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policy regime that stops the existing tide of imports, which in 2012 alone rose by more than US$300 million resulting in a US$3,6 billion deficit between exports and imports.
Exports from the country were below US$5 billion while imports were above US$8 billion. Like the governor, many are puzzled why our economic architects are failing to understand that there are limited options that are feasible for Zimbabwe to balance our current account and improve our liquidity.
Particularly so in the absence of any meaningful foreign aid and foreign direct investments coming into the country.
Increasing our export receipts are the most obvious solution, however, given the state of our economy, the need for new machinery, massive influx of cheap foreign alternatives, this is certainly not an immediate option.
Revival of our manufacturing sector is clearly a medium- to long-term programme. This leaves us with one option, which is short term in nature, that of adopting a protectionist approach when it comes to our industry.
We must take a decision to slash imports and promote local production through buying locally produced goods. This is exactly the message that we have been trying to put out there as Buy Zimbabwe through our campaigns.
It makes little sense to be disciples of a free market without accepting our skewed reality. In his postulation of the free market economy, Adam Smith was clear that for markets to function smoothly there must be no hindrance to trade.
In our case half the conditions that militate against efficient functioning of the market are externally imposed limitations.
As result we can’t access credit, we can’t retool industry, neither can we trade freely with the world. If we have to do so we need to start protecting industry as a short-term measure.
We need to get a buy-in of all Zimbabweans to the Buy Zimbabwe campaign.
Just this past holiday, Zimbabwe experienced a record in terms of deaths on our roads due to accidents. It’s no secret that imported cars from Japan were in the majority of vehicles that became death traps.
While Zimbabweans continue to trek to Beitbridge en route to Musina to buy second-hand cars, the local motor industry has largely been neglected.
The industry, which at its peak had over 10 000 direct employees, is teetering on the brink of collapse.
However, liberal economists will probably tell you that there is nothing wrong with the status quo as they are such profound believers in choice.
However, their firm belief in choice blinds them from seeing the connection between policies that promote unfettered trade with South Africa and that country’s adoption of compulsory blending and strong local procurement laws. Worse still, they do not see the obvious link between a deteriorating road infrastructure, high accidents on the road, congestion, unemployment and this continued reliance on imports.
I would like to commend Government on behalf of Buy Zimbabwe for eventually gazetting a Statutory Instrument 17 of 2013 that makes it mandatory for all licensed oil companies to sell petrol blended with a minimum of 5 percent of locally produced ethanol.
It is, however, unfortunate that it has taken long for the Government to come up with such legislation resulting in over 8 000 employees being sent home.
This is the kind of boldness that we require as a nation. The same boldness that we exhibited in 2008 to accept the stark reality on the ground.
Thankfully, we took a momentous decision to accept the multi-currency regime as a key milestone to change our course.
Trouble, however, is we then fail to appreciate that use of currency is not the same as economic policy. By their very nature multi ple currencies had to be backed by an economic policy that focused on objectives of transforming lives, reducing unemployment and promoting local businesses to succeed.
A local focus underpinned by regional and global realities was then to define how we manage our economic affairs.
As it is, we have an economic policy that takes pride in seeing unemployed people who drive cars for few days either crash them, remain poor and congest streets.
Stop useless imports and save Zimbabwe. Let us promote our local products.
Vandudzai Zirebwa is an economist at Buy Zimbabwe. She can be contacted on email: [email protected], 0773751878
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