Industrialists see opportunities in Covid-19

Nqobile Tshili, Chronicle Reporter
PRODUCTION has resumed across economic sectors following the easing of Covid-19 lockdown conditions this week with industry and commerce executives rallying economic players to produce more for local consumption and export.

Industry leaders urged companies to increase production to enhance the country’s resilience as well as cover the gap created by Covid-19 disruptions in the supply chain locally and regionally.

In separate interviews yesterday industrialists said the easing of lockdown terms should push the productive sector to produce more to meet local demand and even produce surplus for export to avoid a situation whereby the country depends on imported goods. South Africa’s lockdown has already adversely affected supply of goods locally hence the need for local companies to rise to the challenge and cover the gap.

Observers say this is the opportune time for local companies to claim their market share by substituting imports. President Mnangagwa last Friday extended the national lockdown by a further two weeks but relaxed restrictions to allow industry and commerce to resume operations.

Most companies both in the manufacturing and retail business resumed operation on Monday or Tuesday.

Those in the clothing industry should brace for increased demand as Government has banned importation of second hand clothes as part of measures to curb the spread of Covid-19.

Confederation of Zimbabwe Industries (CZI) national vice president, Mr Joseph Gunda, said Covid-19 has created opportunities for local manufacturers to increase production.

“The Covid-19 disruptions which have affected economies globally might be a blessing in disguise as consumers have been forced to turn to their local manufacturers. Every other country and economy is focusing on its own and we also need to focus on our economy,” said Mr Gunda.

He said the $18bn stimulus fund announced by Government should enable companies to re-tool and improve on productivity.

“Manufacturing companies apart from re-tooling, need working capital to enable them to acquire raw materials,” said Mr Gunda.

He said the banning of second hand clothes should excite those in he clothing industry who should gear up for increased demand for their products.

Mr Gunda said industry was already conducting a survey on how the lockdown has impacted the sector in order to use the data to come up with accurate projections.

He however said for industry to address the challenges brought about by the Covid-19 disruptions, Government should ensure the productive sector has access to foreign currency and also assist in reducing production costs through measures such as charging special power tariffs for the manufacturing sector.

Mr Gunda said retailers on their part should encourage consumption of locally produced goods through correct pricing. He said logically locally produced goods should be cheaper that imports. Local economist,

Dr Nqobizitha Dube also said local producers should take advantage of opportunities presented by disruptions of global economies as a result of Covid-19.

“I agree we are largely an importing economy but we were not always an importing economy so there is room to reverse this. What does this lockdown mean? I expect that in these initial stages it would be difficult because we were used to importing products from South Africa. If South Africa does not open in a way that we want it to open for imports, it might affect us in the short term”, said Dr Dube.

He said it was therefore important for industries to prepare in the event SA lockdown is extended for a year or two.

Zimbabwe Miners Federation (ZMF) chief executive officer, Mr Wellington Takavarasha said while the mining sector was largely operational during the initial stages of the national lockdown, some of the manufacturers supplying them with equipment were on shutdown.

He said easing of lockdown does not mean that it was now business as usual as manufacturers of equipment were yet to catch up.

Mr Takavarasha however said what was encouraging was that the mining industry was set to benefit from the $1 billion Government stimulus package.-@nqotshili