adminTinomuda Chakanyuka, Sunday News Reporter
THE Government has warmed up to an initiative by local industry to introduce a local content policy which aims to promote locally manufactured goods and in the process cushion local manufacturing companies from unfair competition from foreign firms.
At present the Government has in place, among other measures, Statutory Instrument 64 of 2016 which places restrictions on the importation of certain goods.
However, industry feels a more sustainable approach, like the local content policy, is needed to stimulate industrial growth through promoting procurement of local goods. Deputy Minister of Industry and Commerce Cde Chiratidzo Mabuwa described as a good initiative the proposal by industry for the country to have local content policy.
She said such approaches had proved successful in countries like Zambia and South Africa and the Government was considering adopting a similar approach to stimulate procurement of local goods.
“It’s a private sector initiative which they have shared with us and as Government we are mooting facilitating its implementation. Look at South Africa and Zambia where similar policies have been successful. It’s a very good initiative which we should support,” she said.
Cde Mabuwa added, “We don’t have policy at present and all we have are regulations. A policy will be needed to guide and complement the statutory regulations that we have in place. The policy will be in sync with the indigenisation policy and laws in terms of promoting local companies.”
Buy Zimbabwe chief executive officer Mr Munyaradzi Hwengere, who is among some of proponents of the initiative said efforts were underway to have the policy launched in the first quarter of next year. Mr Hwengere said his organisation was working on a local policy brief which will be presented to Government for consideration.
“As Buy Zimbabwe we are seized with this matter and we will be producing a policy brief in the next few weeks. This will inform the local content policy that we understand is already being crafted,” he said.
Mr Hwengwere said the local content policy will help stimulate procurement of local goods by rewarding local companies that would have procured locally manufactured products. He said the local content policy was compatible with World Trade Organisation provisions and protocols, and provided a more sustainable solution to undercapitalisation of local industries.
“This approach has been successful in many other countries that include Botswana, South Africa, Chile, Brazil and USA. It is compatible with WTO provisions and trade protocols; hence it minimises the probability of trade retaliation.
“The policy will work in an almost similar fashion as the Black Economic Empowerment policy in South Africa. There will be incentives and rewards for local companies that support other local companies. That way we will stimulate local procurement and help capacitate local industries,” he said.
A number of local companies have complained of unfair competition from cheaper foreign products, a development they said compromised their operational capacity. The Government, in July this year, stepped up to cushion local industry from competition from imports by introducing SI64. SI64 controls importation of a wide range of goods, including coffee creamers, camphor creams, white petroleum jellies, body lotions, builders’ wares such as wheelbarrows, structures and parts of structures of iron or steel, bridges and bridge sections, lock gates, lattice masts, roof, roof frameworks and doors. According to Buy Zimbabwe the introduction of SI64 has been marked by an increase demand for local goods and a significant decline in the volume of imports.
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