adminMINISTER of Finance and Economic Development has called on local industry and service providers under the auspices of the Buy Zimbabwe to come up with a prizing regime that is realistic, cheaper, affordable and competitive against their imported substitutes to remain viable.
Cde Chinamasa said this as he officiated at the Metro Peech and Browne Wholesalers Supper Traders Draw in Rusape last Saturday, where he revealed that Government was working around the clock to capitalise hard pressed companies and implored local wholesalers, retailers and consumers to buy their products and services.
Cde Chinamasa, however, argued that the local industry need to be sincere and reciprocate consumer gestures with prices that are affordable.
Consumers at times are forced to opt for foreign products arguing that local products were expensive.
Zimbabwe products are more expensive compared to regional imports because producers are using old plant and machinery which is expensive to run.
The producers are also using old technology that requires constant intervention, is labour intensive, and consumes more power. Industry also argues that the local market is small and therefore they lack the economies of scale.
The production process is also blighted with high utilities costs, water, power (in fact running on generators which are expensive) and high interest rates.
“I want to challenge local businesses and consumers across the country to buy goods and services that are manufactured locally. If we buy local goods and services, we are helping to sustain employment and breathe life into our struggling firms. I am happy to tell you that we have managed to recapitalise Cairns Zimbabwe, and soon it will be Blue Ribbon.
“This is what Government is doing to revive industry.
“Local firms also need to be realistic in their pricing regime; the Buy Zimbabwe initiative can only be sustainable if the prices are realistic and affordable.
“The prices of local goods and services should be competitive so that they can effectively compete with similar foreign products that are cheaper.
“As Government, we have introduced protective measures by imposing a ban on the importation of certain foreign products to give our local firms an opportunity to grow. This will only be for a season, and there shall come a time when that lid shall be lifted, and expose them to foreign competition.
“The South African Rand is weakening against the US currency daily and the implication is that products from South Africa can be imported into Zimbabwe cheaply, so for local products to co-exist with these foreign products, they must be cheaper and affordable to consumers,” said Cde Chinamasa.
The Buy Zimbabwe initiative advocates for the purchase and consumption of locally produced goods and services.
Apart from raising public awareness on the importance of purchasing and consuming locally produced goods and services, the campaign lobbies and informs policy issues on reviving closed industries.
Since the beginning of the economic meltdown more than a decade ago, a lot of companies in Bulawayo have either closed down or relocated to other cities.
Metro Peech & Browne Wholesalers closed shop in Rusape in 1998 and reopened its doors to the public on October 23, 2014.
The wholesaler has 15 branches in Zimbabwe.
Saturday’s draw was the third the Rusape branch’s inception.
The first prize of a two-tonne Toyota truck was won by Rusape physiotherapist-cum-businessman, Mr Clemence Muhle.
The second prize went to Mrs Rodina Gumiro of Nyazura, with the third going to Mr Ronnie Hera, of Headlands.
The fourth prize went to Mr Simbarashe Mbiriyadi, of Nyanga.
Mr Mbiriyadi went on to scoop three other different prizes.
Online Reporter