December 2010 | Nick Martindale
The president of Zimbabwe’s Chamber of Mines, Victor Gapare, has called on its
members to buy products and services from local companies.
In an interview with SM, Gapare said
such a policy could develop the country’s economy and lead to lower prices for
both buyers and suppliers.
local procurement is important for economic growth and the creation of jobs and
employment,” he said. “But it makes commercial sense to source locally because
this reduces the lead time required when sourcing goods.
will not have to keep three or six months‚ stock in his stores if he knows the
local supplier can supply within a shorter time period, therefore reducing
working capital tied up in stores and spares.
suppliers improve their efficiencies and quality, costs are bound to come down,”
The Chamber of Mines estimates that expenditure on local procurement will
increase from US$150 million (£97 million) in 2009 to US$300 million
(£193 million) in 2010, as the local economy begins to grow.
also encouraging mining companies to work with local suppliers and help them
achieve the quality and cost competitiveness required,” said Gapare. “This used
to happen in the days before the collapse of the local supply industry so it is
not a new issue.”
Rumumba, purchasing manager at Hwange Colliery Company, said that around 90
per cent of his company’s products and services were already sourced
locally. “The other 10 per cent consists of specialised mining machinery and
spares with no local distributors,” he said. “We also import when the
landed price of imports is cheaper, especially when the difference is
Local suppliers could also perform better than more established companies,
which tended to be more rigid and have less understanding of customer
requirements, he added.
Nyasha Chizu, CIPS Zimbabwe branch chair, said a long-term solution would be to
encourage equipment manufacturers from overseas to invest in facilities within
technology is imported and local products from mining are used in these plants,
prices for equipment will inevitably reduce,” he said.