Bureaucrats fatigued by endless taskforces

BUREAUCRATS are growing increasingly weary of embarking on routine and interminable “fact-finding” missions whose predictable outcomes and recommendations are not being implemented by Government.

There is growing concern that piles of policy documents that contain solutions that have been prescribed by various taskforces remain stashed in various Government departments.

While authorities continue to dither, the blood-letting in industry continues.

The Confederation of Zimbabwe Industries State of the Manufacturing Sector Survey released on October 8 indicated that capacity in the local manufacturing sector slumped to 36,3 percent in 2014 from 39,5 percent last year.

It was 57 percent in 2010.

CZI noted that “factors affecting industry and limiting capacity remain unchanged over the last three years”.

Recently, the chair of the advisory committee on ease and cost of doing business appointed by the Ministry of Industry and Commerce, Ms Maureen Chitewe, said there was need for Government to implement agreed strategies within set time-frames.

“It’s about policymakers making decisions on what needs to be done and implementing them with specific timeliness,” said Ms Chitewe when she presented her committee’s findings to the Industry Minister Mike Bimha on October 3.

Interestingly, she indicated that it was the third committee that had been set up to investigate the same subject in the last 12 months.

All the committees produced similar outcomes and recommendations; which showed bureaucracy, red tape and lack of Government will as stalling industrial and economic growth.

Another advisory committee on imports told Mr Bimha that rampant smuggling was hurting business badly, an issue now all too familiar to the Zimbabwean economic script.

The committee urged Government to show greater determination in tackling illegal imports and help revitalise local businesses.

However, Government says it cannot be expected to single-handedly deal with vices that need a multi-sectoral approach, including active industry participation.

“Smuggling is now an issue beyond Home Affairs Ministry only, but cuts across ministries and businesses. It needs a multi-sectoral approach because as Government alone, we cannot win this war,” Minister Bimha said.

The recent assessment of industry shows that companies are being affected by cash constraints, low consumer demand, stiff competition from imports, shortage of raw materials, erratic utility supplies and obsolete equipment. Government forecasts economic growth of 3,1 percent this year, down from the previous projection of 6,1 percent.

CZI Mashonaland president Mr Sifelani Jabangwe said on October 8 implementing policy remains the missing link, adding there was need to leverage on the various economic sub-sectors to promote growth.

There has been demonstrable success in the poultry and edible oils sub-sectors, he said.

“When we look at the end product and its value chain, other downstream industries will naturally be uplifted.

“For instance, the cooking oil industry is one success story whose strategy can be implemented in other sub sectors. Research was done in that area with stakeholders going even to South Africa where the imports came from.

“Cooking oil manufacturers now support soya beans production, bottling companies, label suppliers and distributors. Sectors do not work in isolation. Now cooking oil manufacturers’ capacity utilisation rose from around 30 percent to more than double,” he said. Cooking oil is one of the country’s sub-sectors that are performing well and able to meet local demand.

Mr Jabangwe added: “We need to identify the whole value chains, region by region, for instance, sugar in the Lowveld, bananas in Honde Valley area and this is what we have been missing.”

Low consumer demand and capital constraints have emerged as the two biggest challenges in industry, according to the CZI.

In 2012 and 2013 most companies regarded cash constraints as the major challenge to business growth.

Challenges associated with erratic water and power supplies continue to pile misery on firms.

Competition from imports has also been a contentious issue that has stirred debate, with industrialists calling for Government to tighten screws on borders to promote local production.

Companies continue to frown on the inherent cost of doing business in Zimbabwe, which continue to lend credence to the continued need to import.

In the past three years, the high cost of doing business has been cited as a hindrance to business growth.