Benefits of Local Content Policies for Economic Growth in Zimbabwe
The presentation by the Consumer Council of Zimbabwe highlighted the importance of encouraging consumers to buy Zimbabwean products through local content policies. By promoting indigenisation and economic growth, these policies aim to reduce foreign dependency, create jobs, lower production costs, enhance competition, build resilience against global economic shocks, improve product quality, protect local industries, stabilize socio-political life, and bring in foreign currency for technological advancements and increased manufacturing output.
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Presentation Transcript
Presentation by the Consumer Council of Zimbabwe Executive Director Miss Rosemary Siyachitema at the 5thRetailers and Suppliers Conference 27 October 2017, Meikles Hotel
Local content policies The Local Content Policy will endeavour to encourage consumers to buy Zimbabwean products thus promoting indigenisation and economic growth. It should be noted however that it is the consumers that play a pivotal role in the buy local and therefore, their preferences and needs should be put at the forefront for the nation to enjoy the benefits of the campaign.
Continued: The consumer population of Zimbabwe is the constituency that needs to be persuaded to BuyZimbabwe and therefore, whatever we decide to do here has to have their buy in. It will not be enough to meet and talk here and not find a suitable way to cascade this to the rest of the population who are the target for buying Zimbabwean. We have to be clear what benefits will emanate from buying Zimbabwean people want to know what the tangible benefits will be for oneself, family, community and the country.
BENEFITS OF LOCAL CONTENT POLICIES Reduces foreign dependency Zimbabwe becomes self sustainable, self reliable and self sufficient. Job creation the more the demand of local products, the more the production which requires more labour. Low unit cost raw materials are readily available and production is done locally and transport costs are minimal leading to lower unit costs.
Continued: Competition on the local market buy local satisfies domestic demand, competitive prices and consumer choice of goods and services is broadened. Resilience in the face of global economic shock e.g. recessions and depressions, the buy local will reduce unemployment, improves the efficiency of all sectors and improves liquidity, promote the economy at al levels of production that is from primary, secondary and tertiary levels.
Continued: Reduces importation of poor quality goods Zimbabwean products will be manufactured in accordance with Zimbabwean standards, preferences, laws and regulations thus quality is less compromised. Protects local industries against foreign competition local businesses will secure a larger market share than foreign businesses.
Continued: Stabilises socio-political life buying local brings with it employment, improves standards of living, better access to resources thus reducing disgruntlement amongst citizens. Brings in foreign currency needed for importing new technologies and increases manufacturing output Promotes indigenisation motivates local investors to start businesses.
Consumer Expectations Rejuvenation of manufacturing industries resulting in increased productivity in both range, standard and quality on our shelves. Currently as per the CZI 2017 Manufacturing Survey Report productivity levels have dropped from 47.7% in 2016 to 45.1% in 2017 consumers want to see these figures increase by way of physically seeing more local products. Relook at priority industries that have to be resuscitated and adequately funded. Closely monitor cost pushers that might impede economic development i.e. fuel, electricity, water and roads . SME s to play an integral part in economic development
Continued: Relook at policies that need to be realigned with the Local content policies. No profiteering, two and three tier pricing on the Zimbabwean market. Better machinery for consultative education of the public so that they become part of the economic development of Zimbabwe. Once productivity increases, unit cost must fall
CONTINUED: Once manufacturing and productivity is buoyant employment figures must rise, thus more consumers have money in their pockets to spend and therefore: a. Consumers cost of living and quality of life should improve, b. Consumers will exercise their right of choice c. Zimbabwean exports should increase and be more competitive d. Zimbabwe earns more foreign currency to improve social and economic environment. e. More money will be circulating in the environment
THE END Thank you, Tatenda, Siyabonga For further information visit our Facebook page https://www.facebook.com/The-Consumer-Council-of- Zimbabwe-469903906389939/ Our Offices 35 Rhodesville Road, Eastlea Harare Tel: 496479 Telfax: 263 4 498441 E-mail: ccz2@mweb.co.zw
