Zim firms to increase business with UN

ZIMBABWE companies have vowed to increase the volume of trade with the United Nations amid revelations that the country last year accounted for 0,28 percent of the US$29,6 billion trade with the body’s agencies.

This emerged at a seminar on doing business with the UN hosted by the country’s national trade development agency, ZimTrade in Harare yesterday.

The two-day seminar, which began yesterday, aims at equipping local companies with relevant information on doing business with the UN on a global scale.

The UN is an international organisation founded in 1945 and presently comprises 193 Member States

The UN and its work are guided by the purposes and principles contained in its founding charter.

In his presentation at the seminar, UN chief of global procurement support section Mr Balakrishnan Amirthalingam said his organisation procures goods and services from suppliers all over the world to support its activities and operations.

“In 2021, the UN procurement system recorded a total procurement volume of US$29,6 billion …Zimbabwean suppliers supplied the value of US$82,6 million and the percentage of supplies from Zimbabwe is 0,28 percent of the UN’s total global procurement system,” he said.

The goods were supplied to UN agencies such as the Food and Agriculture Organisation (FAO), United Nations International Children’s Emergency Fund (UNICEF), and United Nations Development Programme (UNDP).

To the UN Secretariat, Mr Amirthalingam said Zimbabwean suppliers last year supplied goods and services worth US$185 473.

Through its Secretariat and agencies, the UN procures various goods and services in sectors such as Information Communication Technology, air transport, building and construction, food and catering, transportation, real estate, security, professional services to facilitate the smooth running of its operations.

Last year, the UN sourced goods and services from suppliers in 223 different countries and territories, with growth across all geographical regions.

The increase was most pronounced in Latin America, the Caribbean, Europe, and Asia. Procurement from developing countries, countries in transition and least developed countries (LDCs) was worth US$18,4 billion or 62 percent of the total UN procurement for last year.

Procurement from LDCs has increased year-on-year since 2016, reaching US$4,5 billion in 2021, representing a US$416 million or 10,2 percent increase compared to 2020. In separate interviews, participants at the seminar said they would intensify efforts to improve Zimbabwe’s contribution to the UN procurement system to bolster international trade and bolster Zimbabwe’s foreign currency earnings.

“From our organisation, the next step now is to go to the website (UN) to do the registration and also that at least we have access to the opportunities that were highlighted. The next step now is to understand more from the website and register and start supplying if opportunities are there so that we boost trade at international level and foreign currency earnings,” said Yadis Plastics sales executive Ms Nomazulu Mpofu whose organisation supplies flexible plastic packaging material.

“We have not been supplying to the UN as a company because it’s something that we actually overlooked and also as they highlighted sometimes you fear from afar as they highlighted that you need to meet international standards, so sometimes you are too comfortable in supply the local market –we need to go a step further where we try also to reach the international standards.”

The UN procurement contracts are categorized into three categories starting with the basic level which requires a vendor to have the capacity to supply goods and services worth up to US$150 000 while Level 1 is a contract award up to US$500 000 and Level 2 is a contract award of US$500 000 and above.

Bonga Travel Agency director Mrs Tryphine Mapundu said they were excited to learn about the UN procurement systems and procedures with her organisation leveraging on the knowledge gained at the seminar to participate in global tenders.

“The next thing is definitely visiting the website and getting ourselves registered so that we can participate in the UN global procurement arena and boost trade and foreign currency.

“But going global is not something easy, especially for SMEs who are still growing taking into account that the UN needs business worth US$150 000 for you to just be the basic supplier. It requires a lot of money,” she said.

Warmbrands Investments director Mrs Sarah Dinha commended ZimTrade for organising such a seminar saying this will go a long way in improving Zimbabwean companies participating on a global scale.

“You heard from the statistics that we have been presented with, Zimbabwe’s contribution to the UN global procurement system is just worrisome at 0,28 percent of the organisation’s total business last year.

“It’s painful to hear of a US$4,2 billion business and we are only participating to the tune of US$185 000 to the UN Secretariat.

In terms of ZimTrade’s interaction with us, I applaud them and the Ministry of Foreign Affairs and International Trade, they are doing a great job and it’s up to us (the business community) to pick up on these opportunities,” she said.

ZimTrade export promotion manager Mrs Vuyiswa Mafu said the objective of the seminar was to equip local companies with relevant information on doing business with the UN.

“The objective of this seminar today is to equip you, the local companies in Zimbabwe, with the requisite skills that will enable you to do business with the United Nations for the supply of goods and services to the various UN institutions.

We all know the United Nations, it’s a very big organisation, it’s a multimillion-dollar business.

Once you get into it you know, you are good to go…so let’s take advantage of this seminar to learn as much as possible so that at the end of the day, we are able to supply this organisation.

“The seminar really aims to raise awareness of the market opportunities that exist within this institution and assist Zimbabwean companies to take advantage of them,” she said.-herald.c.zw