Zimbabwe: Penetrate Zambian Market, Zim Firms Urged

Source from:  The Herald (Harare) 1 August 2008 08/04/2008

ZIMBABWEAN companies in the engineering sector have been urged to take advantage of the economic boom in Zambia to penetrate the market. Clarson and Co Engineering marketing manager Mr Bigini Mudzamiri said hopes were high for Zimbabwean companies penetrating the region and establishing centres of operation abroad. Despite the myriad of challenges currently affecting Zimbabwe by companies were urged to focus on the strategic areas of mining, construction and agriculture in Zambia. "We are exploring opportunities for engineering products. Water and sewerage reticulation companies are our main target because of the abundance of construction and potential construction projects here," he said. For mining and agriculture, he said his firm sees great opportunities for exports especially for extruders and agricultural implements. He also noted the potential for toll manufacturing saying it is a cheaper way of penetrating the market as goods would enter the market competitively, cutting down on operational costs. Currently operating at below 50 percent capacity, Mr Mudzamiri cited sourcing foundry coke and gas (CO2) as the major setbacks to production at Clarson and Co. Clarson is exhibiting agricultural implements, grinding media and extruders and milling spares. Irrigation equipment manufacturer and service provider Dore and Pitt through marketing manager Mr Peter Ndoro said prices would be a major factor as Zimbabwean firms seek to make an impact. "Establishing operations here is difficult if you don't sustain them and pricing will be the key determinant to offset competition". He pointed out that Zimbabwean service delivery has made significant impact by way of its experienced engineers, "which has given us a competitive edge regionally". Though Zambia's economy is surging, it has shown very little growth in the engineering sector, whose major players are South African, Indian and Chinese firms. Dore and Pitt is a subsidiary of CFI Holdings. Pinnacle subsidiary, Jetmasters involved in the manufacture of built-in fire places, tobacco curing equipment, foundry and mining equipment is also upbeat about the business potential. "Operations in Zambia will depend on market reaction, costs and management aspects," said technical sales and marketing manager Mr Farai Matina. Enditem