adminOliver Kazunga Senior Business Reporter
ZIMBABWEAN companies should collectively engage Tanzanian authorities to allay the negative perception about the local industry’s capacity to produce and supply that country.
Africa Corporate Advisors director, Mr Malvern Rusike said this during a seminar in Bulawayo on Friday while presenting findings of a recent market research on trade and investment opportunities in Tanzania, which they conducted on behalf of ZimTrade, the country’s export promotion agency.
Mr Rusike said while in Tanzania, they were asked some “arrogant” questions based on the prevailing economic climate about the local industry’s capacity to supply.
“When we were conducting the market research about trade and investment opportunities in Tanzania, we were met with some questions that we felt were arrogant. And one such a question was, ‘Do you still have functional industries?’
“Before doing the market research, we also consult the companies in different sectors to find out if they have the capacity to export,” he said.
The Tanzania export market is sceptical about Zimbabwe industries due to the prevailing economic climate that has seen local companies grappling to improve capacity utilisation to competitive levels.
According to the Confederation of Zimbabwe Industries (CZI), capacity utilisation in the manufacturing sector closed the year at 34,3 percent in 2015.
CZI has indicated that this was due to a myriad of challenges among them liquidity constraints, antiquated machinery and stiff competition from imported products.
In this light, CZI has announced that the United Nations Industrial Development Organisation will this month launch Zimbabwe’s country industrialisation programme.
The country industrialisation programme seeks to revitalise industrial growth through value addition and beneficiation across value chains in all economic sectors.
Mr Rusike said Tanzania has trade and investment opportunities in areas such as pharmaceuticals, agriculture, construction, engineering, clothing and textiles, leather and footwear sectors.
“We spoke to the Medical Stores Department (MSD) and this is what we got: They’ve got 60 percent market share and now they’ve been mandated by their government to import anywhere directly in the world.
“As part of the strategies to penetrate that market, local businesses, for example those in the pharmaceutical sector, should collectively visit MSD and validate their technology and capacity to deliver,” said Mr Rusike.
“For companies in the construction industry, they must collectively engage the Tanzania contractor registration body to prove their technology and capacity to deliver.”
He said Tanzania’s major imports include pharmaceutical products, electrical and electronic products, plastics, clothing and textile, as well as leather and footwear products.
At present, Mr Rusike said Tanzania imports from China, India, South Africa, Japan, Malaysia and Korea.
He said Zimbabwe construction companies should tap into the Tanzanian market taking advantage of vast construction projects taking place there.
Mr Rusike noted that local industries can penetrate the export market through joint ventures, and Public-Private Partnerships, dealer agreements and distributor agreements.
Responding to a question from the floor, ZimTrade acting chief executive officer Mr Allan Majuru said it was imperative for the local industries to improve on competitiveness.
“For our industries, competitiveness and working on the ease of doing business is key. So long as the product isn’t produced competitively, it will be difficult for companies to penetrate export markets,” he said.
Online Reporter