Why Not, Zimbabwe?
According to the recent Indigenisation Act, a new statute will now be in effect that will require a 50% local procurement clause for all Zimbabwean companies. In other words, if you're a business in Zimbabwe, 50% of your goods and services must be acquired from local, Zimbabwean companies.
But wait, you ask, what if a company doesn't exist that sells my good or service? Exactly. Big Zimbabwean corporations are having to pay fees because they can't fulfill this requirement.
Some may view this as a major issue and a downside, we see this is a wide open playing field that has gotten juicier than a ripe mango. Can't find the product you need? Create a company that sources it. Need a particular service, but no one offers it? Start a company and offer it.
This single clause is gasoline on the startup movement in Zimbabwe. As startups continue to rise in the nation and education, resources, and support are built up to support these infant entrepreneurs and their ideas, this clause is going to create massive value to new companies.
This may be an uncommon perspective, but the alternative gets us nowhere. The time to invest in new ideas, start new companies, and build Zimbabwe is now.
50% local procurement clause? That's 50% market share up for grabs on a silver platter. Who wants it?
(photo via niklas groop)
Postscript: This is a supply chain indigenisation policy to be imposed on everyone. There is an emphasis on supporting youth in general, but not by law. This policy is being passed in Parliament and will be law soon. It's already included in the Indigenisation Act, but the supply chain portion must be passed by Parliament to ensure all stakeholders endorse and comply with it.
Posted on May 30, 2013
by Tim & Tommy filed under