NEW: “Buy Zimbabwe”, our best foot forward towards economic success

Philip Mataranyika

AS we prepare for the 2025/2026 National Budget, a familiar debate will undoubtedly resurface — one that centres on the perennial challenges of resource allocation across Government ministries.

While I am no prophet, I would bet my last dollar that discussions will focus heavily on the insufficiency of funds, not due to any stinginess on the part of the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube and his team, but simply because the fiscal pie is not big enough to meet all the pressing needs.

That is the elephant in the room.

Yet, recognising this reality must not breed resignation.

Instead, it should galvanise us to exert extraordinary effort — blood, sweat and tears — to extricate ourselves from this fiscal tight spot.

Currently, there is considerable and commendable focus on expanding productive sectors such as manufacturing, agriculture and mining to grow the formal economy, increase business formation, create jobs and broaden the tax base.

The Government’s drive to formalise small businesses and promote exports is equally commendable.

Simultaneously, Zimbabwe has witnessed progressive reforms in modernising the tax system.

Measures to broaden VAT (value-added tax) coverage, reduce unwarranted exemptions, improve resource taxation and enhance tax administration through digitalisation are crucial steps forward.

It would be remiss of me if I didn’t give a thumbs up to Mrs Regina Chinamasa and her team at Zimra (Zimbabwe Revenue Authority) for their innovation and commitment.

Civil society loudly insists on plugging revenue leakages caused by corruption and illicit financial flows — especially in natural resources — a matter that cannot be overstated.

While these fiscal and governance reforms are vital to building a stronger foundation for Zimbabwe’s development goals, it goes without saying that the Government must accelerate its commitment to promoting local production.

Indeed, supporting local enterprises and production is an indispensable pillar of economic development, resilience and growth.

It is heartening to observe current efforts.

The Government’s Local Content Strategy, which seeks to raise minimum local content thresholds in priority sectors from 25 percent to 80 percent, aims to deepen value addition and strengthen domestic linkages.

In the manufacturing and industrial sectors, the Ministry of Industry and Commerce has established a steering committee to implement, monitor and review local content requirements across the pharmaceuticals, cement, steel, leather and other sectors.

Minister Mangaliso Ndlovu has been a vocal champion in supporting local content, building on the solid foundation laid by his predecessor, Dr Mike Bimha.

Both have played pivotal roles in fostering a culture of local production, aligning public policy and private sector initiatives to promote Zimbabwe’s industrial growth and economic self-reliance.

In mining, discussions on responsible sourcing and local procurement have been gaining traction.

Companies such as Zimplats have pioneered this approach, commissioning state-of-the-art smelters that process concentrates from third parties, while Unki, Mimosa as well as Zimplats itself lead the charge in preferential procurement favouring local suppliers.

Their efforts have not gone unnoticed, with all of them winning awards from Munyaradzi Hwengwere’s Buy Zimbabwe campaign, which advocates for a minimum 50 percent local content requirement in both private and public sector procurement — a critical demand-side lever for local production.

The media and creative sectors also merit special mention.

A proposed 75 percent local content quota for broadcasters in the new media policy by Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere echoes the successes achieved during Professor Jonathan Moyo’s tenure as Minister of Information in the early 2000s.

Artistes like Jah Prayzah, ExQ, Plaxedes Wenyika and Winky D can vouch that their inroads into the arts and creative space is attributable to that defining period.

Today these artistes represent local brands as ambassadors and continue to push national aspirations through song and dance.

Sustaining such policies nationally and expanding their scope would yield substantial benefits.

However, the Budget remains the key instrument for turning these aspirations into reality.

It can reduce cost burdens for local producers through duty-free importation of critical inputs, tax incentives and rebates linked to local content utilisation.

Public investment in infrastructure, manufacturing plants, research and development will provide the backbone for local industries to thrive.

Budget allocations for institutional mechanisms — steering committees, monitoring bodies and capacity-building — will underpin the Local Content Strategy’s effective implementation.

The Government can earmark funds for priority sectors with high local content potential, including pharmaceuticals, agro-processing and creative industries, embedding them firmly within the national development agenda.

Public procurement policy, shaped by the Budget, is a powerful tool to guarantee demand for local goods and services.

Buy Zimbabwe’s call for 50 percent local content in procurement rightly emphasises this.

Moreover, recognising that local content spans manufacturing, culture and media, budgetary provisions for grants, subsidised loans and tax incentives to these sectors will multiply economic impact and output.

Support for skills development, digital infrastructure and research will enable local industries to move up the value chain and compete internationally.

Zimbabwe is not alone on this journey.

History offers inspiring lessons from global luminaries who championed local production as a foundation for national prosperity.

In the United States, after independence in 1776, the economy was largely agrarian and reliant on British imports.

Alexander Hamilton, the first US Secretary of the Treasury (1789–1795), was the chief architect of an industrial policy that envisaged a self-sufficient, robust manufacturing base.

His 1791 “Report on Manufacturers” advocated for protective tariffs, subsidies for domestic industries, infrastructure investments and national credit institutions to foster industrial financing.

Although clearly protectionist, his developmental vision laid the groundwork for America’s transformation into an industrial powerhouse.

Germany, inspired by Hamilton’s ideas through economist Friedrich List, pursued protective tariffs and State-supported industrialisation programmes in the 19th century, investing in technical education and industrial banking.

This propelled Germany to become a formidable industrial rival to Britain.

Japan’s Meiji Era 1868 to 1912 and post-World War II industrial policies were characterised by government-led technology imports, education and nurturing national champions, coordinated by the Ministry of International Trade and Industry (MITI).

Companies like Toyota and Sony thrived under protective policies until they became globally competitive.

South Korea’s export-oriented industrialisation from the 1960s to the 1990s, led by Park Chung-hee, relied on subsidies, loans and import controls to build global powerhouses such as Samsung and Hyundai.

China’s reform era, starting in 1978, combined state planning with market mechanisms, enforcing local content requirements and technology transfer while investing heavily in infrastructure and education.

This strategy turned China into the world’s manufacturing hub and emerging tech leader that it is today.

Brazil and India also charted paths through state-led industrialisation programmes, import substitution and later liberalisation, with initiatives like India’s “Make in India” positioning them as manufacturing and service powerhouses.

Singapore’s Lee Kuan Yew managed to transform his nation from a struggling British Port City to a thriving global metropolis through inward-looking policies.

His Economic Development Board played a crucial role in attracting foreign investments and developing local industries by offering clear incentives and support for local companies and industries.

Zimbabwe stands at a crossroads.

By committing fully to local content promotion through coherent policy and budgetary support, we can unlock value, create jobs, enhance economic independence and drive sustainable economic growth.

It is time to accelerate these efforts.

As history shows, nations that protect, nurture and promote local industries before embracing full global competition create enduring prosperity.

The upcoming National Budget should reflect this strategic imperative.