adminVandudzai Zirebwa Buy Zimbabwe
The past week has been good for local procurement. First it was the CZI at their annual congress who sought to exorcise the demons of the 2013 gathering by paying close attention to what esteemed delegates wear, drink, eat, and even speak. Then, the country’s industrialists gathered in the City of Kings, Bulwayo, only to endure themselves to the humiliating realisation that as they spoke about the need to support local industry they were fully enmeshed in foreign products.
The pens, folders, drinks and suits were all imported. The president of CZI Mr Charles Msipa had to make a public apology for industry to pay close attention to the small print.
In 2014 the message was well understood. It was local all the way.
There was also an uncharacteristic forcefulness by industry leaders on the imperative of buying local. For some time the language was that Zimbabwean industry needed to come to terms with realities of globalisation and seek to compete. Many feared asking for protection allegedly because that is not so cool in the modern world. However upon deeper examination of issues it has become clear that, as admirable the search for competitiveness is, Zimbabwe has the world determined to see her fail. For starters the country does not have a currency of her own. The main medium of exchange is the United States dollar, which continues to appreciate against currencies of our neighbours. Even the IMF has rung warning bells. To date the currency has appreciated fourty percent against the rand where we source close to 50 percent of our imports. The result has been that we have lost an ability to compete.
To the currency issue, add the fact that we do not have any meaningful foreign direct inflows and in fact we have become one big dumping grounds for countries all over the globe who are keen on accessing the dollars in circulation at relative ease. Even some guys from Mauritius who spoke at this year’s CZI congress wondered how they have become so successful in a country that used to be a fortress.
While we may have short memories, we now know that global powers do not suffer from such malady. They remember that Zimbabwe defied the world by embarking on a land reform programme and now wants to be known for changing the rules of the market through the indigenisation exercise. There is a determination to ensure that the socio economic model does not succeed.
The political economy that we operate in is one that is not suited to full economic liberal policies. Choices are thus simple. Either we take full economic liberal policies which means reconfiguring all our politics or we accept the model we have chosen as a country that puts priority on the local person and empowerment. Such policy demands that we recognise that we cannot continue with an agenda that allows local productivity to be siphoned out in order to develop economies elsewhere.
For many years, industry found such analysis difficult not only to accept but articulate publicly.
Company closures have nevertheless brought the message home loud and clear. Buy local or accept the inevitability of imminent death. Past President of CZI, Kumbirai Katsande summed up the sentiment quite well. He said if bold measures are not taken “Zimbabweans may just die smiling”.
With such background it was even more pleasing when the State Procurement Board decided enough is enough. They issued a directive to all public institutions that they can only procure locally assembled vehicles. The army and the police were the first causalities of the directive. Their tenders were thrown out and they were requested to engage fellow Zimbabweans at Quest Motors, Willowvale Mazda Motor Industries and Deven Engineering for Trucks and buses.
The State Procurement Board went further and announced that the local preference measures would be applied to other industries such as medicines, equipment and services.
Characteristic of the Zimbabwean spirit of Ubuntu, when good is done, efforts must be applauded. Government who have been at receiving end must thus be commended for a job well done.
The key now is to ensure that these measures are not ad hoc but that like our neighbours South Africa, there is a regulatory and legislative framework to enforce such arrangements as well as monitor compliance.
Just as well there is a Public Procurement conference slated for tomorrow in Harare where Minister Chinamasa is expected to outline plans and programmes that the government has put in place to ensure that public moneys are used efficiently and in ways that support the national agenda.
While our deficit or in accounting language, net loss, between January and June 2014 increased by a further 1,767 billion to reach a cumulative figure of 9,6 billion since 2012, with determination to use our national resources correctly we have every reason to believe we can soon be out of the woods. Infact many economists now realise that on a year by year basis we can easily trim $2 billion from the present net loss which has been averaging $3 billion over the past four years. By 2018 that would mean Zimbabwe is no longer in red by now enjoys a surplus.
What we need is boldness and accurate assessment of our situation. The past week has been a good week for the buy local initiative but it is just the first step in a journey of a one thousand miles. Let us Buy Local and transform our economy.
Till we meet again, God bless.
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Online Reporter