adminVandudzai Zirebwa Buy Zimbabwe
ZIMBABWE’S manufacturing sector is confronted with a myriad of challenges most of which are well chronicled. However, its rejuvenation is not solely dependent on their rectification but on addressing the demand side as well. While the sector has to contend with little financing, lack of raw materials and obsolete machinery among other challenges, it also has to contend with low demand for locally produced goods.
Several reasons have been forwarded for this trend, among them prohibitive pricing, unattractive packaging and the “foreign is better” mentality.
Resultantly, shelves in our local retail outlets are stocked largely with imports from South Africa. Though the retail sector has always indicated its eagerness to support economic growth through allocation of shelf preference to locally manufactured products, such keenness is always exhibited in their procurement practices due to a number of hindering factors relating to both the retailers and the suppliers.
The retail sector’s concerns are that local supply is not consistent and prices are untenable, particularly as the economy is characterised by consumers with generally low disposable incomes.
Since procurement is based on relationships and consistency, retailers opt to import in bulk at a fair price at the expense of local producers.
Though the retail sector’s argument is seemingly sound, its consequences are quite dire. The low preference for local products has led to low capacity utilisation, high levels of unemployment and has almost ground industry to a standstill.
It is needless to say the current market trends with regard to the consumption of importable commodities are not sustainable and not in tandem with the ongoing efforts to revive the economy.
As such, it is imperative that Government urgently crafts mechanisms or policies that will realign the economy’s consumption patterns with the country’s balance of payments position so as to generate a sustainable consumption culture that allows the economy to maintain itself and continually produce.
As Buy Zimbabwe, we view the creation of demand for locally manufactured products as a critical tool in unlocking the potential of the local industry.
Retailers should also support local manufacturers by giving our products shelf preference. In that regard, we will be hosting a Retailers and Manufactures Conference on Monday, October 14 at Sango Conference Centre, Cresta Lodge.
The conference is expected to engage the retail and manufacturing sectors in an open no-holds-barred discussion which will enable them to exchange information necessary to ensure that Zimbabwean products become more competitive, visible on the shelves so that they move fast.
The manufacturing sector should be applauded for making strides in ensuring that we have competitive local products on our shelves.
The locally produced Pure Drop cooking oil, which is priced lower than the South African Delight, comes to mind for not only being reasonably priced but for being well packaged.
If the retail sector were to give more shelf preference to local products, our economic fortunes would surely turn around. Yes, it would take a little sacrifice initially as the manufacturing sector stabilises but the long-term benefits would be immense.
Encouraging the consumption of locally produced commodities would increase industry capacity utilisation significantly. This, in turn, would lead to the creation of a cyclical sustainable economy which thrives on backward and forward economic linkages, thereby producing a healthy web of interdependence between the various entities within the economy.
Ultimately, the economy would be able to continually sustain itself.
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Online Reporter