Govt pursues initiatives to increase local content, production
GOVERNMENT is confident its initiatives, including partnerships with key stakeholders, to drive the local production of goods will ensure the country does not become a “supermarket” for products from across the African continent and beyond.
Industry and Commerce Minister Mangaliso Ndhlovu made the remarks in a speech read on his behalf by the Secretary for Industry and Commerce Dr Thomas Utete Wushe at Buy Zimbabwe’s 13th annual awards held on Friday.
The ceremony, held for the first time in partnership with the Ministry of Industry and Commerce, sought to reward companies that continue to promote local production and procurement.
This comes as the Ministry of Industry and Commerce is implementing the local content strategy, which is anchored on stimulating the development of the local industry, value and supply chains.
The local content strategy also promotes local linkages among the agricultural, extractive, manufacturing, and service sectors.
According to the Buy Zimbabwe 2023 annual report, Zimbabwe’s cumulative trade deficit for the past four years reached US$6,8 billion, as the country continues to import vast products and services.
The Government is however, impressed by the positive strides that are coming from the localisation of production and procurement as evidenced by an increase in capacity utilisation to 66 percent in 2023 from 54 percent in 2020.
Shelf space occupancy has increasingly been taken up by locally manufactured basic products and now stands at 80 percent.
Minister Ndhlovu hailed the partnership between the Government and Buy Zimbabwe in the promotion of the growth of competitive industrial and commercial enterprises in the economy
He said his ministry worked closely with organisations like Buy Zimbabwe to implement its mandate to develop and promote the growth of competitive industrial and commercial enterprises in the economy.
“The ministry’s partnership with Buy Zimbabwe will not only enhance the production and consumption of locally produced goods, but will also help ensure that we do not end up being a supermarket for the African continent, only getting imports from other countries, therein risk inadvertently driving our local industry out of production, at a time when we should be growing the manufacturing sector’s contribution to gross domestic product.
“… Africa Continental Free Trade Area (AfCFTA) requires that the local industry produces goods and services that are competitive on both the domestic and international market,” added Minister Ndhlovu.
Minister Ndhlovu highlighted that the Government was also addressing challenges posed by the porous borders through which some products are illegally smuggled into the country and end up on supermarket shelves.
He said the Government would enhance its ties with Buy Zimbabwe to consolidate the gains in the food chain as well as increase local content in areas where support is still needed.
These sectors include the clothing and textile value chain, higher-end cosmetics, as well as leather value chain, where large imports are still being recorded costing the country the muchneeded foreign currency.
Buy Zimbabwe chairman Mr Munyaradzi Hwengwere said Buy Zimbabwe would not get tired of implementing its mandate to develop and promote the growth of competitive industrial and commercial enterprises in the economy.
He said more effort should be channelled towards reducing the ballooning import bill and ensuring that public procurement begins to favour locally manufactured products especially those with defined local content thresholds.
“Jointly we are committed to industrialise, mechanise, and modernise our industry so that we reduce the import bill.
“We must complete the work to ensure that our public procurement begins to favour goods made in Zimbabwe, with defined local content thresholds.
“We must push our treasury to incentivise companies that invest in local content. We must act now to ensure that opportunities that arise from the African continental free trade area do not skip us,” said Mr Hwengwere.
National Foods came out tops scooping the Company of The Year and the Manufacturer of The Year (FMCG), followed by Adam Bede which scooped the Quality Award accolade while Pfuko Mahewu of Dairibord won the Product of the Year Award.
Olivine won the Most Improved Manufacturer Award, while Chloride Zimbabwe walked away with the Manufacturer of the Year Award (Non-FMCG)
Tracey Mutaviri of Zimbabwe Sugar Sales (ZSS) was awarded Champion of the Year.