Penetrate Sadc markets, firms urged

start penetrating markets within the Southern Africa Development Community before they lose out to competitors.
The deputy minister said this at a reception hosted by Zimtrade for Zimbabwean companies that participated at this year’s edition of Zambia International Trade fair in Ndola.
The fair ended on Tuesday.

Mr Marumahoko, who was the guest of honour at the function said while the quality of locally produced goods was undoubted, he stressed the need to enhance their visibility in regional markets.
“This is time you should start pursuing vigorous strategies to tap into regional markets.

“Zimbabwe is known for producing high quality products but you need to go a step further to enhance their visibility on regional markets. Failure by Zimbabwean companies to keep pace with changes in production process technology has however, resulted in uncompetitive costs of production or deficiencies in product quality.
“Several companies in Zimbabwe are still operating at levels below 45 percent of their installed capacity, a factor which is making products produced by local companies more expensive as compared to those produced in other economies.

“As Government, we are aware of challenges that companies are facing but let us work harder so that you will not lose out to competitors. Just make sure your products are there in regional markets. ”
The deputy minister commended companies that took part at the Ndola fair saying such exhibitions were vital in creating business linkages.

“This is what we expect from you. You have demonstrated your aggressiveness and I also urge companies in Zimbabwe to participate in similar regional fairs in future,” he added.
The Zambian economy, projected to grow by 6,8 percent this year, was recovering and local companies should take this as an opportunity to position themselves.

The country is experiencing a revival of its major copper industry with new mines being developed in the Copperbelt province.
Copper production in Zambia, Africa’s largest producer of the metal, is likely to rise to 900 000 tonnes in 2011 from 819 159 tonnes in 2010.

Zambia’s copper output may continue to increase, with production expected to reach 2 million tonnes in the next five to seven years.
Manufacturing, tourism, construction and agricultural sectors are also projected to register successive growth this year and in 2012.

“Going by these forecasts, you clearly see some business opportunities in the Zambian market,” said Mr Marumahoko.
Local exhibitors said the ZITF was an eye opener. Among the Zimbabwean companies that participated at the ZITF were Hwange Colliery Company Limited, which already enjoys a strong market for its coal in Zambia..

Some of the companies that came under the ZimTrade banner include PG Industries, Art Corporation, ZECO Holdings, Ariston Holdings, Zimtile and Beta Bricks.
In the past few years, Zambia overtook South Africa as Zimbabwe’s biggest trading partner in Africa but it remains a market hugely unexplored by local companies due to lack of information.
But the opportunity to expand could be greatly enhanced by steady economic recovery in Zimbabwe, which will enable the companies to produce more for the Zambian market.