The Sunday Mail
Talking Success
Sifelani Jabangwe
Last week’s instalment explained how the Local Content Policy was adopted earlier this year within the context of the broader Zimbabwe National Industrial Development Policy (2019 to 2023).
The importance of local consumption in stimulating economic development through its multiplier effect and linkages.
Quite clearly, promoting local consumption, especially of locally produced goods, helps support industries and create decent jobs.
Thus, it can be seen that our consumption has power and can be leveraged for the good of the economy and, thus, ourselves.
The big questions become: how much more can we achieve with our current consumption patterns? How much are we losing through importing goods that we could ordinarily produce for ourselves?
What would be the impact if we consumed locally produced goods?
Answering these questions and disaggregating the US$6 billion to US$8 billion spent on imports and channelling it to local enterprises, could dramatically impact our economy positively.
We need to start by identifying products with long supply chains or those with many linkages, as these have greater impact on economies.
Linkages which share greater value are also desirable as they pay better income.
We really need to make maximum use of our capabilities and strengths.
As the saying goes, we could be “beggars on a beach of gold”, or as the local saying goes, we could be “dying of thirst while standing in water”.
Those with the power to influence procurement decisions need to think and act for the greater good.
We really have to use what we have to change our circumstances.
In other words, any bad situation requires us to start changing it by using what we have.
As Zimbabwe, we are not starting from scratch. To start with, we are using between US$6 billion and US$8 billion for imports.
Directing part of this expenditure to local companies could have as much impact as a billion dollars of foreign direct investment (FDI).
Some of this national consumption is by local-based firms that are supplying products locally, but using foreign supply lines – for example foreign linkages.
These need to be incentivised to use local suppliers and, thus, create jobs locally.
This could be oil expressers who are importing crude oil for processing.
Shared vision
However, for the successful implementation of the Local Content Policy, it is imperative to have a shared vision of its benefits, particularly by leadership from all sectors.
A shared vision to improve our economy will help all stakeholders to unleash local content as a tool to change our circumstances.
Procurement decisions by those in positions of authority can change the circumstances for the millions of unemployed people in Zimbabwe.
It is probably the best form of contribution to sustainable business practises.
It surpasses philanthropic CSR (corporate social responsibility) as it creates local inclusive value chains, allowing more people to participate in the value chain without altering the business model of the enterprise.
Some of the targeted sectors with high consumption are public procurement, mining procurement, industrial procurement, health procurement, hospitality industry procurement, builders’ hardware procurement in construction projects, agricultural procurement, etcetera.
There are hard and soft frameworks for implementing local content.
For public expenditure, hard frameworks will be used as Government must support its own strategy.
Then soft frameworks will be used for other sectors in implementing local content.
Statutory Instrument 122 was a tool for implementing local content.
Some legal frameworks are covered in the Procurement Regulatory Authority of Zimbabwe (PRAZ) procedures and in the Mining and Minerals Act.
Zimbabwe has the necessary skills to produce. It also has the capacity to learn to produce the required goods. All that is required is the opportunity to supply, including programmes to develop suppliers.
Technology transfer can be achieved through working with different partners.
The Local Content Strategy helps Zimbabwe to work towards achieving Sustainable Development Goals (SDGs) 8 , 9 and 10.
SDG8 targets good jobs and economic growth while SDG9 is angling for innovation and infrastructure. SDG 10 is meant to reduce inequalities.
The Buy Zimbabwe campaign is a private sector-led programme to promote local content, and it will be partnering other stakeholders in implementing Government’s Local Content Strategy in order to achieve a common objective – growing Zimbabwe’s economy.
In order to assess the impact of the programme, local content ratings will be carried out by independent rating agencies to give objective verification of the level of utilisation of local factors of production by the targeted sectors.
We can also unpack tools for use in selection of targeted sectors, of which public sector procurement and mining procurement are certainly part of the list of high consuming sectors.
Also, implementation strategies covering supplier development can be unpacked, but that is a story for another day.
Sifelani Jabangwe is the immediate-past president of the Confederation of Zimbabwe Industries. He is the current chair of the Local Content Committee.
