Categories: Stories

Why Buy Zimbabwe drive is a hard-sell

If you have ever tried Charhon’s loose biscuits, you would know why the “Buy Zimbabwe” campaign is hard to swallow.

On the outside, the packaging is boring and plain. Inside, the biscuits are so rock hard they test your jaws’ resolve, while the taste is just about as bland as the packaging.

On the shop shelves, right next to them, are Romany Creams, Oreos, Bakers’ Ginger Nuts, De Vries Double Velvet and all levels of biscuit heaven, all dressed up in chic packaging.

Now, government’s restrictions on dozens of luxury imports provides a test for our industries; can they step into the gap left by banned foreign products?

Last Friday, the government announced restrictions on the import of dozens of foreign products, a broad list ranging from baked beans, fake hair, to salad cream. It is more likely that more bans are to follow, as Zimbabwe works overtime to narrow its trade deficit, which stands at $3.3 billion.

The government believes restricting imports will plug the flow of money out of the country, and also save local industries. However, the state of Zimbabwe’s industry raises questions on whether local industries are in any position to grab this chance and thrive.

On the shop floor, local goods are losing to foreign products. Local products are expensive and less attractive to consumers. This is because the factories that make local products are now old and expensive to run, producing goods that cost more than often better quality imported goods.

With limited access to the money they need to modernise their factories, it is hard to see how the restrictions will help local manufacturers.

According to the CZI, Zimbabwe needs $8 billion to replace old equipment in its factories.

At Olivine, some of the equipment used to make its popular brands was installed in 1947, two years after the end of World War II. The company is now spending $15 million for new equipment.

National Blankets uses equipment that was first installed in 1940, early into the second World War. The company makes woven blankets, which have long lost favour to consumers who now prefer “two-in-one” blankets.

Continued next page

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This post was last modified on June 20, 2016 5:25 pm

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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