Home » Business » Local Companies Should Up Production – Buy Zimbabwe

Local lobby group Buy Zimbabwe yesterday said Government should expedite the implementation of policies to support robust local production of goods.Buy Zimbabwe chairperson for business affairs Mr Oswell Binha yesterday told journalists that it is high time that action and not speeches should take centre stage.

“The current levels of production in the manufacturing sector will continue rendering the local industry uncompetitive and drastic measures should be taken to correct the situation,” said Mr Binha.

He said local companies should increase their production capacities in order for them to be competitive against the influx of imports in the country.

The local industry is currently operating at 30-35 percent capacity and such a situation has rendered most companies uncompetitive.

The country’s huge trade deficit, averaging $250 million per month, is creating a situation where money, which is supposed to circulate internally is in fact being exported by financing imports.

The gap is expected to widen further as the local industry continues to struggle to meet consumer demand and the huge deficit shows that there is a market readily available in Zimbabwe which local manufacturers could tap into.

He said issues to do with competitiveness will be discussed at the 5th Buy Local Summit to be held from June 17-19 in Victoria Falls.

The event is aimed at bringing together key business leaders, decision makers and Government officials, to discuss critical issues relating to the economic development of Zimbabwe

The conference will run under the theme “Enhancing Local Preference for Industry Revival”.

Mr Binha said from its inception Buy Zimbabwe has worked tirelessly towards building the competitiveness of local industry.

“Buy Zimbabwe’s drive is to safeguard and create jobs as well as local wealth and is gratified that its calls have not gone unheeded, as more companies are joining the crusade for promoting local products and services.

“The inaugural Buy Local Summit held in 2011 marked the official launch of Buy Zimbabwe as an initiative to lobby for the changes necessary to promote the increased production and consumption of local goods and services,” said Mr Binha.

He said the 2015 Buy Local summit is coming at an opportune time, as the nation, reeling under the burden of a high import bill, has fully realised the need to capacitate local products as the ultimate solution out of this economic quagmire.

The annual conference will create a platform for local companies to explore opportunities to increase their market share and competitiveness.

This is against a background of low funding, high cost of borrowing, ageing plant, equipment and machinery, inconsistent power supply as well as weak distribution linkages with domestic suppliers among several aerse variables with a specific focus on the mining industry, the ICT sector and export and import oriented industries.

The participating companies would not only build a collective mindset to be creative and innovative, but would also realise the need to raise the quality of local products in line with global standards.

The anticipated resolutions of the conference, which will be mutually beneficial to all stakeholders, would feed into the implementation of Zim-Asset and in the related policy framework of the country.

Source : The Herald