Business / Economy
The case for buying Zimbabwe products
24 May 2013 at 03:30hrs | Views
AS we edge towards the Buy Zimbabwe Procurement Conference scheduled for Monday May 27, at the Meikles Hotel, the demand for decisiveness in taking practical steps to reduce the current unsustainable import deficit by, among other things, definitive local procurement quotas, has gained momentum
On Wednesday, the Ministry of Mines and Mining Development held the last of its public consultation processes on the mining policy in Harare and while there were a number of issues which were raised by the public and the ministry itself pertaining to the direction our country should take in governing the mining sector, the most dominant focus was on the need to ensure that procurement programmes by the sector should be structured in favour of local manufacturers and suppliers.
China, South Africa and Australia were cited as countries that link their efforts to drive economic growth, create wealth and reduce unemployment with the need to ensure that locals are part and parcel of the activity within the mining sector.
The same countries have also created the necessary tax and legal regime that favours organisations who favour locals in their procurement practices.
Similarly, at the Chamber of Mines' Annual General Meeting which was held in Nyanga, from May 16 to 17, a general consensus was that the mining industry needed to develop strong linkages between itself and the manufacturing sector for Zimbabwe to reduce high levels of unemployment currently hovering at over 70 percent and set a basis for sustainable economic recovery.
Buy Zimbabwe also challenged the Chamber of Mines, who interestingly have a Joint Suppliers and Local Procurement Sub-Committee to be a little more proactive in supporting local suppliers.
A suggestion was for the Chamber to begin a process that seeks to establish a strong data base of various suppliers of quality local goods and services and minimise the convenient but inappropriate reliance on suppliers having to knock on doors of various mining houses to search for contracts.
Such a practice not only perpetuates corruption, closes doors for competent but less well-known new entrants but entrenches a feeling that the mining industry uses local procurement as political rhetoric and yet does little in practical terms to show its commitment to systematically growing the share of local participants.
In any case without deliberate measures to identify the right suppliers, how can the mining sector ever get to assess its own progress in supporting what they pronounce as a noble initiative?
Former Minister of Mines and current chairman of the Parliamentary Committee on Mines and Mining Development Mr Edward Chindori-Chininga was also quick to remind miners that it was in their own interest to begin concerted local procurement programmes aimed at alleviating poverty and aligning the industry to the needs of the local economy. He warned that the failure to take a lead in structuring win-win partnerships between miners and local suppliers will result in Government imposing conditions for compliance.
The incoming president of the Chamber of Mines, Mr Alex Mhembere, in his acceptance speech, seemed right on point when he underscored the need for miners to engage in programmes that align their interest with that of the country.
However, what seems to emerge in all these discussions is that while the need for local procurement is well understood various institutional, legal and physiological loopholes are militating against local procurement.
The absence of a legal framework that is clear and stipulates minimum threshold has been major draw- back.
As a result, Government which is expected to take a lead in local procurement has become major culprit and cited periodically for doing things that have caused the demise of the motor industry and a once vibrant pharmaceutical sector.
Instead of deploying financial resources to ensure the growth of the local industry, the State Procurement Board and various governmental bodies, parastatals and local authorities are at liberty in procuring goods and services without any local content.
Due of lack of legal recourse, Zimbabweans who are at the receiving end of these poor decisions do not have any choice but to continue mourning at the worsening conditions in their own country.
The "foreign is better mindset" amongst us has also created an unfortunate perception that has resulted in companies including those at the receiving end of imports opting for foreign alternatives because they believe local products and services are inherently inferior and less competitive.
Instead of doing the little they can to identify those products that meet their criteria they have become entirely dismissive to local products.
In our roadshows as Buy Zimbabwe, we also note an unfortunate tendency by our fellow countrymen and women, to believe that all Zimbabwean products are inferior, more expensive and less competitive.
While recognising that indeed the bulk of local goods and services are yet to meet stringent competitiveness criteria, we have repeatedly noted that amidst these challenges Zimbabwe has products that can beat any around the world.
We have also pointed out efforts by companies such as Dairibord to repackage their products in packages that compete with those of similar imported dairy products. As such as we cite products that are not competitive, it is equally important for us as a country to realise efforts being made to improve the look, feel, appeal and quality of our products.
Buy Zimbabwe recognises that it is neither desirable or practical to realise 100 percent consumption of local products and services.
However, in the interest of building our own prosperity, ensuring that our country's graduates find employment, and sustaining economic growth and preserving jobs, it is absolutely critical that we seek ways and means of ensuring that every household commits at least 30 percent to local products and services.
The Buy Zimbabwe procurement conference is aimed at ensuring that while we attend to bottlenecks that constrain our local industry we begin a process by Government and private sector to set aside a definite quota for local products and services.
The conference also seeks to begin laying ground work for intensive lobbying for our country to enact a procurement law that compels Zimbabwean organisations, especially Government, to favour local suppliers in tenders.
As we have previously noted the procurement conference will also witness the launch of two programmes.
The first will be the Buy Zimbabwe awards, to reward companies that secure services and products locally.
The second is an empowerment index, which is a regular survey focusing on the public sector and seeks to measure and publicise the amount of money that goes to local suppliers and that which goes to foreign suppliers. The keynote speaker at the conference, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, is expected to outline ways in which the current indigenisation programme can be utilised to favour local suppliers.
We also expect Zimbabwe Revenue Authority Commissioner-General Gershem Pasi, whose organisation is at the centre of the import and export matrix in Zimbabwe, to provide insight into how stakeholders can support the country in reducing its import bill, which at over US$3,5 billion deficit cannot be allowed to continue growing.
While we eagerly await for the conference, we once again underline that not Buying Zimbabwe is investing in poverty.
