HARARE: Government has warned that the retail supply chain will remain weak unless consumption patterns shift towards local products and services.
Industry and Commerce deputy minister Chiratidzo Mabuwa yesterday told stakeholders attending the third edition of the Buy Zimbabwe Supply Chain conference that the retail supply chain was the basis of industrialisation and must be given priority.
“Unless we shift our consumption patterns towards local products and services, the retail supply chain, which is the basis for industrialisation will remain weak,” Mabuwa said in a speech read on her behalf by a ministry official.
“This, therefore, calls for the need to incessantly promote consumption of local products.” This comes as statistics show that national aggregate demand is highly skewing towards foreign products threatening the survival of local companies.
To resuscitate the manufacturing industry, government has set up a short-term regulated import system through licencing which will limit the importation of goods for which there is adequate production capacity.
Government has also removed some products which are locally manufactured from the Open General Import Licence to create demand for locally produced products.
Mabuwa said the thrust of the move was not to discourage international trade per se, “but is aimed at levelling the playing field by ensuring that we balance the local brands with imported brands”. Imports have been on the rise reaching $3,06 billion in the six months to June from $2,99 billion in the same period last year. “This continuous trade deficit therefore is quite detrimental to any government policy of reviving the local industry and employment creation,” Mabuwa said.
“Today’s challenges facing our local industry are synonymous with the macro challenges facing the economy as a whole and this has compromised the competitiveness of our own locally manufactured products.”
The ministry says the number of products has been reduced to 6 000 from 9 000 due to the impact of imported products. Some of the importers who are also adding to the bill are owners of shelf companies that obtain necessary licencing to import the products and distribute them to the public.
“The local supply chain can only stand if the system is systematic and this is only achievable when our retailer, at the top of the chain, is faithful and does nor divert his/her procurement actions in favour of imports over suppliers,” Mabuwa said. The system is expected to be an interim measure of controlling imports.
