Buy Zimbabwe, SI64 initiatives commendable

Bongani E. Mushanyuri Correspondent
The Buy Zimbabwe and SI 64 concepts are commendable as they aggressively pursue consumption of locally produced goods. These initiatives are testament of Government efforts that seek to promote capacity utilisation by local firms. It is imperative that the country’s economy urgently realises a sustainable upward trajectory. For this to happen, the Buy Zimbabwe concept and SI 64 are important.

Increased consumption of locally produced products is fundamental in reducing the demand for imports which goes a long way in stabilising exchange rates and balancing terms of trade with international trading partners. Statutory Instrument No. 64 of 2016, which restricts the importation of certain categories of goods, leads the way in advocating for local consumption.

The commitment by the Government to resuscitate local industries is unquestionable and must be embraced and complemented by all local businesses. Business firms must take advantage of the Buy Zimbabwe concept and other Government initiatives in a positive way.

The positive exploitation of the Buy Zimbabwe and SI 64 can bring about phenomenal outcomes to the firms and the economy at large. Sustainable capacity utilisation and employment creation are the major expected spin-offs emanating from these initiatives.

However, the Buy Zimbabwe and SI 64 can be exploited negatively by firms, especially when artificial shortages start to surface. Unpatriotic firms may choose to create shortages in order to hike prices, leaving the customer the major loser as has been witnessed recently.

The convenient reason proffered for the shortages and price hikes is unavailability of foreign currency. Indeed, the country has been battling with acute foreign currency shortages for years now, but definitely this cannot be cited as the reason for the recent sudden price hikes for meat products, bread and cooking oil among others.

The question almost every customer is asking is how much of foreign currency is required to produce beef products, bread, cooking oil and other products given that most of the input materials for these products are locally available. Cattle, wheat, soya beans, cotton seed and sunflower seed are abundantly available on the domestic market.

The Government did very well to examine the beef industry value chain and this should be extended to other critical sectors of the economy. Emphasis of such exercises should be placed on open book costing amongst the partners of the supply chain.

Open book costing throughout the supply chain helps to pinpoint the location of the major cost driver and other inherent inefficiencies that cause price increases. Open book costing can also expose opportunists within value chain that are deliberately seeking to make quick gains at the expense of the whole value chain.

It can be seen that the success of the Buy Zimbabwe and SI 64 is grounded on the discipline and willingness by local firms to start producing and abandoning profiteering tendencies. The current price increases are unsustainable and unjustifiable.

There is need for commitment from all stakeholders if economic stability is to be realised. Government initiatives such as SI 64 take the country one step forward, but unscrupulous tendencies by businesses take the country two steps backwards.

Zimbabwean businesses can change the fortunes of this economy. The importance of achieving sustainable capacity utilisation and employment creation can never be overemphasised. It is imperative that Zimbabweans as the major stakeholders of our economy have unity of purpose to grow the economy and rid ourselves of retrogressive tendencies that cripple the economy.

The writer is a supply chain management specialist with the Bindura University of Science Education.

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey