To instill confidence in the Buy-Zimbabwe Culture

By Bernard Bwoni

“Meanwhile, the government has noted with concern that Zimbabwe is slowly becoming a market for other countries with very little export in return. Efforts are underway to arrest the trend and revive domestic industry”. This was said by Vice President Emmerson Mnangagwa whilst addressing delegates at the International Business Conference recently. What he said is exactly what is wrong with Zimbabwe’s economy and many other African economies which are incessantly being choked by cheap imports from much larger economies which benefit from economies of scale. It is a genuine hope that this is not mere talk and that there are measures that are being put in place to curb the influx of inessential imports into the country. The competiveness of the local manufacturing sector in Zimbabwe has been heavily curtailed owing to stiff competition from cheaper imports from much larger manufacturing economies in particular China. VP Mnangagwa is right in saying that the over-reliance on imports is leading to under-utilisation of local manufacturing capacity, more unemployment and the persistent fiscal challenges the country currently faces.

The need for a Buy-Zimbabwe culture has to cover services and manufacturing alike. Zimbabwe has some of the best medical practitioners on the continent and as a country we have to buy into the services of our doctors and nurses. They are valued outside our borders and they should be equally valued within our borders. The talk of a Buy-Zimbabwe Culture is meaningless unless and until we start practising what we preach instead of making excuses. These are Buy-Zimbabwe services available in Zimbabwe and they are there to be accessed, top first and cascaded downwards. That is how confidence in the Buy-Zimbabwe campaign built.  I recently attended the Acadia Medical Centre in Harare and was impressed by quality of the medical and nursing care. I could never fault the efficiency of the Zimbabwe practitioners and it is amazing that some would waste finances going to South Africa for medical treatment.

There is need for legislative intervention to curb the inessential imports to rescue domestic manufacturers.  The necessity of protecting and promoting domestic industry is not a new phenomenon and throughout the years’ many economists and business leaders in the developed countries of today have vigorously defended infant industry protection. Zimbabwe’s manufacturing sector is emerging from over decade of a prolonged downturn and thus it is unrealistic and unfair to expect the country’s manufacturing sector to compete against the mature industries in the more advanced regional and advanced international economies without an initial period of deliberate government promotion and protection. The country’s manufacturing sector is in a dire state due to infrastructure deficiencies as well as shortage of capital, erratic power and water supplies. The key is for local manufacturers to focus on competiveness as the ultimate long-term objective but as VP Mnangagwa seem to be alluding to, government needs to initially offer the manufacturing sector a period infant industry protection as they build up their competiveness.

 The Zimbabwe manufacturing sector is emerging from over a decade-long slump and cannot be expected to compete against the mature industries in the more advanced regional and international economies without an initial period of deliberate government promotion and protection. It is going to take time, legislative intervention and more importantly investment in technological capabilities for manufacturing companies in Zimbabwe to absorb advanced technologies and build up on capacity and competitiveness. Of course there are those who will argue that we live in a global village and that competition is healthy for any economy. It is important to make a strong against premature trade liberalisation as it has been a failure and characterised by negative economic growth in per-capita terms and collapse of manufacturing with our domestic production swamped by cheap imports as capacity utilisation has dropped to low levels. With very few exceptions, tariff cuts and other measures of trade liberalisation have not brought about the anticipated economic growth and, in a lot of cases, have in fact brought near economic collapse. Free trade is one of those theories that is logically consistent with itself but not in the real world as it has not been universally linked to subsequent economic growth. This is evidenced by the economic chaos unleashed by the structural adjustment programmes of the early 1990s in Zimbabwe and other developing countries. Without some sort of infant industry protection and promotion the economy will have little hope of diversifying through industrialisation and accelerating growth on a sustainable basis. Zimbabwe’s manufacturing sector, in this early stage of revival, would benefit from this critical period of protection to enable it to maintain output and employment and this will subsequently spearhead economic growth.

The Buy-Zimbabwe Campaign or Culture should not be a gimmick. There should be a clear distinction between a campaign that’s a damp squid and one that thrives. A genuine Buy-Zimbabwe Culture is a powerful initiative that will help sustain domestic manufacturers and businesses while creating local wealth. Any half-hearted approach rarely creates a real shift in culture to make a real impact. A campaign of such a magnitude requires commitment and making certain sacrifices. The top has to take a genuine leading role in the Buy-Zimbabwe Campaign. There is no point in a top that is preaching a Buy-Zimbabwe Campaign whilst dressed in a $1000 Louis Vuitton suit and a pair of Church’s brogues shoes. Nobody will buy into such a campaign.

bernardbwoni.blogspot.com