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Zimbabwe: Foreign Expos Good for Country
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 Published by the government of Zimbabwe |
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The Herald (Harare)
7 August 2008
Posted to the web 7 August 2008
Harare
THE case for local companies exhibiting their products and services at foreign trade fairs and related platforms has been given credence by the performance of Zimbabwean firms at the Zambia Agriculture and Commercial Show that ended on Monday.
The entities involved in textiles, processed foods and beverages, wood and furniture, building and construction, mining and agric-hardware clinched several deals.
The sum total of the deals is still being computed.
Value-added products have been touted as the way forward for local manufacturers.
Zimbabwe's Ambassador to Zambia Mr Lovemore Mazemo was on target when he said "through value-addition we are not exporting our jobs, but at the same time we get higher value for our products."
The envoy also said exposure to international markets by the physical presence of companies during fairs is a step in the right direction, which takes Zimbabwean products to the doorsteps of potential foreign suitors.
It was interesting to see Zimbabwe Copper Industries exhibiting copper tubing, which Industrial Development Corporation's group export development executive Mr Brian Mushohwe likened to "selling ice to an Eskimo".
Zambia exports raw copper to South Africa, but Mushohwe says Zimbabwe can be used as a processing point.
"We have shown them that we have the resources and capacity for not only value addition but tolling as well," he said.
ZCI was exhibiting rolled copper (tubing) processed locally. Chemplex, Olivine, Zim Copper, Zimglass and Haast, as subsidiaries in their own right represented IDC at the show.
Toll manufacturing is a route that can be used to circumvent the challenges of sourcing raw material.
Foreign currency constraints have been blamed for low capacity utilisation. In the event of teaming up with foreign entities with own resources, these costs are watered down and firms can penetrate foreign markets cheap.
Increased exports translate to increased foreign currency inflows. It must be emphasised that though goods are sold during exhibitions, it should be a continuous process that requires follow up and ethical business conduct.
On the part of the central bank there is need to revisit forex retention thresholds on the back of positive performance of exporting companies, an independent financial analyst indicated to the Herald Business.
Off shore operations are a case in point, Davipel a local food-packaging firm has received a 5-year tax waiver, as Zambia seeks to attract more foreign capital. However, the current economic climate in Zimbabwe does not seem to promote the idea of exhibiting products in another country. The foreign currency requirements, envisaged red tape in the host country and a plethora of other potential setbacks are daunting.
However export trades oriented concern ZimTrade and like-minded institutions are the key.
Zimtrade chief executive Mr Herbert Chakanyuka said that ZimTrade has a sector approach to increase exports through capacity building, market information, and matchmaking, supply services, trade-fair and exhibition participation.
Companies exhibiting in Zambia were given up to date information pertaining to the Zambian economy, match making with potential partners was done in advance and the necessary travel arrangements right down to details of accommodations and other country specifics were laid out before the firms' representatives departed.
The issue of what to display in terms of product is another consideration. It is expected that one would showcase a particular line of goods and services.
However, in the global village exhibitors apart from showing their wares actually become diplomats albeit for a few days. In this vein continued representation on various business platforms and international trade shows puts Zimbabwe in the spotlight in a positive manner.
Zimbabwe has been recommended and commended for its infrastructure, skilled labour, which in turn needs to be complemented by capacity utilisation and retention of labour.
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ID Holdings marketing assistant Ms Christina Simbabure says such shows should take into account Small-to-medium enterprises that are trying to find their feet. ID Holdings is a food processing company aimed at developing small entrepreneurs and small retail outlets at the lower end of the market.
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