Govt urged to do more to promote local procurement

Buy Zimbabwe, a local advocacy group promoting locally produced goods and services, has urged the Government to implement a strategic public procurement policy that favours locally manufactured goods in order to improve capacity and competitiveness.

General manager Mr Alois Burutsa, during the launch of the Confederation of Zimbabwe Industries (CZI)’s 2024 Manufacturing Sector Survey, said the Government, as the economy’s biggest spender, should lead by example through procuring locally produced goods.

“Local goods now account for about 70 percent of products being sold in supermarkets; however, we would like to implore the Government to look at other sub-sectors like bus manufacturing where there is idle capacity,” he said.

Mr Burutsa said a locally focused procurement policy would significantly reduce reliance on foreign imports by the Government and, as a result, empower domestic industries.

According to the CZI manufacturing sector survey report for 2024, capacity utilisation fell by 0.9 percentage points to 52.3 percent in 2024, compared with 53.2 percent in 2023.

CZI believes the current capacity means there is excess capacity that is not being utilised, representing a missed economic opportunity.

Mr Burutsa said the manufacturing sector has been resilient, and the growth of small to medium enterprises’ contribution to manufacturing should be supported by increased local procurement through the central government, which is the biggest spender in the economy.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube recently said the Government would implement measures to prioritise local suppliers of goods and services for procurement by government ministries and agencies, in line with existing laws and regulations.

He said this would support the upcoming Zimbabwe Industrial Reconstruction and Growth Plan and the local content policy.

Ministry of Industry and Commerce secretary Dr Thomas Utete Ushe said the Government has a public obligation to support the private sector when it is ready.

“Government is implementing strategies to enhance local content, and this will be done gradually, with the private sector building capacity. For instance, should we say we require about 30 buses from local manufacturers, they do not have that capacity; they will take at least five years to supply when we need them now,” he said.

He noted that Government and the private sector should coexist as partners and drive the re-industrialisation and development of new industries, which is key for the attainment of Vision 2030.

“We are calling upon the private sector to bring forward their input for the reconstruction plan which will culminate in the development of the National Development Strategy (NDS2),” said Dr Ushe.

The Government is implementing the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP), which was introduced in October 2024 and will run until December 2025.

This transitional plan includes key interventions across manufacturing sectors aimed at revitalising production capabilities, enhancing efficiency and improving capacity utilisation.

The plan focuses on critical areas aimed at boosting local production, attracting foreign investment, and enhancing infrastructure, among others.

The Government also established a local content steering committee to oversee the development and implementation of measures to boost local production.-herald