Let us do the right things to create wealth, jobs and pride, let's Buy Zimbabwe. Till we meet again, thank you for your responses.
God Bless.
--------------
Email. vandudzai@buyzimbabwe.org.zw Cell +263773751878
On Wednesday, the Ministry of Mines and Mining Development held the last of its public consultation processes on the mining policy in Harare and while there were a number of issues which were raised by the public and the ministry itself pertaining to the direction our country should take in governing the mining sector, the most dominant focus was on the need to ensure that procurement programmes by the sector should be structured in favour of local manufacturers and suppliers.
China, South Africa and Australia were cited as countries that link their efforts to drive economic growth, create wealth and reduce unemployment with the need to ensure that locals are part and parcel of the activity within the mining sector.
The same countries have also created the necessary tax and legal regime that favours organisations who favour locals in their procurement practices.
Similarly, at the Chamber of Mines' Annual General Meeting which was held in Nyanga, from May 16 to 17, a general consensus was that the mining industry needed to develop strong linkages between itself and the manufacturing sector for Zimbabwe to reduce high levels of unemployment currently hovering at over 70 percent and set a basis for sustainable economic recovery.
Buy Zimbabwe also challenged the Chamber of Mines, who interestingly have a Joint Suppliers and Local Procurement Sub-Committee to be a little more proactive in supporting local suppliers.
A suggestion was for the Chamber to begin a process that seeks to establish a strong data base of various suppliers of quality local goods and services and minimise the convenient but inappropriate reliance on suppliers having to knock on doors of various mining houses to search for contracts.
Such a practice not only perpetuates corruption, closes doors for competent but less well-known new entrants but entrenches a feeling that the mining industry uses local procurement as political rhetoric and yet does little in practical terms to show its commitment to systematically growing the share of local participants.
In any case without deliberate measures to identify the right suppliers, how can the mining sector ever get to assess its own progress in supporting what they pronounce as a noble initiative?
Former Minister of Mines and current chairman of the Parliamentary Committee on Mines and Mining Development Mr Edward Chindori-Chininga was also quick to remind miners that it was in their own interest to begin concerted local procurement programmes aimed at alleviating poverty and aligning the industry to the needs of the local economy. He warned that the failure to take a lead in structuring win-win partnerships between miners and local suppliers will result in Government imposing conditions for compliance.
The incoming president of the Chamber of Mines, Mr Alex Mhembere, in his acceptance speech, seemed right on point when he underscored the need for miners to engage in programmes that align their interest with that of the country.
However, what seems to emerge in all these discussions is that while the need for local procurement is well understood various institutional, legal and physiological loopholes are militating against local procurement.
The absence of a legal framework that is clear and stipulates minimum threshold has been major draw- back.
As a result, Government which is expected to take a lead in local procurement has become major culprit and cited periodically for doing things that have caused the demise of the motor industry and a once vibrant pharmaceutical sector.
Instead of deploying financial resources to ensure the growth of the local industry, the State Procurement Board and various governmental bodies, parastatals and local authorities are at liberty in procuring goods and services without any local content.
Due of lack of legal recourse, Zimbabweans who are at the receiving end of these poor decisions do not have any choice but to continue mourning at the worsening conditions in their own country.
Instead of doing the little they can to identify those products that meet their criteria they have become entirely dismissive to local products.
In our roadshows as Buy Zimbabwe, we also note an unfortunate tendency by our fellow countrymen and women, to believe that all Zimbabwean products are inferior, more expensive and less competitive.
While recognising that indeed the bulk of local goods and services are yet to meet stringent competitiveness criteria, we have repeatedly noted that amidst these challenges Zimbabwe has products that can beat any around the world.
We have also pointed out efforts by companies such as Dairibord to repackage their products in packages that compete with those of similar imported dairy products. As such as we cite products that are not competitive, it is equally important for us as a country to realise efforts being made to improve the look, feel, appeal and quality of our products.
Buy Zimbabwe recognises that it is neither desirable or practical to realise 100 percent consumption of local products and services.
However, in the interest of building our own prosperity, ensuring that our country's graduates find employment, and sustaining economic growth and preserving jobs, it is absolutely critical that we seek ways and means of ensuring that every household commits at least 30 percent to local products and services.
The Buy Zimbabwe procurement conference is aimed at ensuring that while we attend to bottlenecks that constrain our local industry we begin a process by Government and private sector to set aside a definite quota for local products and services.
The conference also seeks to begin laying ground work for intensive lobbying for our country to enact a procurement law that compels Zimbabwean organisations, especially Government, to favour local suppliers in tenders.
As we have previously noted the procurement conference will also witness the launch of two programmes.
The first will be the Buy Zimbabwe awards, to reward companies that secure services and products locally.
The second is an empowerment index, which is a regular survey focusing on the public sector and seeks to measure and publicise the amount of money that goes to local suppliers and that which goes to foreign suppliers. The keynote speaker at the conference, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere, is expected to outline ways in which the current indigenisation programme can be utilised to favour local suppliers.
We also expect Zimbabwe Revenue Authority Commissioner-General Gershem Pasi, whose organisation is at the centre of the import and export matrix in Zimbabwe, to provide insight into how stakeholders can support the country in reducing its import bill, which at over US$3,5 billion deficit cannot be allowed to continue growing.
While we eagerly await for the conference, we once again underline that not Buying Zimbabwe is investing in poverty.
Let us do the right things to create wealth, jobs and pride, let's Buy Zimbabwe. Till we meet again, thank you for your responses.
God Bless.
--------------
Email. vandudzai@buyzimbabwe.org.zw Cell +263773751878
Source - buyzimbabwe
