adminNgoni Dapira
MANICALAND business community has hailed the recent directive by Government to all line ministries, public institutions and parastatals to buy at least 80 percent of their vehicles from local car assemblers with immediate effect.
Secretary for Transport and Infrastructural Development Mr Munesushe Munodawafa, in a letter dispatched to ministries, parastatals and State-linked firms’ heads on March 27, said the directive sought to support the local vehicle industry.
The chairman of Revraz Investments, the official sub-dealer of Quest Motors, Mr Charles Tawazadza, said a lot of downstream players would benefit from the buy Zimbabwe ripple effects.
He said local car dealers were wiring millions of dollars at the expense of local assemblers like Quest Motors and Willowvale Mazda Motor Industries, currently struggling due to low volumes.
“There are companies in Nyakamete Industrial area like Afri-Safety Glass, Kenrose Filters, Wattle Company, Manica Board and Doors, to mention a few, that will benefit if Quest Motors benefits from the buy Zimbabwe directive. Out of every one vehicle produced and sold locally, we will create one and half jobs,” said Mr Tawazadza.
He, however, added that there was need to also advocate for component manufacturing locally to have spares made locally and move away from the import syndrome of simple gadgets.
He said local companies like Eastern District Manufacturers were already doing a good job but needed more backing.
Kenrose Filters director Mr Kenneth Dziruni applauded Government and said the directive was long overdue.
The filter manufacturing company has been operating at less than 10 percent capacity utilisation but Mr Dziruni said they had the capacity to revitalise operations if more business opportunities were created.
“With such Government directives we are guaranteed of business, such that even banks will lend money freely and we can resuscitate operations confidently.
“We can meet the demand to supply filters. We need to create employment for our thousands of graduates out there.
“That is why we need such support from Government to remain operational as local companies,” said Mr Dziruni.
Kenrose, which was established in 1990, had slowed production due to stiff competition from imports.
It used to employ over 150 workers at its peak with the capacity to produce 1 000 filters per hour.
Confederation of Zimbabwe Industries Manicaland vice-president and Matanuska finance director Mr Richard Chiwandire said the Buy Zimbabwe concept was the only way Government could give leverage to local companies.
“Cheap imports competition has been the biggest hurdle for local firms. Company closures have been attributed to a number of economic bottlenecks such as the liquidity crunch, lack of affordable credit, obsolete equipment, low aggregate demand, cheap imports and non-performing loans.
“However, with guaranteed market from Government and even private companies through the Buy Zimbabwe initiative, we will give our local companies leverage they need to get back on their feet,” Mr Chiwandire said.
In the statement on March 27, Mr Munodawafa said: “Please refer to Cabinet circular N0. 16 of 2011 dated October 2011, issued by the Office of the President and Cabinet. Any deviation from this norm needs to get authority from Government.”
He said the requirement to support the local vehicle industry was in line with the economic turnaround blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.
The Buy Zimbabwe call also comes amid revelations last year by the Zimbabwe Statistical Agency that Zimbabweans spent $469 million importing vehicles from different countries last year.
The State Procurement Board also ‘‘clandestinely’’ gave out several tenders to local car dealers to import cars for Government ministries, departments and parastatals, especially the trendy cars procured from outside Zimbabwe, against a long-standing Cabinet order.
As a result of viability challenges, an increasing number of firms have over the years been placed under judicial management in the last four years.
According to data obtained from the Master of the High Court, companies placed under judicial management rose from 51 in 2013 to 60 by the end of 2014, while 87 companies were liquidated in 2014, compared to 44 in 2013.
In addition, some firms resorted to downsizing and restructuring, which has left many jobless.
Finance and Development Minister Cde Patrick Chinamasa last year announced that a total of 13 647 workers were retrenched between 2011 and September 2014.
Mr Tawazadza said the Buy Zimbabwe concept would no doubt be the best call by Government to meet its 2,2 million job-creation agenda under ZimAsset by 2018.
Online Reporter