In the thrust of responsible sourcing, Buy Zimbabwe, a local organisation promoting domestic production, is advancing the introduction of a Local Content Rating System aimed at ensuring that more of the revenue generated by the mining industry is retained within the country, Mining Zimbabwe can report.
By Ryan Chigoche
This was revealed by Buy Zimbabwe General Manager, Alois Burutsa, at the 28th edition of the ZITF Mining, Engineering and Transport Expo held recently in Bulawayo.
The push for a Local Content Rating System, first proposed in 2023, comes amid worrying statistics showing that out of the US$6 billion in revenue generated by the mining sector last year, US$2.7 billion was spent by mining companies on suppliers.
However, only about US$540 million of that amount was directed to local suppliers — roughly 20 per cent.
What is more concerning is that even within that US$540 million, a significant portion actually goes towards imports from South Africa and other countries, as many local suppliers rely heavily on foreign-manufactured products.
This means that Zimbabwean manufacturers are not benefiting as much as intended from mining procurement, undermining the goal of strengthening domestic value chains.
In light of this, Burutsa proposed the imminent introduction of the Local Content Rating System as part of the solution, alongside stronger policy interventions and increased collaboration between government and the private sector.
“I’m going to put a few proposals that will help us solve some of those problems. Local content rating. You see, I mentioned earlier that there’s US$540 million that went to local suppliers. But if you dig deeper, you may actually find that most of that US$540 million actually went outside again, because local suppliers go to the mines and say, ‘I’m a local supplier, and I’ll get the product.’ But guess what? Those products will come from across the border — South Africa to China — and they import those products. Therefore, we are not actually supporting our local manufacturers. So there’s a need for local content rating,” Burutsa said.
To operationalise the system, Buy Zimbabwe, which is the designated Local Content Rating agent in the country, plans to establish a Local Content Rating Portal to list certified products and guide local procurement across industries.
“Soon we plan to have a local content rating portal to list our products, and we’d like to work with the mining sector to say, whenever you’re doing your purchases, if you’re going to give an order to a local manufacturer, ask them if they have a local content rating certificate, so that you are sure that this product is indeed made in Zimbabwe.”
In the meantime, several major mining companies such as Zimplats, Mimosa, and Blanket Mine have taken steps to empower local suppliers through Local Enterprise Development programmes.
However, there are growing calls for more miners to adopt similar initiatives to ensure that a greater share of Zimbabwe’s mining revenue remains within the national economy. Policy support has also been identified as a key factor in making such initiatives sustainable.
Burutsa further emphasised the importance of responsible sourcing within the mining sector, explaining that the concept seeks to ensure that economic value from mining activities circulates within the local economy before flowing out of the country. He likened this to a “spiderweb” model, where the benefits of mining spread across domestic industries and communities.
However, it is important to acknowledge that the mining industry operates under global price constraints, meaning miners are essentially price takers who sell their commodities at prices determined by international markets.
This reality, Burutsa noted, makes it difficult for companies to prioritise local suppliers purely out of obligation, as he stressed that local procurement must be driven by competitiveness, with local manufacturers producing goods that are cost-effective, high quality, and efficient enough to meet the sector’s needs.
The proposed Local Content Rating System is seen as a practical step toward bridging the gap between miners and local manufacturers, creating a transparent framework that promotes responsible sourcing while enhancing domestic industrial capacity.
