Online Reporter
Remember Deketeke
Herald Correspondent
National Development Strategy 1 (NDS1) advanced the drive to restock retail shelves with locally-produced goods, laying a firm foundation for the rollout of NDS2, Industry and Commerce Minister Mangaliso Ndlovu said after touring Spar Supermarket in Chisipite, where he noted that the bulk of products on display were made in Zimbabwe.
“I think our economic growth is increasingly being driven by local production, and this is clearly reflected when you walk into a major supermarket and are told that about 80 percent of what you see is locally produced,” he said.
He said the tour had been an eye-opener, allowing Government to engage directly with retailers and understand supply-side challenges faced by local producers.
“It has been insightful walking through the shelves with the executives here. Where we had concerns about why certain products were still being imported, they were able to explain some of the shortcomings from local suppliers,” he said.
Minister Ndlovu said Government had taken note of areas requiring improvement to further strengthen domestic value chains.
“There are certain agricultural products that can be packaged better and there are manufactured products, cheese, for instance, where, given the growth in our dairy production, we believe we can do better,” he said.
The dominance of locally produced goods demonstrated the effectiveness of NDS1 in stimulating domestic industry.
“As you have seen during the tour, these are mainly locally produced products. This is why we believe NDS1 has delivered quite greatly and has provided a solid foundation for NDS2,” said Minister Ndlovu.
Spar representative Mr Francis Muchuchu said the localisation of production under Government policies had a positive impact on the retail sector. Locally produced goods were improving supply efficiency and cash-flow management.
“First and foremost, we really appreciate what the Government has been doing. As retailers, what we have done is to invest in areas where our local producers are able to make a difference in the value chain,” he said.
Localisation had addressed one of the major challenges in the retail sector, long waiting periods associated with importing goods.
“In retail we say time is money. We operate on very thin margins, and localisation of production has reduced the lead times in which we get products into our shops,” he said.
Mr Muchuchu said that importing goods often tied up capital for extended periods.
“You can imagine how long it takes to get products from abroad. You are waiting 60 to 90 days and by then you have already laid out your cashflow,” he said.
He said increased reliance on local manufacturers had enabled retailers to restock shelves faster and operate more efficiently.
“With the support of our local manufacturers, we are now able to quickly ask for replenishment of our shelves, thereby shortening the capital cycle that we are looking for,” said Mr Muchuchu.
The shift towards locally produced goods had yielded tangible benefits for business operations. “I would say it has had a positive impact on the business,” he said.
The Government has prioritised import substitution, local value addition and increased production under NDS1, with the strategy expected to be deepened under NDS2 as Zimbabwe accelerates towards sustained economic growth and industrialisation.
