Business leaders need to be innovative and utilize economic opportunities existing within the region to curve a post-Covid-19 recovery trajectory, Industry and Commerce Minister, Dr Sekai Nzenza has told top executives at the seventh edition of the CEO Roundtable annual meeting currently underway in the resort town of Victoria Falls.
The call comes at a time businesses are struggling to recover from the effects of the Covid-19 pandemic that has disrupted global and local supply chains.
At the same time, it coincides with the commencement of the African Continental Free Trade Area (ACFTA) that is set to create unfettered access of goods and services to a market of 1.6 billion people in the region.
“The fourth Industrial Revolution and the crisis presented by the COVID 19 pandemic, has created a business-operating environment that demands innovation which includes digitalization as a way to stay in business,” Dr Nzenza said.
Industry minister Sekai Nzenza
“Consumers are turning to online shopping to meet their needs, even those who had historically been reluctant to do so. This presents a challenge to businesses as they have to move with the current flow which is pointing towards digitalisation. I urge you CEOs to develop greater resilience and stay a leg up in terms of competition,” she added.
This year’s edition is running under the theme, ‘Recovery Curve, Building Momentum-Crashing Barriers, Creating Impact.’
Zimbabwean companies are currently battling high cost of production and shortage of foreign currency to import essential raw materials, a situation that has affected local companies’ competitiveness.
Antiquated machinery in industries remains one of the biggest challenges for local companies.
“Innovate, innovate. Seek innovation, seek partnerships with investors into Zimbabwe,” said Nzenza.
Capacity utilization in local manufacturing industry is however expected to reach 60 percent according to government projection as businesses gradually recover.
But the delays in settling foreign currency payments on the foreign currency auction market has slowed momentum in capacitating local businesses to procure machinery for efficient production to compete on the ACFTA.
This is despite repeated pledges by authorities to clear the backlog.
However, experts have commended local companies for showing resilience and innovation during the pandemic as seen by a number of companies diversifying from core business to stay afloat.
Companies such as clothing giant- Edgars Stores and funeral services provider, Doves Funeral for example, have diversified and opened up financial services business units.
