Economists amplify calls for domesticating value chains

By Davison Vandira

ECONOMISTS have called on
the strengthening of the local content policy to mitigate the effects of Zimbabwe’s vulnerability to external shocks.

Calls to domesticate industrial value chains, especially in the agriculture sector come in the wake of the economy’s vulnerability to foreign shocks with disruptions to supply chains a common occurrence in the past few years.

Economists are convinced that Zimbabwe will reap huge economic benefits by localising its value chains to stimulate downstream and upstream economic activities through strengthening import substitution strategies.

“We have been preaching the gospel of import substitution over the past years and the time to act is now such that we reduce the economy’s vulnerability to external shocks and that we avoid and minimise the burden we carry from this exogenous factor,” said Professor Gift Mugano, an Economic Analyst.

“As a country we made significant progress on import substitution when global supply chains were affected by the Covid-19 and we now need to solidify these gains through implementing a robust local content policy where almost everything should be of Zimbabwean origin from raw materials, packaging up to the final product,” said Titus Mukove, a Development Economist.

The domestication of industrial and agricultural value chains is also expected to minimise disruptions to Zimbabwe’s march towards attaining vision 2030.