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It is pleasing to note that measures introduced by Government to cushion local industries from cheap inferior imports have started paying off. As reported in one of our stories in The Herald Business, the measures introduced through Statutory Instrument 64 have resulted in improvement of industrial capacity.In short, capacity in the manufacturing sector jumped to 47,4 percent in 2016 from 34,3 percent in 2015.

Also, some eight percent of companies sampled in the Confederation of Zimbabwe Industries Manufacturing Sector survey 2016 said they were now operating at 100 percent capacity as local demand increased owing to the restriction of imports.

What is heartening is that among the products on SI64 such as in the wood and furniture sector capacity has risen to 57,8 percent.

Metallic mineral products are now at 57,5 percent, foodstuffs 56,1 percent, paper, printing and packaging at 52,9 percent and drinks, tobacco and beverages at 52,4 percent capacity.

However, we must not now celebrate for ages. More work is still required. We can draw important lessons from the impact that SI64 has delivered.

The first lesson is that with more clarity and consistency on policy, our economy could be on the rebound sooner than we may think or plan.

This should be a lesson to all, Government and public sector included that if we put our minds and hearts together we can reduce the turnaround time for the economy. More important, as we learn from the survey that 77,1 percent of respondents rated policy instability as negative or very negative for the economy.

The second lesson we can derive is that Government and the private sector should consult during policy formulation. That way policies will be accurate and all encompassing. Importantly, that will results in buy in from all stakeholders.

When policies are all encompassing and have buy in, implementation will not be a problem and this will be beneficial to the economy. But while deriving some positives from the growth in capacity due to the import restrictions, we must not forget that this is not a permanent measure. It is temporary.

Companies should use this unique window to consolidate locally and pick positions in foreign markets. Actually, it is time to retool, rebuild and invest in new technologies. We say this because we are aware that the industry has been hamstrung by the use of antiquated machinery and outdated technology. Even the CZI survey showed that, for instance, in the Midlands province 70 percent of manufacturers were using outdated equipment. We call on business to do away with consumptive appetite and promote investment in infrastructure for future growth and sustainability.

While the Government’s intervention, through SI64, has worked wonders in helping local industry increase capacity, it should always be remembered that these measures are not forever. This exhorts Government and the manufacturing industry to work harder to put the house in order, so that by the time the measures fall away, industry can stand on its own. International trade rules will not allow the restriction to stand forever.

It is our fervent hope that the ongoing doing business reforms will usher in a more conducive environment for business to operate effectively and viably while effort will also go towards addressing structural issues such as poor infrastructure and the unnecessarily high cost of utilities such as water and power.

Importantly too, relying on the comfort zone created by the wall of protection presented by SI64, means local manufacturers will remain inward looking in terms of market, yet Zimbabwe needs growth exports to boost liquidity.

Attaining global competitiveness opens opportunities for bigger and wide export markets, giving local producers choice to explore most lucrative markets while generating the much-needed hard currency to sustain the domestic economy.

It is, however, our belief the restrictions are not a sustainable way of promoting local production by local firms.

Rather, they just provide breathing space for companies to retool and acquire appropriate technologies to be globally competitive.

As such, while enjoying the benefits of the import restrictions, companies should not sleep on the wheel since the import restrictions are only temporary. We expect businesses to take advantage of the measures to address their competitiveness bottlenecks.

At the same time, the Government should continue with its ongoing efforts to create the enabling environment that would help businesses to enhance operational efficiencies.

It is also worth noting that the country’s import bill is not sustainable and a part of the vicious cycle of liquidity crisis haunting the economy and in particular local industry. Since the country uses a basket of foreign currencies, liquidity in the domestic economy can only improve if industrial and export performance were to improve.