‘ZITF should attract big corporates’

Business
The Zimbabwe International Trade Fair (ZITF) should attract big international corporates from Europe and other markets to stop it from sliding into a big flea market, analysts have said.

The Zimbabwe International Trade Fair (ZITF) should attract big international corporates from Europe and other markets to stop it from sliding into a big flea market, analysts have said.

BY MTHANDAZO NYONI

The 57th edition of ZITF runs from April 26-30 in Bulawayo under the theme, Innovate, Integrate and Industrialise.

This year’s edition comes on the backdrop of a decline in the number of local exhibitors, who constitute 28% of the total. Exhibitors, from Harare constitute 63% of the confirmed local exhibitors, with 9% being shared by other cities.

Economic analyst Reginald Shoko said organisers should work hard to attract big corporations from Europe and other markets.

“We have had to do with China and other limited foreign exhibitors, which has a serious effect on the business generated from the ZITF by local companies. If it [ZITF] continues on this trend, it shall lose its value of usefulness to the local companies as it slides into a big flea market,” he said.

Shoko said ZITF should be able to breathe life into the comatose economy and set Zimbabwe back on the growth path.

“ZITF gives local companies the opportunity to gauge their products with international brands that would be showcased during the fair. It is also a platform for exchange of ideas and in particular, the modernisation of manufacturing equipment,” Shoko said.

He said the decline in the number of participating Bulawayo companies was an indication of the economic trend in what was once the industrial hub of Zimbabwe.

Many large companies that formed the backbone of the city’s industry have either closed shop, liquidated or have been placed under judiciary management.

These include Merlin, David Whitehead Limited, Textile Mills, Belmore Manufacturers and Ascot Clothing. National Blankets and Security Mills are under judicial management while Cold Storage Company, National Railways of Zimbabwe, United Refineries, Dunlop Zimbabwe and Archer Clothing have down-sized, leaving thousands jobless.

South Africa’s Department of Trade and Industry will this year bring in 35 companies, an increase from the 24 that participated last year.

On the sidelines of the ZITF, there will be an international business conference — organised in conjunction with the National Economic Consultative Forum — a conference that will see policy makers engage with business leaders on how to leverage innovation and industrialisation for integration into the global economy.

There will also be a manufacturers’ breakfast meeting aimed at bringing in together all the players that are necessary to make re-industrialisation a reality.

Economic and policy analyst Butler Tambo said for Bulawayo, ZITF brought brisk business in terms of hotel accommodation and tourism opportunities as there would be foreign dignitaries.

“For a city where there is massive unemployment because of deindustrialisation, ZITF is a breath of fresh air even for the SMEs [small-to-medium enterprises]and there is heavy traffic of people in the city and brisk business for many a trader,” he said.

Tambo said the trade fair should be looked at holistically as it was also a mirror image of the overall performance of the economy.

“If there is a litany of mostly flea market traders at the fair, it shows the high levels of informal business that now characterises Zimbabwe. It should be seen as an opportunity for government and Zimbabwe Revenue Authority [Zimra] to try to put their house in order by making it easier for small businesses to be registered and formalised and to give adequate information and showcase why formalisation is important,” he said.

He said this should be used as a platform for Zimra to not only tap into the informal channels of trade tax, but for them to hear the concerns of SMEs. It is an opportunity for the tax collector to make it easier for SMEs to pay tax and also give them ample information on the benefits of doing so, instead of threatening them with garnishing accounts or slapping them with heavy penalties for non-compliance.

Zimbabwe National Chamber of Commerce first vice-chairperson, Sisa Sibanda said ZITF offered Bulawayo companies an opportunity to unlock the potential for SMEs, create synergies and investment linkages which ought to drive the economy.

However, Confederation of Zimbabwe Industries (CZI) president Busisa Moyo said ZITF relevance as a commercial affair had waned over the last few years. This, he said, was because industry and business were struggling and public sector organisations filled the vacuum.

Moyo said this year CZI had worked closely with ZITF to address issues facing business, for example re-tooling.

“We have invited original equipment manufacturers in line with our re-industrialisation agenda. While we may not have a large contingent this year but we trust that this will gain momentum. We intend to also address issues such as working capital, regional and global value chains in future so that we are relevant to commerce,” he said.

“Once there are topics that business finds relevant, we will attract the right exhibitors and traffic that makes ZITF a truly commercial affair.”

ZITF general manager Nomathemba Ndlovu said hotels in the city were over-charging exhibitors and this affected attendances.

“The tendency of local service providers [such as stand designers, transport providers as well as hotels and lodges in particular] to charge exorbitant rates is what causes the total exhibition budget to shoot up,” she said.

Countries that have national stands this year include Botswana, Ethiopia, Ghana, Indonesia, Japan, Kenya, Namibia, Malawi, Mozambique, Russia, South Africa, Tanzania and Zambia, while Canada, China, Cyprus, India and Germany would be represented by individual companies.

ZITF board chairman, Bekithemba Nkomo said Ghana and Russia were among countries exhibiting at the ZITF after a lengthy absence.

He said business delegations from the Ghana Investment Promotion Centre and Tatarstan Export Corporation of Russia were also expected to participate.

“To date, close to 43 000 square metres [which converts to 90% of available exhibition space] has been sold,” Nkomo said.

He said 361 exhibitors from 20 countries had confirmed participation.