The Herald
Michael Tome–Business Reporter
A TOTAL of 41 companies, among them the country’s largest media group, Zimpapers, were awarded for championing the local procurement agenda at the Buy Zimbabwe public procurement conference and awards held in Harare yesterday.
The awards sought to recognise firms that are leading in the procurement of local goods and services in the country.
Zimpapers the country’s biggest and only listed diversified media company was among the scores of firms recognised at the event for their roles in promoting local procurement and contributing to the import substitution drive as enunciated by the Government’s vision.
The Buy Zimbabwe campaign is an initiative designed to complement the Government’s efforts to promote growth and competitiveness of local industry to reduce the import bill, particularly on goods that can be acquired locally.
Local procurement has been on the increase in recent years driven mainly by dam and road construction projects, which were awarded to local companies.
In an interview, Zimpapers Group chief finance officer Mr Farai Matanhire said the company’s model has always been focused on promoting import substitution in the group’s procurement process.
“We look at promoting local firms before we look at imports because we understand the need for import substitution, therefore we always look if there are opportunities to procure locally and if prices make sense, that will be the preferred option because there are also challenges associated with getting foreign currency for you to be able to import, “ said Mr Matanhire.
Buy Zimbabwe chairperson Munyaradzi Hwengwere said the Government, as the biggest spender in the country, should continue its local procurement drive to enhance the growth of the domestic industry.
“Government came up with local content policy and said we should work together with the private sector to say how can we better our procurement, today, we have mining sector growth target of US$12 billion by 2023, agriculture (growth target of ) US$8,2 billion, (manufacturing) industry (target of) US$8 billion; these are sectors critical for substituting imports and this is where public procurement must be directed,” said Mr Hwengwere.
He added that the Government had a commanding share of expenditure of about 68 percent, and the government should use the public purse to deepen value chains and promote public procurement.
He pleaded with the Government to channel at least 20 percent of its budget towards local procurement to stimulate growth of local industries.
Speaking at the event President Mnangagwa noted that due diligence and meticulous administration of tenders across Government ministries, departments, agencies, public entities and state-owned enterprises must remain key components of public procurement.
“Under the Second Republic, deserving, capable and competent service providers with demonstrable local content should be awarded tenders and contracts,” he said.
