adminWalter Nyamukondiwa Chinhoyi Bureau
The Confederation of Zimbabwe Industries has called on local companies to leverage on currency fluctuations in neighbouring South Africa to retool their business processes. It said most companies were saddled with inefficiencies caused by antiquated machinery and limited financing options.
Addressing the Chartered Institute of Procurement and Supply conference recently CZI president Mr Busani Moyo said the economic environment where cost of borrowing was high called for industry to take advantage of the weakening rand to procure contemporary technology and machinery.
“Currently procurement is influenced by the technology that we have in our industries. Much of it is old and no longer efficient enough to keep the cost of production down,” he said.
“Our industry must take advantage of the stable United States dollar and leverage it against the weakened South African rand to buy machinery from that country. The time to do it is now because South Africa is a good source of current technology.”
The call comes at a time when some industries have been accused of contributing to the current energy crisis through use of inefficient machinery.
Some are said to be chewing as much 10 percent from the national grid which has left companies and residential users enduring up to 20 hours without electricity.
Mr Moyo bemoaned banks’ failure to offer loans at competitive interest rates saying that was contributing to an artificial liquidity crunch.
Deputy Chief Secretary to the President and Cabinet Dr Ray Ndhlukula said Government was playing its part in ensuring that industry operated in a conducive environment through reforms to the State Procurement Board.
“The State Procurement Board is one of the key institutions of Government, whose performance has a direct bearing on good corporate governance and quality service delivery in the economy,” he said.
Online Reporter