adminVandudzai Zirebwa Buy Zimbabwe
AS we go towards the end of 2013, the depressing economic statistics pertaining to our imports continue.
Latest figures from Zimstats indicate that our deficit has now surpassed US$3,2 billion and is projected to inch very close to US$4 billion by year end. Even economic liberal institutions such as the African Development Bank have sounded the alarm bells and advised our Government to take urgent steps to ensure that our dependence on imports is put to a halt.
It is against this background that the much anticipated Buy Zimbabwe Retailers and Suppliers Conference was held. These parties with the support of the Ministry of Industry and Commerce were expected to come together in a no-holds-barred discussion to examine circumstances that have seen our supermarket shelves that were once a fortress for local goods now dominated by imports. Importantly, the parties were expected to craft actionable solutions on reversing this tide.
During the conference Industry and Commerce Minister Mike Bimha, who was guest of honour, explained the dilemma that the country is faced with. On the one hand, there must be an acceptance that Zimbabwe exists within the global competitive environment where rules and regulations compel us to open up our borders and allow free trade. On the other hand, Government has a responsibility to feed the nation, to secure jobs and to create wealth.
He cited the current impasse that is threatening to tear apart the sugar industry. While our Lowveld has continued to produce sugar and has the capacity to supply national needs and beyond, local prices cannot match those from countries as far afield as Brazil and Argentina. As a result, the local industry which has the responsibility to pay bills to thousands of employees and play a part in turning around the the economy is faced with collapse as our importers have a field day.
In those circumstances, the Government has to make a choice between allowing the so-called free market to reign or intervene to save lives of Zimbabweans. Thankfully, the minister was clear on which side decisions will favour.
Having said that, Minister Bimha was also quick to advise industry to utilise the current challenges as opportunities not only for resilience but innovation. He cited two examples of factories in Bulawayo which have demonstrated both. One is not in operation but awaiting for NewZimsteel to open as it believes then its heavens will open. Each day the company’s managing director and a few senior managers converge at a disused factory just waiting for the day when Kwekwe will start running for them to take a cue that time has come to start all over. The other example pertains to a factory just next door whose principals decided to innovate and search for new opportunities. These guys are now in the process of setting up a factory in Harare. All they request is for the ministry to assist in securing land so that they can begin their new operations.
In his politeness the minister was not prescriptive on which between the two examples is to emulated as both show a determination to realise a better future. However, it seems obvious that, one of these has chosen to place the fate of its future in external realities while the other took it upon themselves to change their fortunes.
Aside the minister, the well-attended conference suggested that a number of problems that we have as a country sometimes have to do with the fact that we just do not meet to face each other and discuss common challenges.
Ok Zimbabwe Chief Operations Officer Mr Albert Katsande was at pains to dispel the notion that retailers are at the forefront of pushing for imports at the expense of the products from the local industry. He noted that the current scenario is detrimental to his group as much as it is to the rest of the country. It means, for starters, that Zimbabwean retailers are constrained in their ability to expand to other countries in the region as that would mean you compete against foreign retailers on the basis of products from their own home products.
His views were supported by fellow retailers who expressed a commitment to working with suppliers in ensuring that Zimbabwe regains top preference on the local shelves.
These views were most welcome by suppliers present who felt that the two parties would benefit by ensuring that the Zimbabwean economy is enhanced.
However, what was of concern was a feeling that our retailers are overplaying the sovereignty of the consumer by suggesting that they have no way of influencing the current trends and practices.
Suppliers strongly expressed a wish for Government to put in place some minimum local content threshold that would govern levels of local stocks by our retailers in their promotions and within their shelves. It was felt that left to their own devices our retailers are unlikely to sacrifice the current advantage they have of bargaining locals against the rest of the world.
Thus a key resolution, which even our retailers could not totally dispute, was that we need to take the example set by South Africa of setting up a threshold of local quota for our retailers. Such a quota must be mandatory in promotions and general stocking within the retail space.
A call within the conference was also for Buy Zimbabwe to redouble its efforts of raising awareness not only on the requirement for consumers to support Zimbabwean goods and services but critically working within the retail space to push for local preference. Clearly, a major challenge that is facing Zimbabwean companies is their inability to secure advertising budgets necessary to compete against well-financed imports. A proposal made was to begin pulling together as a bloc by sharing marketing budgets.
An added demand for Buy Zimbabwe was to engage in more research and monitoring of practices by different retailers. Inasmuch as they are some retailers who are in favour in Buying Zimbabwe, what is also evident is the emergence of a disturbing tendency by some leading retailers who seem against a push for local preference.
When all is said and done it was obvious that the conference was long overdue and that issues are many and require continuous engagement by our key parties. Government has promised to play its part. Stakeholders have to accept that we cannot continue with business as usual. Together we can reverse this worrisome tide of imports.
Buying Zimbabwe has become even more necessary. Surely, when the World Bank says, we must reduce imports, Zimbabweans must take heed.
Till next week. God bless.
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Online Reporter