It’s time to create Buy Zimbabwe islands

Finance Minister Patrick Chinamasa must be applauded for declaring war on cheap imports and his emphatic resolve that this is one war that the country cannot afford to lose. He was also spot on when he said the manufacturing sector in particular should work with Government in structuring ways and means of ensuring that the sector begins to enhance its competitiveness to regain lost market share.
After years of speaking against the dangers of relying on imports, it is now very evident that Zimbabwe’s prospects of an early economic revival largely depend on ensuring that the US$8 billion that is being exported to foreign countries in exchange for various non-essential products should be retained in the country for the retooling of our industry.

At the moment domestic demand has fallen while unemployment has remained depressed. We are also failing to build our energy sector, which is a critical enabler, simply because the money required to do so is not available. The liquidity crunch has also continued to affect the whole economy.

To ensure that all parties come together in the fight against imports, Buy Zimbabwe and a number of leading Zimbabwean retailers are organising a Buyers and Suppliers Conference in October to come up with practical ways of ensuring that local products gain more shelf space and to create a better understanding of the dynamics that are shaping consumer shopping habits.

While price has been cited as the key determinant which has led to the present scenario, a number of Zimbabwean companies have also complained that they are being excluded from supplying leading local shops.

Most have also said they are deliberately excluded from many promotions. However, our retailers have also hit back accusing most of our local manufacturers of not benchmarking themselves against foreign competition. Some have products that are poorly packaged, lack attractiveness and are made with little regard to consumer needs and wants.

By coming together in an open no-holds-barred discussion, it is anticipated that manufacturers and retailers will exchange information necessary to help make our products more competitive and devising ways of reducing imports.

Another key challenge that the conference will also seek to tackle is the identification of areas where Zimbabwe can begin to raise competitiveness, visibility and realise quick wins against imports. On the basis of such understanding, it is our hope that our leading retailers will designate Buy Zimbabwe islands that feature leading products from our industry in their shops.

This, we believe, will raise awareness among consumers and underline the retail industry’s commitment to supporting the local industry.

Critically, it will also raise visibility of local products while also encouraging consumers to pay greater attention to products that are locally produced.

An added dimension of these Buy Zimbabwe islands will be to encourage other local manufacturers to benchmark themselves against products on these islands in terms of pricing, packaging and other related issues. As a result we will see more local competition as various local suppliers seek not only to participate on these islands but to beat such products.

Indeed, as we seek to compete against foreign products, sometimes, it is easier to benchmark against local products as conditions are easier to understand, replicate and improve.

As team Zimbabwe, adopting such an attitude en- ables our companies not only to build a collective mindset on what we are all about but also realise the need to raise global standards. Unfortunately, our present situation is such that each manufacturer seems to be fighting in their own corner with little synergies being built within the sector.

This has put us at disadvantage against South Africans who generally move as a block, market as a team and have a distribution network that is controlled by selected and well-oiled entities that are also able to raise the funding required to promote wholesome products from their country.

Once successfully launched Buy Zimbabwe, suppliers and retailers hope to then come together to embark on a major promotion of our local products on the basis of price, quality and availability.

Hopefully, at that point our fiscal authorities who seem clearly determined to win the war against imports can then come with various tax regime measures to ensure that we unlock our domestic competitiveness.

The local media especially the public media will also be useful partner in this arrangement.
By coming on board to highlight the initiative, encouraging local suppliers to participate and advising consumers of products in these

Buy Zimbabwe islands, the media will not only be building a better basis for increased advertising spend but would also ensure its own long term survival.

Over time we have seen an increased migration of advertising from local channels to international channels. At the same time our small- to medium-scale enterprises have found it more and more difficult to advertise their products on the local channels as the dwindling income has forced our media to raise advertising rates to manage their costs.

As such unless all parties who have an inherent interest in the future of our industry and country come together we are likely to see a worsening of the present situation.

The most positive aspect is that we have a new Government that has increased awareness on what needs to be done. There is also determination to work with various stakeholders in crafting solutions to take our country forward and reverse the various ills that have afflicted us.

Across the board we also note a focus on ensuring that matters that had been put on the back burner for a very long time, such as the resumption of production at New ZimSteel are resolved timeously.

Already the ethanol project is steaming ahead especially after President Mugabe announced that Government was committed to increasing the mandatory blending thresholds from 5 percent to as much as 20 percent. These are the kinds of policies that we need to take this country forward and win the war against imports.

Buying Zimbabwe is indeed everyone’s business. For those interested in being part of the Retailers and Suppliers Conference kindly get in touch.

Till we meet again, God bless.