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Africa Moyo and Lawson Madzivanyika
THE country’s import bill is likely to soar this year and people could lose their jobs as private companies turn to imported raw materials to sustain production levels in the wake of adverse weather conditions that have blighted crop output.
El-Nino weather conditions, which have affected most parts of Southern Africa, are expected to significantly impact on the 2015/2016 cropping season, with agriculture supplying about 60 percent of Zimbabwe industry’s raw materials.
El-Nino usually manifests through the appearance of unusually warm, nutrient-poor water off northern Peru and Ecuador, typically in late December.
Confederation of Zimbabwe Industries boss Mr Busisa Moyo told The Sunday Mail Business there was a strong correlation between GDP and agricultural output.
“Companies will have to look for alternative raw materials and may have to restructure their labour force and mothball parts or entire plants where raw materials are not available in order to survive. This will see further de-industrialisation,” said Mr Moyo.
The country’s import bill topped US$6,3 billion last year against exports of US$3,4 billion.
CZI said Government should be cautious in ensuring only raw materials — and not finished goods — were imported in order to preserve jobs.
Industry advised Government to, for example, import maize and soya beans rather than mealie-meal and cooking oil.
“Only 15 percent of industry that existed in 1995 exists today. Jobs and industrial capability will have to be protected and preserved as we navigate the drought situation by involving and channelling processing of food destined for aid to the private sector,” said Mr Moyo.
When aid is channelled through CZI affiliates such as the Grain Millers Association of Zimbabwe and the Stock Feed Manufacturers Association, jobs will be retained while new opportunities will potentially be created.
CZI also urged Government to “re-look at our stance” on non-GMO raw materials since over 60 percent of “what we consume as finished products is already GMO”.
The industry representative body was of the opinion that the country’s stoic resistance of GMO products had “been overtaken by events”, as market demand and economic motives usually won against “impractical measures in desperate times”.
In September 2015, the Parliamentary Portfolio Committee on Higher and Tertiary Education, Science and Technology Development urged Government to consider lifting the ban on GMO products to ensure food security.
Online Reporter