Editorial Comment: Industry must step up to the plate

The Confederation of Zimbabwe Industries made a bold statement this week giving thumbs-up to the decision by Government to restrict imports of certain products that can be manufactured locally.

CZI’s pronouncement was probably the first by a representative voice of industry; although it came late, supports the vision byGovernment to cushion local manufacturers.

Imports have contributed to the de-industrialisation of Zimbabwe apart from draining about $36 billion from the economy.

Realising the impact imports have had on the economy and on local manufacturers, Government introduced Statutory Instrument 64 of 2016 which removed several basic products, including food and non-food items, from the Open General Import Licence, limiting imports to products not readily available locally.

More importantly, CZI among other industry voices, made representations to Government to tighten import regimes.

The fear and anxiety that Zimbabweans showed after the pronouncement of the measures, was to an extent, justified. In the minds of many locals restricting imports meant a return to the shortages of yesteryear.

To some it signalled long queues, juggling from one shop to the other.

This thinking is, to a large extent, fertilised by the actions of industry. When there were shortages, local industry did not rise to the occasion to produce enough to meet demand.

Instead, industry adopted a cry-baby mentality, choosing rather to join the importing bandwagon.

We see the same spirit now.

Instead of merely issuing out statements of support for the measures, industry should do more.

Since the measures were implemented why have we not seen industry giving us clear timeframes on steps they will take to increase capacity utilisation?

The manufacturing sector’s capacity, at 24 percent as at 2015, shows that there is excess idle capacity which industry should exploit.

It should not be left to Government to defend policy initiatives that benefit industry. Industry should stand up and defend its territory.

We need specific initiatives that business is taking to make sure the measures as introduced are worth the while.

Protectionism should not be infinite. At some point Government will have to withdraw these measures. They can never be permanent.

Industry should fill the gap, increase production and meet demand.

We know the first line of defence would be the operating environment and costs of production.

But on that again, Government does not offer piecemeal measures. It gives a package. While implementing measures to limit imports, Government is also involved in an ambitious programme to improve the doing business environment.

Already, major milestones have been recorded in the first and second 100-Day Rapid Results Initiative including legislative and administratively towards achieving a conducive doing business environment.

This initiative, apart from shortcutting processes, is looking at adjusting costs for business.

Where is the reciprocal effort from business? Why are our prices still high up there?

Business should also learn to sometimes make profits on volumes not just on margins. Innovation could be key.

On the whole, we should see business becoming more active, patriotic and proactive.

Business should step up to the plate.

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