HARARE, Jul 3 (NewsDay Live) - The surge in the number of foreign-owned grain milling enterprises, especially those run by Pakistani nationals, is pushing local millers particularly those in the southern region out of business, the Grain Millers Association of Zimbabwe (GMAZ) has noted.
Speaking at a regional stakeholder meeting held Thursday in Bulawayo, GMAZ southern region vice-chair Mthokozisi Sibanda expressed concern over the influx of foreign competitors entering the market with cheaper machinery and offering products at prices local millers struggle to match.
“The challenge that we have got is about foreigners, that's our challenge," Sibanda said.
"They are coming in with cheap equipment and cheap products. Their prices are very low.
"Even if we try and go as low as possible, they always go lower than us, in the process they push our millers out of business as consumers will go for the cheaper one.
"On the other hand, it's unfortunate that we can't lower our prices to the extent of eating our production costs."
He revealed that more than 20 small-scale millers in the southern region, who once showed promising growth, are now finding it to stay afloat because of the stiff competition posed by foreign operators.
“We started off well in the past few years until we saw the influx of these foreign-owned millers," Sibanda said.
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"Now the production is low, the sales are low, it's not looking good for many of our colleagues.
"We are literally being pushed out of business.
“In the southern region, we have about four foreign-owned millers mostly by the Pakistanis.
"They might be few but they are big.
"It's a cause for concern on our side as millers.”
Sibanda called on the government to introduce policies to protect the grain milling industry from foreign dominance.
“At one time the government spoke about indigenisation and having milling as a reserved sector, but I am not sure how far they have gone," he added.
"I think it's high time we need to push more on that issue of having the milling sector exclusively reserved for locals because we now have got so many foreigners coming in, opening their milling companies.
