Online Reporter
EXCEPT for minerals and tobacco, the Zimbabwean economy was weak in developing export markets, instead concentrating its efforts on import substitution and creating a home market.
This was limiting, especially as trade frees up and barriers to inter-Africa trade, both tariff and non-tariff, diminish.
Zimbabwe’s economic growth will increasingly rely on a more balanced economy.
Even with the traditional commodity exports, Government policy is to add more value before shipping, and eventually to export the bulk of these commodities as finished manufactured products such as cigarettes and batteries.
Most modern models of economic development see a substantial increase in the export of manufactured goods and suitable services and that a lot of intra-African trade will be in such products and most exports from Africa will be manufactured goods.
This switch for Zimbabwe has been driven by a complete overhaul of how we look at our manufacturing sector. It was built up slowly in colonial times as a way of providing some of the more common goods required at a reasonable price, although for a long time the colonial elite saw Southern Rhodesia as a commodity exporter and goods importer so there would not be an industrial working class.
That started changing in the 1950s and the extreme needs of the Unilateral Declaration of Independence economy saw what is now regarded as a major and unneeded diversion into a totally controlled economy.
While that saw a lot of local industry much as just finishing imported components, quality was very variable since there was no competition.
The opening of the economy at the end of last century saw a lot more competition. Some local industries just folded, but some manufacturers who had built up something more worthwhile were able to compete with imports, and they welcomed the greater access to capital and new production machinery.
They were joined by a rising number of newcomers and new investors. It is this group that is now driving our manufacturing industry, including that large core of agro-industry, where the raw materials exist locally.
The Government is backing them with an export policy that sees a 10 percent rise in exports annually, with ZimTrade moving out of the talk stages into the arena of seriously hard work, where it can properly aid the serious exporters.
The latest ZimTrade Export Week, now running in Bulawayo, is seeing the fruits of these new strategies.
Zimbabwean exporters have been building a reputation for high quality at reasonable prices, and that is a winning formula that is bringing in customers.
The buyers are also keen on other strategies used by most exporting companies, including their willingness to talk to customers and make specific new products or modify existing ones. There is definitely no “take it or leave it”.
Already after just two years of the new ZimTrade efforts, we are seeing regulars coming to the export weeks to see what new products our smarter manufacturers are making and to discuss customer experiences.
Agro-industrial products sold regionally apparently already have a reputation of long shelf lives, or at least longer than many competitors, along with that growing fascination for high quality.
These are companies that retained or built up local market shares as sloppier competitors went under, so they started knowing that only quality really sells, and building from there as they move out of Zimbabwe.
Newer exporters have been joining them, again using quality as a selling point. We have moved in regional steel markets for example, because Disco of Manhize has been producing quality at the right price and so is able to compete with the long established competition.
We have also started building up new product ranges, unique products, the Government has been backing the conversion of local wild fruits into products that can be sold both locally and across the border.
A growing range of specialist Zimbabwean foods already exists, and more and more will be added. We note that some private companies have been creating specialist products from traditional grains that are building up an export market.
ZimTrade is helping with warehousing in neighbouring markets and other backing, but a major part of its support will be ensuring that Zimbabwean companies know where markets can be found, and many markets will not be traditional markets, and that they tailor their products for these markets.
But tailoring must not allow any compromise with quality and value for money. Our manufacturers are already starting to see that having their flag and “Made in Zimbabwe” on the label is a selling point and collectively need to build on this.
Other countries have built up reputations of supplying the best, and even new firms in those countries win orders because outsiders reckon they must have adopted the prevailing national standards.
