The Sunday Mail
Sunday Mail Reporter
ZIMBABWE should set itself up to be self-reliant and achieve demand-led industrialisation, which is backed by local investment as a response to the effects of global adversaries such as Covid-19, climate change and global supply chain disruptions, President Mnangagwa has said.
Writing in his weekly column in this publication, the President said this would combat powerful Western countries led by the US taking advantage of the global crises to stifle sovereignty in developing countries.
The President said the obtaining price upheavals, also affecting most countries in the world, were testimony that without a self-determined economy, there was little that developing countries such as Zimbabwe could do to ward-off the effects of pandemics, climate change and militarised conflicts.
“We must believe in ourselves and set our targets high enough for a self-reliant Zimbabwe. Indeed Nyika Inovakwa Nevene Vayo,” the President said.
Zimbabwe could take a cue from India, which has embarked on local manufacturing to create local supply chains which supply domestic markets first, before venturing outward to meet global demand.
“Where it is still to build capabilities, India has targeted foreign direct investment, FDI, so industries are set up on Indian soil and employ Indians for skills transfer,” he said.
Demand-led industrialisation could transform the country’s huge potential in the agricultural sector and reduce its dependence on others.
“Like everything else, the Land is transformed through Labour. (Mushandi ngaakudzwe), the worker must be rewarded and respected,” he said.
“The paradox where workers cannot afford even the most basic goods produced by their own sweat, simply because of corporate profiteering, just has to be resolved once and for all.
“Our corporates are creating a situation where workers they employ cannot be vocal for the very local goods their sweat produces.”
President Mnangagwa said this situation was killing demand, thus undermining local production and the development of domestic value chains.
He said brands were strong and trusted globally only when they gained the confidence of locals.
“We must “Make in Zimbabwe” but do so efficiently and competitively so Zimbabweans can then be persuaded to Buy Zimbabwe, rather than elsewhere. This means moving away from reliance on antiquated production technologies so our production systems are technology-driven.
“Make in Zimbabwe” means “Retool Zimbabwe” and “Digitalise Zimbabwe”. It also means “Re-skill Zimbabwe”.
“These must be the new slogans for our Industries which must outgrow antiquated, sunset technologies they have been running on.”
President Mnangagwa said Government introduced the foreign currency auction system at the request of cooperates so they could retool.
“That facility must not merely repair old technologies instead of bringing in new and efficient technologies,” he said.
“The Ministry of Industry and Commerce must get different subsectors to draw up retooling strategies and to plan for efficient value chains.
“As we move into the future, Government will be less and less supportive of operations running on franchised imports. These have been wasting our foreign currency reserves while undermining our Buy Zimbabwe goal.
“Those involved have had long enough to build capital from those imports; now is the time for them to venture into manufacturing.”
On prices, President Mnangagwa said Government would soon be taking a hard stance on profiteering, having exhausted all avenues of moral persuasion.
“In respect of extortionate pricing, we have exhausted moral suasion as a way of causing sanity in the market,” he said.
“Indiscipline in the market is now so entrenched and even obstinate that it is increasingly becoming a political challenge to the whole establishment.
“New tools are now needed to deal with the problem. It is Government which gets blamed; it is Government which must tackle this wanton abuse in the marketplace.”
President Mnangagwa called on Zimbabwe Investment Development Agency (ZIDA) and Zimtrade to do more to attract foreign direct investment and sourcing export markets.
“Both our Zimbabwe Investment Development Agency, ZIDA, and our Zimtrade must scout for investors and investments, as well as markets, which talk to our Make in Zimbabwe Strategy,” he said.
“As we launch value chains for the local market, we must keep our eyes focused on exports as well.
“For far too long, we have waited to be found by foreign investors, instead of going out to pointedly accost foreign investors to key strategic areas we identify and prioritise as an Economy. That must now change so we are deliberate in our quest for FDI.”
President Mnangagwa said Government needed to invest in capital goods and technologies which would go with local value chains.
“As I write, Government’s infrastructure master plan caused companies involved to invest in road construction machinery,” he said.
“We are now very strong in that area and the same must happen in other areas. For instance, before long, Zimbabwe will be a major steel producer.
“We should be thinking ahead so we prepare for local machine-building and local tools manufacturing, now that steel will be easily available in the country.
“The same holds for precious minerals where production is growing in the context of our US$12 billion Mining Economy.”
Ends
