Victoria Ruzvidzo Business Focus
A figure of $2 billion is no small change, particularly for an economy that could literally use every cent it can get. Reports this week that investigations have revealed that Zimbabwe could save $2 billion if it relied more on local production than on imports is something that we should not just absorb lamely. We need to act and act now.

Over the past decade or so, billions of dollars have crossed borders to enrich other economies while our own local industry has been struggling to survive. What makes it even more saddening is the fact that at least 40 percent of imports could be avoided if local industry was performing well but for one reason or the other, firms have been found wanting, leaving people with no choice but to look elsewhere for supplies even of such basic stuff as cooking oil, bath soap and milk.

Of course there are some instances where many have capitalised on cheaper imports, even for products that are readily available in this country such as fruits and vegetables, toiletries and machinery, among other things.

The high cost of production generally encountered here have not compared well with imports from countries with higher economies of scale hence the desire to go for the less expensive imports.

A record volume of imports was witnessed particularly in 2007-2009 when shelves became empty. But this has become a habit that is difficult to wear off because even now when more goods are available locally, preference is still generally in favour of imports.

Consumers feel their needs are still satisfied better by South Africa, Zambia, Dubai and other such markets from where Zimbabweans have been sourcing products and services. Whether the cheaper imports ultimately become expensive in terms of the effects on the economy is something that many are not worried about.

Looking at it bluntly, more imports means more jobs are being exported but consumers are not particularly concerned with this global picture as they are more worried about the pricing and quality that they can get.

Furthermore, serving imported foodstuffs or wearing imported clothes is also viewed as a status symbol hence it would be difficult to get all Zimbabweans going 100 percent local. Besides, as things stand, local supplies would not be able to meet the demand if consumers were to change their buying patterns.

This all points to the need for local companies to access funding, at concessionary rates, so they can produce competitively to fend off competition from imports.

Production levels are currently at slightly above 39 percent, an unhealthy state of affairs by any measure as most factories are failing to produce optimally. A critical shortage of working capital and funds for recapitalisation have remained the greatest challenges for firms, with many closing in their numbers while those that have remained still find the going tough.

Given such a state of affairs, it would obviously be folly for anyone to think that local suppliers could meet demand and yet on the other hand, local producers need support to enable them to produce more. It’s a delicate situation that needs actuarial acumen to resolve.

Its untenable for a country to be importing $3 billion worth of goods in the first half of this year while realising much lower from exports. It creates a skewed balance of payments position that compounds an already precarious financial position this country finds itself in.

The fact that the import bill dropped from $3,9 billion in the corresponding period is something worth celebrating but the figure remains too high.
What is required is for industry to start producing good quality products that can effectively compete with imports. As alluded to early, it is virtually impossible to shun imports completely but consumers will certainly go for local produce if the quality and price is satisfactory.

Over the past few months we have seen more local products occupy shelves in supermarkets but the prices remain higher that imports. This has to do with production costs but we feel that as the economy heals, we will begin to see local products becoming more competitive.

I have also noted that unlike in previous years, consumers are slowly preferring local produce to imports, particularly in instances where the quality is good. This is progressive, for an economy like ours that would need to preserve and conserve funds.

Such initiatives as Brand Zimbabwe and the Buy Zimbabwe campaigns seem to be assuming real meaning of late that their potential will remain compromised if activity in industry remains subdued. We need to be patriotic and support our local firms but this should not be at a cost to the consumer.

Deliberate efforts need to be employed to ensure that goods and services are of a high quality that leaves a customer satisfied and actually proud to be Zimbabwean.

The Proudly South African initiative has paid off immensely for that country largely because high quality products are the order of the day and not the exception as is sometimes the case here.

Such concepts have potential to transform the economy if backed by proper production systems and formulas. We have seen a number of companies attain ISO certification over the last decade but some of them have remained with just the certificates on the walls while applying short cuts that have compromised quality.

Of course they are not entirely to blame given what the economy has grown through but if they desire to remain competitive in this global village, they have no choice but to play ball.

The Zimbabwe Agenda for Sustainable Socio-Economic Transformation i9s anchored on capacitating the productive sectors of the economy, supported by both the monetary and fiscal policies. This strategy should begin to yield fruit in the medium term.

We have seen individual companies such as Bata Shoe company, Delta, Dairibord, Unilever, the three mobile services providers and others going out of their way to retain customers and in some instances expand their customer base through deliberate strategies to better their products.

This is the kind of innovation that will leave consumers with no choice but to buy local. Many should seek to emulate these efforts, despite prevailing challenges. Mourning day and night about the economic environment will not bring customers. It is time that firms realised that despite the global picture, at individual level they can still do something to make their products more attractive.

Imports, in some sectors, may have had an upper hand pre-2009 but since then, some of them are being given a run for their money. Firms need to leave their comfort zones (if we can still refer to the zones as such) and seek to do that which will retain or attract consumers.

Once the trust in local produce grows, imports will naturally find their way out of the market whether stringent import regulations are applied or not.
Of course we will still need high import duties for such products as fruits and vegetables, cheap clothing and others that are being unfairly dumped onto the local market.

Value addition is another factor that will make local produce not only competitive here but also on the international markets, thus earning the country some dollars in the process.

Lets all do the best we can to ensure we plug loopholes and avoid unnecessary imports. We hope funding will become increasingly available to bail out those firms with potential to do better than they presently are.

As consumers we also need to watch our spending patters. Importing trinkets is harmful to the economy. Lets spend the dollar wisely and ensure we serve not just $2 billion but even more as our country seeks to recover.

In God I Trust!

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