Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE government will enhance the enforcement of local content requirements during the National Development Strategy 2 (NDS 2) to strengthen industrial linkages, improve value chains and promote an inclusive industrialised economy.
This new framework will ensure mandatory local content thresholds in key sectors to boost domestic production, increase the use of local raw materials and encourage greater participation from Zimbabwean enterprises in economic growth.
According to the recently launched policy framework, the Local Content Strategy will be fully operationalised through mandatory local content thresholds targeting industries with significant potential to drive value addition and job creation.
“To deepen industrial linkages and fully optimise value chains, Government will operationalise the Local Content Strategy by enforcing mandatory local content thresholds for strategic sectors, specifying requirements for use of local raw materials,” reads part of the NDS-2 document.
Authorities say the thrust is to expand domestic production, build resilient supply chains and increase participation of local firms in national economic growth.
“This will promote local content and inculcate the Buy Zimbabwe culture to increase the uptake of domestic raw materials, services and components in locally manufactured goods, thereby fostering inter-industry linkages and supporting a wider base of local businesses.”
As part of the strengthened framework, procurement systems across the public sector will be aligned to prioritise local sourcing, including incentives and compliance mechanisms to encourage adherence.
“In this regard, Government will strengthen local content and procurement frameworks to include compliance incentives and consolidating procurement to prioritise local sourcing, which uses the Government’s significant purchasing power to create a stable, large market for local manufacturers.”
During NDS 2, targeted interventions will be introduced to drive up demand for locally produced goods and services, thereby stimulating industrial growth and supporting the creation of decent jobs.
“During NDS 2, intervention to promote procurement of locally produced goods and services will be introduced to stimulate demand for domestically produced products that way supporting enterprise growth, creating decent jobs and moving the economy up the value chain towards inclusive and sustainable industrialisation.”
Given that Government is the single largest purchaser of goods and services, public procurement will be used as a strategic tool to accelerate industrialisation of key value chains.
“Recognising that Government is the single largest buyer of goods and services in the country, NDS 2 will strategically leverage public procurement to facilitate industrialisation of key value chains and create jobs,” added the document.
To operationalise this, ministries, departments and agencies (MDAs) will be required to source a defined proportion of their procurement from certified local companies.
“Government will require that a defined proportion of purchases by MDAs be sourced from certified local manufacturers. Pursuant to this, procurement of uniforms by the uniformed forces and students would protect jobs in the cotton-to-clothing value chain. Similarly, with procurement of boots and accessories from certified local manufacturers, in support of the leather value chain.”
Government will also ensure that local producers are not unfairly disadvantaged when competing against imports for public tenders.
“Furthermore, Government will also ensure that bids from domestic producers for items like school furniture and hospital linens are competitively evaluated against imports.”
To enforce compliance, a mix of incentives and penalties will be applied to guide procurement behaviour.
“Government will also develop a system of smart incentives and disincentives, offering preferential access to Government contracts and fiscal benefits for compliant firms, while applying restrictions on those that fail to meet thresholds.”
As part of modernising the system and creating transparency, a national digital platform will be introduced to register and certify local producers.
“Pursuant to the above, Government will launch a digital local content platform on which companies can register their production processes for official rating and certification, creating a verifiable database to guide both public procurement and private sector sourcing.”
Authorities also emphasise that strengthening standards and competitiveness will be central to making local products more appealing to both domestic and export markets.
“The local procurement policy will be buttressed by ensuring that local product meet international standards in respect of competitiveness and product quality.”
The measures collectively aim to build a resilient industrial base, expand domestic value chains, and ensure that Zimbabwe’s industrialisation drive under NDS 2 is anchored on strong local participation.
