adminVandudzayi Zirebwa Buy Zimbabwe
Many liberal economists have of late sought to reverse the call for minimum local content in our retail shops by arguing that such a move would increase prices and that it would result in the acceptance of mediocre Zimbabwean products.
They have also argued that Zimbabwean products must and foremost be competitive before any preferential legislative arrangements are put in place.
While very few would argue that our industry and its products and services fare much lower than the rest of the world and South Africa in terms of competitiveness, Buy Zimbabwe and those in industry are concerned that we are being blind to regional and global realities that are pushing us down.
Whether we like it not, it is a fact that South Africa offers incentives to its producers to export products.
Each year billions of rands are given to industry as a reward for employing local South Africans and exporting to markets such as ours.
It is also a well known fact that when South Africa sought to protect herself against cheaper goods from China in the main, that country’s Department of Trade and Industry DTI, played an active role in causing the signing of the 70 percent local procurement accord across the entire value chain.
Its stringent Black Economic Empowerment programme issues certificates for compliance on the basis of employment equity, local procurement and development of human capital.
Without such a certificate it is almost impossible to secure a contract in South Africa, let alone enjoy a number of preferential incentives that the country offers.
All this is then buttressed by a law that stipulates 50 percent local procurement and a constitution that also guarantees the right of locals to enjoy preference.
This same country, which has a host of measures to protect its own, is our biggest trading partner.
As such, when proponents against minimum local stipulation speak we assume they are suggesting that the Zimbabwean industry which is known to exist under a very challenging operational environment that has no credit, old equipment and no fiscal incentives must compete on the same footing.
The question is how can they? Even if credit was availed in buckets and new equipment was installed chances are we will not be able to match or beat South African companies because their Government has taken very clear steps to protect their own.
Some have gone back to Adam Smith’s recycled argument that says as long as we are competitive we will be ultimate winners through lower prices and better quality.
The sad part is that by the time such an opportunity comes along all skilled labour may have been poached and costs of re-entry into the market place might be prohibitive.
By inference if we continue to allow the current situation to exist the possibility of ever resuscitating our industry and commerce will become almost non- existent. We must choose our destiny now and desist from making arguments that we know are unlikely to save our cause.
In the call for minimum local stipulation Buy Zimbabwe and the rest of Industry have been very generous.
We have suggested that to ensure that we remain open to competition; we can start at 50 percent against a South African scenario that has gone as high as 70 percent. In fact, without any further persuasion some shops in South Africa are now at 100 percent.
While our own 75 local content in music is still to be fully adhered to, most agree that without it, our musicians would still be playing second of third rate to foreign musicians.
Once upon a time, some DJs in this country took pride in not having a single Zimbabwean song in their collection. Since the promulgation of that law not only has Zimbabwe become very competitive on the music scene but gone are the days when Oliver Mtukudzi had to continuously be a supporting act to substandard foreign musicians.
Now every promoter with an interest in bringing a foreign act first and foremost worries if Oliver Mtukudzi is playing at a rivalry venue. They also make sure that local musicians are part of the line up.
Just recently, Nigerian musician D’banj who was paid huge amounts by a local company to play in Zimbabwe was taken to the cleaners by our very own Winky D at a concert where the foreigner was the main act.
He has since been rechristened Dejunk by some newspapers following his sub standard performance.
In as much as we request Government to work with other stakeholders to recondition the mind of our corporates the reality is that, such a programme will take time. Meanwhile our industries will be closing by the dozens each day.
An immediate and mandatory minimum 50 percent local content will bring sanity to our nation while allowing for us to remain open to foreign competition.
Zimbabwean companies that benefit from that local content stipulation but seek to exploit consumers will sadly realise that there are many others on the sidelines that are awaiting to take their space.
Of course we also think new investors encouraged by this reality will begin to pour money to repair machinery knowing fully well that our industry will survive.
Let us stop being blind to global and regional realities and do the right thing. Competitiveness yes but what our industry faces is a programme that goes beyond that.
We owe it to next generations of this country to remain prosperous, generate wealth and create jobs.
The time to stop using competitiveness as a pretext to killing our industry is now.
Email: [email protected], cell 0773751878
Online Reporter