BUY ZIMBABWE CONFERENCE 30 MARCH 2011 - HICC GOING BEYOND WORDS PRESENTATION BY ROSEMARY SIYACHITEMA – CONSUMER COUNCIL OF ZIMBABWE REDUCES FOREIGN DEPENDENCY

Buy Zimbabwe Campaign The Buy Zimbabwe Campaign is an endeavour to encourage consumers to buy Zimbabwean products thus promoting indigenisation and economic growth. It should be noted however that it is the consumers that play a pivotal role in the buy Zimbabwe campaign and therefore, their preferences and needs should be put at the forefront for the nation to enjoy the benefits of the campaign.

BENEFITS OF BUY IN ZIMBABWE CAMPAIGN The consumer population of Zimbabwe is the constituency that needs to be persuaded to ‘Buy Zimbabwe’ and therefore, whatever we decide to do here has to have their buy in. It will not be enough to meet and talk here and not find a suitable way to cascade this to the rest of the population who are the target for buying Zimbabwean.

Continued We have to be clear what benefits will emanate from buying Zimbabwean – people want to know what the tangible benefits will be for oneself, family, community and the country.

REDUCES FOREIGN DEPENDENCY ZIMBABWE BECOMES SELF SUSTAINABLE, SELF RELIABLE AND SELF SUFFICIENT

JOB CREATION THE MORE THE DEMAND OF LOCAL PRODUCTS, THE MORE THE PRODUCTION, WHICH REQUIRES MORE LABOUR

RESILLIENCE IN THE FACE OF GLOBAL ECONOMIC SHOCK e.g.- RECESSIONS AND DEPRESSIONS THE BUY ZIMBABWE CAMPAIGN REDUCES UNEMPLOYMENT, IMPROVES THE EFFICIENCY OF ALL SECTORS AND IMPROVES LIQUIDITY THE BUY ZIMBABWE CAMPAIGN PROMOTES THE ECONOMY AT ALL LEVELS OF PRODUCTION THAT IS FROM PRIMARY, SECONDARY AND TERTIARY LEVELS

LOW UNIT COSTS RAW MATERIALS ARE READILY AVAILABLE AND PRODUCTION IS DONE LOCALLY AND TRANSPORT COSTS ARE MINIMAL LEADING TO LOWER UNIT COSTS

COMPETITION ON THE LOCAL MARKET THE BUY ZIMBABWE SATISFIES DOMESTIC DEMAND COMPETITIVE PRICES CONSUMER CHOICE OF GOODS AND SERVICES IS BROADENED

REDUCES IMPORTATION OF POOR QUALITY GOODS ZIMBABWEAN PRODUCTS WILL BE MANUFACTURED IN ACCORDANCE WITH ZIMBABWEAN STANDARDS, PREFERENCES, LAWS AND REGULATIONS THUS QUALITY IS LESS COMPROMISED

PROTECTS LOCAL INDUSTRIES AGAINST FOREIGN COMPETITION LOCAL BUSINESSES WILL SECURE A LARGER MARKET SHARE THAN FOREIGN BUSINESSES.

STABILISES SOCIO-POLITICAL LIFE BUYING ZIMBABWE BRINGS WITH IT EMPLOYEMENT, IMPROVES STANDARDS OF LIVING, BETTER ACCESS TO RESOURCES THUS REDUCING DISGRUNTALMENT AMONGST CITIZENS

BRINGS IN FOREIGN CURRENCY NEEDED FOR IMPORTING NEW TECHNOLOGIES INCREASES MANUFACTURING OUTPUT

PROMOTES INDIGENISATION MOTIVATES LOCAL INVESTORS TO START BUSINESSES

Random Consumer Survey by CCZ A small survey was conducted to investigate the consumers’ response to the Buy Zimbabwe campaign. The target population was randomly selected within Harare, those walking in and out of the banks and retail shops. The consumers responded to the following questions:

What do you consider when selecting the type of product you want to buy?

What do you think are the shortcomings of locally manufactured goods? The majority of the target population noted the following shortcomings: They are not affordable They are priced exorbitantly They are poorly packed The supply of local goods do not meet local demand

State reasons why you might prefer foreign products compared to local products?

Should local goods and services be preferred simply because they are local? 60% said cited the following reasons: The products should meet regional standards They should be of good quality They need to be sold at an affordable price The products need to be readily available and provide a wide range of choices since consumers have the right to choose 40% said yes, noting that buying locally produced goods will promote local industries

If local products are priced the same as foreign what would you prefer? 90% would prefer Zimbabwean products because: Zimbabwean products are not G.M.Os Perishable goods will be fresher because there is less transportation passage.

Continued These products are manufactured in accordance with Zimbabwean standards, preferences, laws and regulations. The 10% noted that they would consider Zimbabwean products only if the pricing, quality and durability is fair.

If buy in Zimbabwe campaign was to be launched would you support it? All the respondents said they would support the buy in Zimbabwean campaign

What strategies do you suggest must be adopted by local markets to compete with global brands? Consumers urged local manufacturers to: Improve the quality of their products Advertise their products Price their goods in proportion to production costs. Consumers in emphasising this point asked why the Zimbabwean products are more expensive than foreign products yet there are minimal transport costs.

Continued Price their goods taking into consideration the general populace’s salaries. Employ skilled personnel to ensure effective and efficient production. Acquire suitable equipment to ensure mass production which meets the local demand and also reduces unit cost.

LEARNING FROM OTHERS The ‘Proudly South African’ campaign has been a successful ‘Buy South African’ campaign we can learn from. It has elements which are fundamental and which we cannot ignore:- A partnership between government, organized business, labour and community organizations. Meant to boost job creation and pride in local companies and their products and services.

Continued 3. Buying South African resulted in increased demand for locally produced products and services. 4. Thus safeguarding existing employment opportunities, economic growth (capacity utilization). 5. Consumers assurance of quality and standards of products with ‘Proudly South African ‘ mark.

Continued 6. Commitment to better business ethics and corporate social responsibility. 7. Fair and competitive pricing of goods All this was underpinned by a massive consumer education program and periodic surveys to measure attitudes, awareness and purchase behavior. Their logo played an important, focal point – very visible with many other spin off activities.

THANK YOU !!!! TINOTENDA !!!! SIYABONGA!!!! THE END THANK YOU !!!! TINOTENDA !!!! SIYABONGA!!!!