The Sunday Mail
Munyaradzi Hwengwere
Statutory Instrument 64 of 2016 has been inappropriately labelled as an import ban, yet we all know or should know that Zimbabwe cannot ban imports. A ban is neither wise nor progressive in the short and long term. Zimbabwe is in the Southern African Development Community (Sadc), Common Market for Eastern and Southern Africa (Comesa) and global markets.
It has obligations to the world and thus cannot become an isolationist State. SI 64 of 2016 is an administrative instrument to manage mushrooming imports that Zimbabwe cannot sustain.
Of course, the country needs to balance imports and exports, that’s basic economic sense.
Therefore, we must understand that this is not a ban, but import management.
The reasoning is that we should prioritise procurement of locally-manufactured products.
However, the objectives of SI 64 were communicated badly, we need to invest in public communication strategies.
People need to be educated on new initiatives — bit by bit — as poor communication will create an impression that the authorities are arrogant and do not care about people’s welfare.
The SI tackles unemployment through reinvigorating local industry.
A country that is serious about generating wealth for itself and creating jobs and enterprises cannot do that by exporting capital and channelling money into the pockets of foreign capitals.
If you invest in poverty, you reap more poverty.
Zimbabwe’s cumulative year-on-year current account loss has been US$3 billion.
Its gross import bill is US$7 billion against exports of US$4 billion, putting our import receipts for the last five years at US$35 billion.
The net loss equals the annual Civil Service wage bill.
What does this mean in actual terms?
Let’s take a company, say, the size of Zimplats — Zimbabwe’s largest foreign investment since Independence — that has market capital of about US$1 billion.
That company employs 5 000 people who each have five dependents.
This translates to 25 000 people benefitting from the US$1 billion capitalisation.
Now, imagine what US$35 billion means or where it could have taken us as a country if it had been channelled towards development.
As Africa’s most literate society, let’s think of the number of jobs or entrepreneurs that our annual net loss of US$3 billion has created elsewhere.
We should understand that there is cause and effect in economic management.
Former Finance Minister Tendai Biti was fond of saying, “We must eat what we kill.”
Well, we, as a country, are eating way more than we are killing.
We need to wrap our minds around the fact that the US dollar is not generated in Zimbabwe.
The money comes from mining, tobacco, diaspora remittances and loans.
We would be ill-informed and myopic if we took US$7 billion from the US$4 billion that comes into the country and expect to prosper.
It is sad that the argument from the average Zimbabwean is that “we should be allowed to import because there are no industries”.
It appears some want to hide behind the fact that we must remain grounded because we are presently down.
“You have been kicked so hard, so why bother to think of a better day and pick yourself up?”
That is the thinking, a narrow-minded interpretation of issues.
People should understand that the idea of industry should not just be the manufacturing plants in Harare and Bulawayo.
We will miss the point if we look at industry that way as it is akin to viewing industry in historic, not futuristic terms.
We should see ourselves as creators of our own value and have a vision of the new industry that we want to create.
Some Zimbabweans are not asking for money to create their own enterprises, but to consume through imports.
In my view, while old industries could be dying, that death offers an opportunity for us young people and aspiring entrepreneurs to start something afresh.
Naturally, the missing link is capital, and in the absence of bank loans and large-scale foreign direct investment, we must work with Government to redirect import savings to business start-ups.
Our problems also reflect our business mindset. Communication from Zimbabwean business has been old-fashioned, smacking of arrogance in many instances.
Consumers are saying they want to buy local, but not to support an industry that doesn’t care about them.
That negativity stems from pricing and how businesses communicate with consumers.
Vendors and informal traders are not business’ enemies, but are potential partners.
Some fear that SI 64.2016 will leave them poorer, with big businesses excluding them from local supply development and procurement.
And so they see a business partner in the Messina shop-owner who is, in fact, ripping them off.
Business must urgently come up with campaigns that pledge their commitment to working with people on the ground to provide jobs, entrepreneurial opportunity and competitive prices.
Business must communicate SI 64.2016 more and more.
But Government authorities have not been transparent enough on local procurement.
How much money is Government spending on procuring goods and services from local industry?
How much are local authorities committing to local entrepreneurs and manufacturers?
In summary, we need three things:
1. A campaign to make the generality of Zimbabweans realise that they will benefit from the import restrictions. Everyone should be involved so that they can see the benefits of buying local. Business and Government must come up with a communication budget to support this initiative.
2. Government should show leadership in local procurement, not just in terms of good policies but through practical demonstration.
3. The “buy local” initiative needs to decentralise to all parts of Zimbabwe and we must now work with people on the street.
Enough of the boardroom talk,the game should be won with the vendors and informal and formal traders. In addition, we must invest in tracking prices and local procurement as we publicise them regularly.
Government and business must commit to their word.
Above all, we need to start communicating better. A huge indaba is required.
We cannot run away from building our prosperity, we cannot continue with this fear of creating jobs, wealth and pride for ourselves and the future generations.
Only Zimbabweans can save Zimbabwe.
◆ Mr Munyaradzi Hwengere is the chief executive of Buy Zimbabwe, a lobby group that advocates procurement of local goods and services. He shared these views with The Sunday Mail’s Chief Reporter Kuda Bwititi in Harare on July 6, 2016.
