Local retailers have been flooded by cheap imported goods which are often of inferior quality to locally made ones.
In an interview with The Zimbabwean economic analyst John Robertson said there were immense advantages to be realised if companies made that shift.
“The importance of sourcing products locally is that in doing that we create jobs for our own people. Every time we import we are creating jobs elsewhere and increase gross domestic growth in those country.
“When we but local we also create money for government in the form of taxes to fix the economy, infrastructure, health and education,” Robertson said.
He said for Zimbabwe the most important result would be job creation.
Local furniture retailer Pelhams in its financials released recently said instead of focusing on cheap imported products it was now increasingly focusing on locally produced and appropriately priced goods of high quality.
The Zimbabwean recently revealed that the Chinese funded the purchase of one million sets of party regalia composed of T-shirts, caps and other clothing items for Zanu (PF).
The regalia was transported to Zimbabwe on a cargo carrier, believed to have come from China, according to sources.
An economist in Harare told the Zimbabwe that procuring things locally led to industrial and manufacturing growth.
He said this would result in import substitution by stimulating local production leading to value addition.
“There will be pressure on industry to produce finished products rather than just raw materials,” he said.
The economist said producing locally would mean savings on foreign currency which would then be used for other important social services in the country.
“Every country wants to be a net exporter and not net importer. That means economic growth. That means the current account will go into surplus rather than deficit,” he said.
Post published in: Business