State enterprises urged to procure locally

Ngoni Dapira Business Correspondent
THE Manicaland business community has called on Government to compel state enterprises and parastatals to buy locally and circulate the money internally.

This was highlighted during the tour of industry in Mutare by Vice-President Emmerson Mnangagwa last Thursday and Friday.

Captains of industry said the liquidity challenges in the country were being fuelled by the export of money by parastatals and state enterprises that import locally manufactured goods regardless of the incumbent Government endorsed Buy Zimbabwe campaign.

Quest Motors chairman Dr Gulam Adams said challenges in the local motor industry have resulted in the country spending over $5,3 billion on car imports since 2009.

“We really need manufacturing industry to come up and create jobs. We hope the policies being implemented will be followed as we continue to call for the Buy Zimbabwe campaign and move from the imports syndrome,” said Dr Fernandes.

According to the Zimbabwe National Statistics Agency, in January alone Zimbabweans imported goods worth $400 million compared to $482 million in December last year. The trend indicates a 17,3 percent drop in the monthly import bill.

Last year the country’s trade deficit from January to November last year widened to $3 billion compared to $2,97 billion in the previous same period, an indication that the country continues to rely on imports as local industry remains depressed.

Trade figures showed that exports amounted to $2,5 billion against $5,5bn imports.

Manica Boards and Doors managing director, Mr Kurai Matscheza revealed that 75 percent of its produce was being exported while only 25 percent is sold locally.

He said though the country’s construction sector is currently heavily hit, there was need to cut on imports of its hardboard products by parastatals such as National Social Security Authority which have a lot of construction projects.

“We are exporting our hardboard products to countries like Australia, Democratic Republic of Congo, Mozambique and Zambia, but locally we receive little support.

“Our hardwood products are world-class standards but some local companies prefer importing from South Africa when we need to contain every dime given our liquidity constraints in the country,” he said.

CZI Manicaland chairman, Mr Richard Chiwandire said there was need for rapport between business, Government and consumers in the revival process of the country’s manufacturing industry.

“Rapport is important between business, Government and consumers to best drive the country’s economic revival programme.

“Our import bill on non-essential items is too high and this needs to be addressed.

“Without industry, our economy is grounded so consumers also need to understand the Buy Zimbabwe initiative from that perspective.

“But Government enterprises should lead by example and reduce the appalling high import bill of non-essential items and locally manufactured goods,” said Mr Chiwandire.

VP Mnangagwa agreed that there was need to put into effect procurement measures of parastatals and Government institutions to help boost local industry.

“Quest should be a hive of activity given what I have seen.

“If we implement procurement policies that Government institutions alone buy locally, business will definitely boom for our companies like Quest Motors, Cairns Foods and Manica Boards and Doors and Tanganda Tea Company that I toured in Mutare.

“What more if we rope in parastatals like Zesa (Zimbabwe Electricity Supply Authority) that buy hundreds of cars each year.

“Your vehicles at Quest are up to standard but we are importing,” said the VP.

“I now see the potential. In the next Cabinet meeting I will definitely support the Minister of Industry and Commerce to add weight to his submissions on procurement quotas and temporary protectionist measures,” said the Vice President.

He however called on industry to make every effort to produce world class standards and not plan to hide behind protectionism at the expense of consumers.

The Minister of Energy and Power Development Dr Samuel Undenge concurred and said there was need to identify and nurture specific key industries that will grow the economy and help realise Government agenda to create 2,2 million jobs by 2020.

He said some industries were now ‘sunset industries’ that Government must not waste time and resources to revive under the Distressed Industries and Marginalised Areas Fund.