adminVandudzai Zirebwa Buy Zimbabwe
The year 2014 appears to be moving in the right direction.
It is moving in the right direction for those who genuinely believe that the key to solving our socio- economic challenges demands that we change our thirst for imported products at the expense of our own.
Statistics released by Government indicate that the decision to blend imported fuel with our ethanol is now bearing fruit with noticeable decline in money we are spending on fuel imports.
The ethanol programme has not only saved us money but created significant new jobs at a time most companies are either retrenching or struggling to survive. However, what is critical is our ability to take advantage of these developments to begin building our current account and ensuring that we steadily reduce the import bill.
A sad situation would be to make gains in one economic area only to allow another to undermine such progress.
Just recently the Buy Zimbabwe team toured the recently opened US$84 million Long Cheng Plaza shopping mall opposite the National Sports Stadium.
The purpose of the tour was to assess the extent to which the mall had accommodated Zimbabwean goods and businesses and depending on the outcome recommend ways in which a true partnership could be established.
While we observed a number of shops that belong to Zimbabweans, the ratio of local goods compared to Chinese ones is perhaps in the ratio of 10 to 1 in favour of the latter.
A key feature of the mall is a huge supermarket that has been set up there. The supermarket is entirely dominated by Chinese products with a sprinkling of Zimbabwean goods.
The foreign products range from detergents, toothpaste, soaps and variety of things that we have generally associated with local companies.
The feeling one gets in that supermarket is that the new landscape in Harare is not foreign in outlook only, which by the way is, however, not always a bad thing.
While we are still to engage our Chinese counterparts on our observations, we think the mall owners are doing themselves and the country a huge disservice by allowing the present scenario to prevail.
By now it has become evident that an over preference of imported goods over local ones severely affects the liquidity situation in the country and negatively influences disposable incomes. What that in turn results in is the decline in overall domestic demand for all goods.
Interestingly, contrary to general perception on the competitiveness of local goods, the prices that are prevailing within the supermarket are very closely related to those that are attained in most retail outlets in the country.
As such the Buy Zimbabwe team did not witness a major price differential with local goods. There is thus room to procure locally without affecting customer offering.
The Government has of late been emphasising on areas that are reserved for locals and has listed the retail sector as one such area. The obvious expectation is that by favouring locals within the retail sector Government is promoting the overall economic interest rather than creating a scenario where locals become vehicles of undermining their own local companies.
While Government has yet to legislate on minimum local content for shops and is relying on moral suasion, indications are that there is need to put in place parameters that ensure that our retailers abide to certain basic requirements. This is important if we consider that most local shops have begun embracing the Buy Zimbabwe initiative and are now working closely with the local industry on issues critical to enhancing presence, competitiveness and general supply.
These gains may be lost if unity and common purpose is not established among the different players and operators. We believe Zimbabwe and investors who are coming in to build new properties would be the ultimate winners if we put our heads together and work out programmes that bring new development while at the same time, opening opportunities for the local industry to thrive.
Surely Zimbabwe does not want to borrow from the sad scenario that pertains across our borders in Zambia where a number of new malls have been built by South Africans only to see huge amounts now being externalized.
In as much as that economy is reported to have a gross domestic product estimated at $22 billion (almost twice that of Zimbabwe), because of such leakages the revenue collection by the two countries is almost at par.
We are better off as country if we focus on employment creation and preserving every cent we generate.
Buy Zimbabwe would like to commend OK Zimbabwe, TM Supermarkets, N. Richards Wholesalers and Food World for their commitment in supporting the buy local initiative as seen in the combined and spirited efforts to promote local goods and services at the recently ended Buy Zimbabwe Promotion.
Buying Zimbabwe is critical to saving our economy and let’s work to ensure that our country wins.
Till next week, God Bless.
Online Reporter