Calls to domesticate mining supplies grow louder
Sikhulekelani Moyo, [email protected]
GOVERNMENT has stressed the need to avail more funding to capacitate local companies to meet supply needs for the mining sector as part of the local content strategy, revitalising domestic value chains and trimming imports.
Speaking at the Mining Industry Supply Forum in Bulawayo on Wednesday, Mines and Mining Development Ministry’s Permanent Secretary, Mr Pfungwa Kunaka, also challenged local content producers to be innovative to improve competitiveness levels.
“What we have seen is an issue where we need capacitation, innovation, and funding because, for the initiative to take root, we need the players to be capacitated and respond to the needs of the industry, which moves along with the global village,” said Mr Kunaka.
“From the National Development Strategy 1, we are emphasising value chains, especially in the mining sector and when we look at value chains, they also link to what happens in the manufacturing sector and the rest of the industry.
“What we are looking at here is that the industry needs goods and services, and we say these should come from locals. We want to ensure that the capacity is built so that these people play their part in the value chains.”
The forum was organised by the Chamber of Mines of Zimbabwe in partnership with CBZ and Fidelity Gold Refineries under the theme: “Maximising Contribution of the Mining Industry Through Local Content.”
Mr Kunaka said the mining sector has a weakness of relying on imports for its major supplies hence the need to address the issue by improving the domestic capacity of local companies to be able to substitute imports.
“There has been a lot of debate in terms of what other miners are doing, they are found to be relying on importation from their countries of origin,” he said.
“That issue has to be addressed somehow, we can only address this by a systematic approach where we build capacity locally. We also need to collaborate where we discuss these issues.”
The Permanent Secretary said among the major issues to be dealt with are production efficiencies, quality of product, accuracy, price competitiveness, and consistency.
He also pledged Government commitment to creating a conducive environment that promotes investment and allows businesses to thrive.
Speaking at the same occasion, Industry and Commerce Ministry Permanent Secretary, Dr Thomas Utete Wushe, said boosting domestic supplies was in line with the Local Content Strategy (LCS) that was approved in June 2019 to promote the utilisation of domestic resources as inputs along different value chains.
“The Local Content Strategy is attached to the vision of becoming a highly industrialised economy,” said Dr Utete Wushe. “The Local Content Strategy aims to create an ecosystem within the industries.”
Zimbabwe has been recording a positive growth trajectory in the mining sector in response to supportive policy interventions. Chamber of Mines chief executive officer, Dr Isaac Kwesu, said the state of mining survey reveals out of about US$5,4 billion in revenue generated by the mining sector, about US$2,1 billion is spent on suppliers of inputs and other related services.
“The sector receives inputs from various sub-sectors, and 15 percent comes from local manufacturing,” said Mr Kwesu. — @Sikhulekelani Moyo
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