Local manufacturers urged to charge competitively

SUPPLIERS of goods and services should be competitive in their pricing to enable local companies to buy their products and support their businesses.

Speaking during a mining indaba, the Zimbabwe Chamber of Mines chief executive officer Isaac Kwesu said the sector was willing to give priority to local producers provided they work around their pricing models.

“We subscribe to the buy local idea. We always like to buy local content and our miners have been giving priority to locally manufactured products, but the situation obtaining on the ground means suppliers have to be very competitive. “We are in the survival mode please try by all means to reduce margins, mark ups and additions to your costs,” he said.

Kwesu said miners did not like to import commodities but under the prevailing conditions they may be forced to look for cheaper inputs for their business which would be in the form of imports.

“So local manufacturers, we want to support you but make sure we are in this game together. When we are up, we are up together, when we are down we are down together.

“We should work around the issues of costs and they should come down because we still want to increase our footprints, inclusivity and broader contribution of mining to associate industries. It’s not our desire to import but I hope you understand the situation,” he said.

According to The State of Mining Industry Survey Report Prospects for 2024, most mining companies are undertaking various projects to support the development of local enterprises.

An analysis of survey responses show that approximately 15 percent of procurement in the mining industry was locally produced manufactured products.

Other initiatives to promote local content which were cited by respondent executives include local enterprise development programmes, mining business procuring from local suppliers (exploration, drilling, blasting, loading and haulage) and systematic employment of local community members.

Mining executives cited poor quality products, long delivery timelines, high costs, lack of credit facilities and lack of after sale backup as undermining local content in the mining industry. — New Ziana.