Editorial Comment: Real industrialists must stand up Zimbabwe Defence Forces Commander General Costantine Chiwenga stresses a point while addressing the Confederation of Zimbabwe Industry annual general meeting, while Major-General Martin Chedondo (centre) and CZI president Busisa Moyo follow proceedings.— (Picture by Justin Mutenda)

We take the Commander of the Zimbabwe Defence Forces General Constantine Chiwenga’s challenge to industry seriously.

In his words, Gen Chiwenga said he craves for “the development of a courageous and patriotic crop of businesses that are aggressive, independent and venturesome”.

He urged industry to invest in research and development. This, he said, would make the army and other sectors procure locally as products would be tailor-made for the local market.

This would help grow the economy. In other words, Gen Chiwenga was saying industry should not only look at higher prices to make profits. Innovation could lead to production at cheaper prices. While we appreciate the challenges Zimbabwe and industry are facing, we are concerned that the crybaby mentality in industry is getting irritating.

From the clothing sector to the motor industry, to cement manufacturers, everyone is crying for protection. But industry should not expect Government to keep protection measures in place forever. Industrialists must be proactive and innovative to take advantage of the raft of measures to ensure survival.

One of the key measures industry itself should take on board is looking at its cost structures. While we agree that cheap imports flooding the market are crowding out local industry, we also note that our own cost structures may be contributing to the flight of business to regional competitors.

Gen Chiwenga mentioned that at times the army is forced to procure outside the country because local prices are way too high compared to those prevailing in the region.

Using the motor industry as a case study, General Chiwenga said the cost of vehicles locally was a put off. This has made imported vehicles cheaper even though the army prefers locally assembled vehicles. To buttress his point, he said the popular Puma used by the army was designed and assembled locally in the past while Dahmer provided most coaches the army used.

He made an important contribution which industry should take seriously to ensure their survival.

The military is one of the largest single Government spenders and having the military buying locally would ensure survival of local industries. But not at the current costs which in some cases are treble those prevailing in the region.

Industry, therefore, should come up with survival strategies that complement Government efforts. Indeed, we agree with the Ministry of Industry and Commerce’s position that protection should not be forever.

We are aware that some of the measures that Government has introduced have not benefited the consumers to the expected extent.

The measures that have been introduced include bans on certain imports and duty hikes on other products to stop the flood of cheap imports as Government sought to protect ailing local industry. But we are concerned that despite the safety nets Government has created, local industry still believes in profiteering and more protection.

We know very well that the cost structure in Zimbabwe is on the high side compared to the region due to the use of the United States dollar. We have noticed that even in situations where Government has introduced rebates on imports of raw materials, our costs still remain way too high.

The benefit is not being passed on to the consumer. And we ask why? Worse still, in some industries workers are not being paid living wages if they are being paid at all! The fact that Government has ring-fenced our industry should see industry passing on the benefits to consumers. Competition is not entirely bad. It is necessary for the benefit of the consumer. Therefore, over and above Government efforts, industry should make own efforts to survive.

Make hay while the sun shines.

It may be time for industry to consider moving volumes as opposed to making huge margins on fewer units. It would not make business sense to keep goods on the shelves because you want to make a higher margin per unit instead of pushing volumes at thin margins.

Innovation could bring down costs.

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