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PROCUREMENT policies can secure local industries competitive edge, the Chartered Institute of Purchasing and Supply Africa managing director, Mr Andre Coetzee, has said.
Addressing buyers from various local companies, Mr Coetzee, who was the main speaker at the CIPS Zimbabwe summer school workshop for local buyers and stakeholders in the supply chain, said Zimbabwe must reposition its procurement and supply chain policies as it endeavours to develop its economy and industry.
The two-day workshop was running under the theme, “Positioning of procurement and supply chain as an enabler of economic growth in Zimbabwe.”
The South African-based procurement and supply chain expert said Zimbabwe should take a leaf from South Africa which has ranging procurement quotas in diverse sectors of the economy mostly to protect its Small to Medium Enterprise.
“Procurement quotas are important for developing industries and nurturing industrial growth and create employment.
“In South Africa, procurement quotas differ sector by sector, but the thrust is to promote SMEs which is where job opportunities are for the masses in the modern world.
“As CIPS Africa, we want to establish a Zimbabwe CIPS chapter which will become the voice of procurement and supply chain issues and to influence policies.
“CIPS Africa is prepared to work with the Zimbabwean Government to develop the economy and Africa as a whole. We believe that with sound procurement and supply chain policies in place Africa will develop its industry and grow out of stalemate,” said Mr Coetzee.
The business development executive of Buy Zimbabwe, Mr Alois Burutsa, said they were in support of procurement quotas in Zimbabwe to trim down the huge current account deficit of $1,7 billion accrued in the first quota of the year due to the current large export-oriented growth.
“Challenges differ sector by sector in industry so Buy Zimbabwe is for the sectoral approach where we weigh the capacity of industry sector by sector against the national demand.
“Where we lack capacity we increase the import quotas to augment growth and competitive edge in that sector.
“We need our local industry to spur economic growth and tackle the increasing high unemployment rate.
“In South Africa there is an 80 percent local procurement quota in some sectors and they banned second-hand vehicles just to protect their car assembly industry.
“So in Zimbabwe if our manufacturing industry is strategic to the nation then we should also adopt such measures,” said Mr Burutsa.
Mr Burutsa, however, said the biggest limitation was Government’s adherence to policy.
“We can talk about the 2002 Presidential Order which, more like a 100 percent local procurement quota decree, stated that all vehicles purchased by Government and by other public institutions were to be procured from local vehicle assembly plants.
“However, present day this was not being implemented even after it was re-enacted in 2011. Lack of implementation by Government inasfar as procurement is concerned is the weakest point.
“As a country we will be able to save millions and boost local industry if we improve around local procurement systems, tighten our border posts and clamp down the dumping of cheap and sub-standard goods and service,” said Mr Burutsa.
OK Zimbabwe procurement executive Mr Muzvidzwa Chingaira said Zimbabwe needed to be pragmatic and innovative about procurement issues in the present globalised world.
“We need to position our procurement to have a competitive edge.
“South Africa is a BRICS (Brazil, Russia, India, China and South Africa) member so we have to be innovative to compete against them. Other than that we will continue to play the secondary role,” said Mr Chingaira.
CIPS Zimbabwe chairperson Ms Francisca Nyamukapa said consistent with the foregoing reality at both local and international level was the need to place procurement at its rightful place in the boardroom and assume the strategic role it deserved.
CIPS currently has 110 000 members in 155 countries, including developed and developing nations.
In Sub-Sahara they have 18 000 members in 43 countries.
Online Reporter