‘Digital laggards will lose big on export business’

LOCAL producers should take advantage of the existing digital gap on the continent to market their brands internationally using online platforms.

The country’s trade promotion and development agency, ZimTrade, said this, quickly pointing out that due to the outbreak of the Covid-19 pandemic, business models are completely changing hence adoption of virtual strategies is the new normal.

“Let us face it, the coronavirus has changed the way we do business for good. What this means is that businesses that are not quick to embrace the requirements of the current times will likely face challenges going forward,” said the agency.

“One of the major implications that Covid-19 has had on business is demystifying the notion that physical meetings are the cornerstone of establishing and concluding business deals.”

ZimTrade noted that the desire to have physical meetings had perhaps remained the order of the day for long time, due to the absence of a better problem-inspired solution.

“So, for local companies to remain relevant in the ‘new normal’, it is important that they establish a strong online presence as well as take advantage of existing virtual platforms.

“For some, the failure to adopt Information and Communication Technologies in their marketing strategies, has cost them a sizeable customer base,” said ZimTrade.

In the absence of physical engagements, ZimTrade said applications such as Microsoft teams, Zoom continue to gain popularity.

“For Zimbabwean business, there are opportunities for growth of local brands in the international markets as more businesses from across the continent are still largely ‘offline’, that is with limited access to online resources whilst those that utilise the Internet, it is mostly for social and not business gains,” said ZimTrade.

According to the International Trade Centre (ITC), e-commerce is being exploited across Africa and there is a healthy number of African-owned and operated marketplaces, but about 80 percent of all marketplaces operate only within national boundaries.

The ITC has noted that most of the home-grown platforms were either generalist business-to-consumer or consumer-to-consumer such as Jumia, Cars45, Konga, Takealot, and Gumtree.

Although the participation on online platforms is still low among businesses in Africa, ZimTrade said increased participation of Zimbabwean companies on the virtual platforms will improve their product visibility in international platforms, export earnings as well as contribute to national economic development.

“This active participation on online platforms will also contribute to the easy attainment of export targets set out in the Second Republic’s Vision 2030, whose thrust is that of creating sustainable export-led economy, riding on areas of competitiveness,” it said.

“To demonstrate the importance of online platforms to national economic development, Vision 2030 identifies that the inclusion of Information and Communication Technologies across all national development strategies is an enabling tool for development.”

At present, there are efforts to provide high quality services to citizens in an efficient and effective manner, as stipulated in the Vision 2030, which envisages that the country will have Internet m access at village level, through the extension of the fibre optic backbone, and last mile connectivity.

“This means that with full exposure to the global online community, Zimbabwean businesses, regardless of location will have an opportunity to link with international buyers,” said the agency.

Meanwhile, to improve the linkages between local companies, ZimTrade has developed an online platform called shop@zim for Zimbabwean producers to meet with global buyers.

The online store is premised on the need to create a singular online window for marketing and selling Zimbabwean products. Market scanners have revealed that many local producers lack the global presence that could catapult their business into financial success.

Potential exporters entering the international market on their own often face steep challenges of acceptance owing to, for example, lack of exposure and scepticism by established buyers.

“Thus, to assist companies in reaching more markets through online platforms and as a response to Covid-19, the online business platform will enhance engagements of local companies with international buyers as well as improve the visibility of locally produced products and services,” said the agency.-chronicezw