SI64: Some good story (and more) to tell

my turnOne editor often remarks how for all the screaming negativity, which is the permanent fixture of privately-owned newspapers, there is almost always something positive about Zimbabwe tucked away in the inside pages of the same papers. These stories will be about growth in industry, or some investment —something that is far removed from the Armageddon-like reportage on the front pages.

It is called cognitive dissonance. The point being, Zimbabwe is not sinking lower than it has already done. For pessimists this could be hard to swallow yet it is the happy reality.

There was one of those positive stories in one of the papers yesterday. It concerned the issue of import restrictions on selected products, a regime otherwise known by the name of the Statutory Instrument — SI64 of 2016 — that gave birth to it.

The paper reported that the Confederation of Zimbabwe Industries (CZI) had said sectors of industry had seen orders going up by 50 percent after Government restricted the importation of certain products to boost local industries.

The paper explained that when SI64 was gazetted in July, the move triggered “mass protests either side of the Beitbridge border post”. But CZI president Busisa Moyo reported that SI64 has had positive impact in the local industry.

He said: “It’s a positive impact. In general for those companies on SI 64, we understand that orders are up 30 percent to 50 percent as a result of that. So all we encourage is that those companies that are supported under SI 64 must be prioritised in terms of payment because foreign payments can constrain production. So we need assistance in that regard.”

Ordinarily this should be something that must be celebrated. Only in the business of news — more so news borne of opposition press — it’s something to be hidden, almost to be ashamed of.

This piece of intelligence is not coming in isolation. Last week, Vice President Emmerson Mnangagwa visited two local companies, Wilmar Surface, producers of Pure Drop and Golden Glow cooking oil; and Pure Oil Industries which produces Zimgold cooking oil.

The companies reported growth in demand and production. The story in this sector has been that they already were outselling South African products, and selling at an even cheaper price.

Now, in light of SI64 things are even glowing more and promising for the sector. Pure Oil Industries’ operations head Mr Rod Musiyiwa is a happy man, what with the company employing close to 400 employees with average production of 7 million litres of cooking oil monthly.

“Our operations currently are on the right track — thanks to Government policies,” he said. And VP Mnangagwa, as we quoted him, said: “This has shown that our Ministry of Industry, Trade and Commerce made correct recommendations to the Government through Statutory Instrument 64 and as a result of that we are now producing cooking oil in Zimbabwe. I am advised that currently the two plants we have visited are producing domestic supplies and this has reduced our import bill and that is how we must go.”

It will be critical to recall that just a few short months ago when SI64 was introduced there was a lot of hullabaloo with the opposition, the press and some civic organisations protesting as though it was a ban on the very oxygen we breathe.

These quarters wept and they would not be comforted. They would not want to hear that SI64 was just for non-essential goods with Zimbabwean equivalents.

They would not want to hear that Zimbabwe did not really need to buy bottled water from South Africa — some of which we hear is just purified urine. No, they would not hear any of the arguments that Zimbabwe did not have to be buying anything and everything from toothpicks to tissue paper.

Besides, if anyone wanted to buy anything that had been restricted all they would need was a permit worth only US$30 and valid for a whole three months.

No, opponents would not hear that! In Beitbridge, there was rioting which apparently was also fuelled by some South African businesspeople from the border town of Musina.

They feared Musina would be a ghost town. There were fears of a diplomatic standoff between Zimbabwe and South Africa and the war was averted only because South Africa’s diplomacy remains as astute as it is measured and sober.

In one statement, South Africa’s Department of Trade and Industry (DTI) spokesperson, Sidwell Medupe said: “On behalf of the South African government, Minister of Trade and Industry Rob Davies has been engaging the Zimbabwean government bilaterally and through the sadc structures to find an amicable solution that is in accordance with Zimbabwe’s obligations of the sadc Protocol on Trade, while at the same time being sensitive to Zimbabwe’s industrial development and balance of payments challenges,” he said.

He asserted that “trade restrictions are necessary to support the development of local industries and to relieve the pressure of economic sanctions, which have led to balance of payments challenges”.

A war being averted!

The drums of war quickly dissipated. One wonders what would have happened had the issue been between Zimbabwe and some countries led by thoughtless, rash leaders.

The happy story, though, is that Zimbabwe is reaping in two short months the benefits of SI64 and this does not only come with increased production quantum: there will be jobs to be created and improved quality of local products and lower prices due to what they call economies of scale.

Besides Zimbabwe is saving lots of money that was otherwise being lost to unnecessary foreign expenditure.

These are the arguments that were made at the onset.

They should, for slow learners, begin to be making sense now.

It is also critical to underscore the fact that in an extraordinary situation such as Zimbabwe is going through, as the cliché goes, there will be need for extraordinary solutions and a modicum of pain is inevitable.

It is an exaggeration though to say the import restriction is something extraordinary.

It is just common sense.

(The bond notes are coming and we have heard familiar noises already. Let’s see how it will all pan out!)

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