milling of South Africa to try and prevent the latter’s members from dumping inferior maize meal and wheat flour in Zimbabwe.
However, the association still sees some policy gaps locally. The GMAZ views the dumping of inferior products as a result of Government’s lifting of customs tariffs on maize meal and flour imports in an attempt to mitigate the food crisis that obtained in 2008.
This dispensation seems to be presenting challenges to our agro-based economy and these imports have downstream effects on fertiliser, seed, packaging and the transport industries.
The textile industry in 1997 boasted 140 large-scale cotton growers and 190 000 small-scale growers producing 278 000 tonnes of raw cotton per annum.
In 2002 figures dropped to 12 large-scale growers and 204 000 small-scale growers producing 198 000 tonnes of raw cotton.
What I like is that the textile industry has taken steps to reverse the negative trend.
One of the efforts was the launch of a “Buy Zimbabwean Manufactured Textile Products Campaign” in 2009.
Action had to be taken after statistics showed that in just eight months leading to December 2009 almost 5 231 textiles employees had lost their jobs.
Further, local businesses need to focus on competitiveness. For products and services to be competitive businesses need regular insights on markets through retail audits.
The partnership between Buy Zimbabwe, the Marketers’ Association of Zimbabwe and research companies gives members a thorough understanding of retail product brand performance against competitors.
Retail audits are vital in formulating effective sales and marketing strategies. Attention also has to be paid to quality, packaging, branding and promotion.
It is unfortunate that at a time wool is in high demand Karina is failing to satisfy the market thereby opening up the market to an inferior Zambian product which is heavily criticised by consumers for breaking during knitting.
Since the Zambia brand deceptively looks like crylette the consumer is not in a position to differentiate the products.
Karina could do well with a distinct certification logo to differentiate its product.
Mr Admire Masenda, managing director of Karina Textiles, believes there are some underlying issues that have affected his sector.
It is true that when a giant sneezes everyone catches a cold. The poor performance and subsequent closure of wholesale giants Jaggers and Makro affected Karina’s distribution channel of its products to the consumer.
Buy Zimbabwe is promoting a local certification process that emphasises minimum quality stipulation, adherence to fair labour practice and demonstrable local content.
The insignia protects against counterfeiting and proudly marks the country of origin for the benefit of the consumer.
Mr Richard Zirobwa, Art Corporation boss, is threatened by counterfeit Eversharp pens from China.
Previously I have written about cheap clones of Mazoe Orange Crush. This act of cannibalism by some unscrupulous business people has led to serious price distortions with one product having two very distinct pricing structures. This ultimately creates confusion and is tantamount to consumer abuse.
In some cases the counterfeiting has reached dangerous levels.
We also read about the influx of counterfeit drugs.
The pharmaceuticals industry is under heavy siege. It is disturbing that counterfeit and expired drugs can be smuggled into the country and sold at premium prices.
The passing of the Consumer Protection Bill into law will give CCZ the power to take action when consumer rights are violated.
I have come to realise that consumers are not aware of the products that the country produces resulting in low consumption.
The Buy Zimbabwe Week which gives Zimbabwean products and services visibility will be structured as a week-long event that ensures that local businesses and consumers come into contact and products and services are visible.
Buy Zimbabwe is working on a magazine and website that will give prominence to local brands and influence consumer choice through awareness.
Perceptions on the market, for example, are that Quetech Holdings’ Powerbrite dishwashing liquid is inferior to Unilever’s Sunlight liquid soap yet Quetech Holdings used to produce for Unilever a few years back using a similar formulation.
Such perceptions can only be cleared when a company interfaces with its customers.
Till next week. God Bless.
For comments and contributions please feel free to contact us:
22 Broadlands Road
Mount Pleasant
Harare
Cell: 0772 714 233
Email: [email protected]/[email protected]