Make job creation your priority this Xmas

Vandudzayi Zirebwa Buy Zimbabwe
Employment and wealth creation has become the biggest challenge confronting most African countries including those that are currently experiencing high levels of economic growth. Over the last few weeks, two of our neighbours, Zambia and South Africa, have been engaged in a series of discussions to stem the growth in unemployment.

In Zambia, a country where statistics indicate that the country is presently sitting on foreign currency reserves of around US$2,5 billion, a new wave of retrenchments has hit the mining sector, with one of the biggest companies there, KCM, recently announcing plans that it will retrench 1 500 employees over the next three years as it opts for mechanisation and automation in a bid to reduce operational costs.

Worried over this development, President Sata has issued a warning to the entire mining sector and KCM in particular against taking such action that threatens to create a crisis in his country as well as set a dangerous precedent. Already the work permit for the CEO of the company has been revoked with a technical committee being appointed to look at the matter.

However, the latest crisis follows one that involved South African retailers in that country who for some time now have been engaged in various labour disputes.

Their interest has been to keep as many part-time and lowly paid workers as possible while the Government has been insisting on improving the condition of the Zambian worker. South Africa is also facing similar challenges, particularly in the mining sector. The difference though is that unlike the situation in Zimbabwe and Zambia, the South African government, trade unions and business have been meeting over the issue.

Just this past week, the three parties, who are signatories to the Buy South Africa Accord that calls for 75 percent local procurement, came together to reaffirm their commitment to the buy local initiative by launching Buy Back South Africa campaign that is calling on South Africans this festive season to ensure that over 80 percent of their purchases are local products. Already significant marketing and advertising budgets have been drawn up for this campaign, whose visibility is unmistakable to all in that country.

The government there, which most recently pushed for the legislation of a youth employment fund, has also come up with a cocktail of incentives aimed at rewarding companies that ensure that they procure local products.

Various forms of rebates and tax concessions have also been formulated to ensure that South African manufacturers and retailers reap benefits by engaging in activities that create and save local jobs.

What this means for us in Zimbabwe is that, unless we take decisive steps and work in unison as Government, labour and business, we might see thousands flocking to South Africa for Christmas shopping, which will be a boost for their industries and job creation. We thus need to be mindful that as we continue to mourn about competitiveness and the state of our industry our neighbours have taken steps to protect their industry and jobs. Our collective response to this threat will determine our ability to keep our economy afloat and ensure that this coming festive season is not the final nail in our industry that is on the verge of collapse.

However, not all hope is lost as the festive season campaign targeted at local shops has been gathering momentum.
While OK Zimbabwe and N Richards were the first ones to come on board, other retail and wholesale chains such as TM Supermarket, Spar, Bhadella and others have joined in to ensure that consumers get the best possible deals on locally produced products which will create demand for these products and save local jobs in the process.

Consumers who make the decision to save and create jobs will be rewarded handsomely in both product and financial terms.

While the challenges that our Government is facing in collecting revenue are understood it would be great if some form of incentive and tax rebates are attached to this initiative.

An example could be that local suppliers who choose to set aside a budget to buy a vehicle from Quest Motors or Willowvale would get a tax rebate provided they move X amount of volumes of their product in a manner that increases their overall tax payment.

Government and parastatals can also make a commitment to procure products from local suppliers only. That commitment by itself will generate the right levels of interest as well as momentum necessary to slowing down our import deficit projected to go above US$4 billion by end of year.

Our media should also support this initiative. Recently one media executive was quoted complaining that the reason why they are failing to adhere to local content stipulations is that the quality of locally produced music is poor.

Clearly, unless the corporate sector comes in to support local artistes the quality will remain low for much longer periods of time.

There is thus a direct relationship between the interest of media houses and that of industry, which is to ensure that we generate pride in our own capacities and that we celebrate the best of what our country produces.

The Buy Zimbabwe Awards that are set for the middle of December have been designed to reward all key parties that have dedicated themselves to ensuring that our country’s various products and services enjoy preference over foreign offerings.

They also seek to sensitise our nation that the future can only be guaranteed if we need to invest the resources available to create wealth and jobs for our own people. We should dedicate this festive season to creating local jobs. Retailers and industry who have traditionally never shared this common agenda for the first time ever are coming together to showcase local products and reward consumers who buy such products.

What remains is for all parties including Government to embrace this opportunity and invest in a better future for all.
Till we meet again, let’s make this Christmas and festive season one where we create rather than export jobs.