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ECONOMIC analysts have called on Government to revisit the protectionist policy and align turnaround strategies in different ministries.
Economic analyst Mr Charles Tawazadza said Zimbabwe should learn from neighbouring South Africa’s protectionist policies on key industry.He said despite being Africa’s second largest economy, South Africa still uses protectionist policies on its key industry like its car assembling industry, protected by the local procurement threshold policy.
He said ironically in Zimbabwe Government opens its borders to all despite having an ailing manufacturing industry operating at 36 percent capacity utilisation.
“Protectionism in trade goes almost as far back as that of trade itself. We are, however, talking about protectionism with a growth vision guided by benchmarks. In South Africa the Automotive Investment Scheme launched in 2009 up to date has approved a total of R3,8 billion worth of incentive for over 160 investment projects sustaining more than 50 000 jobs.
“The companies develop sedan cars, minibuses and buses. Several industries have also been designated under the local content protectionist policies that include canned vegetables, clothing, textiles, leather and footwear.
“However, in Zimbabwe where our industry is literally bleeding and on its knees, you will be surprised to find Government still allowing the State Procurement Board to give tenders for $3 495 147 to local car dealing firms like Croco Motors to import brand-new vehicles at the expense of local car assemblers like Quest Motors and Willowvale Mazda Motors Industries currently operating at below 8 percent capacity utilisation,’’ he said.
Mr Tawazadza added that South Africa President Jacob Zuma in his 2015 State of the Nation Address revealed that in the next five years the state (South African) would procure at least 75 percent of its goods and services locally.
He said it was high time Zimbabwe effectively enforced the Buy-Zimbabwe campaign taking lessons from South Africa and Kenya.
Mr Tawazadza said there was also need to align policy strategies in various ministries to augment the binding economic turnaround strategy Zimbabwe Agenda for Sustainable Socio-Economic Transformation.
“Let us look at ZimAsset and the intended achievements of economic growth, employment creation, industrialisation, food security and value addition.
“If we imported vehicles at a cost of $469 million last year, what contribution does that have on our Gross Domestic Product or employment creation efforts?’’ he said.
He emphasised the need to have coherence in the country’s turnaround strategies guided by pragmatism.
Zimbabwe Confederation of Industries national vice-president Mr Henry Nemaire said ideally South Africa has a free trade policy but its protectionist measures were commendable and Zimbabwe should learn from them.
The Tanganda Tea Company finance director said Zimbabwe had no tariffs for competing tea products from South Africa but the inverse was true for Zimbabwean tea products exported to South Africa.
“We are currently trying to export our new tea brand to South Africa but it is costing us over $30 000 just to get our product on their shelves through various hefty levies, government procurement provisions and local content provisions in South Africa.
“Our borders are too open because of the free trade policy and this is contributing to the collapse of our industry. Let us learn from South Africa on exercising a bit of protectionism on key sectors as we find our footing economically,” said Mr Nemaire.
Economist Mr Tendai Mukarakati said Zimbabwe had a justified reason for protectionism through the infant industry argument.
“Examples are the infant industry argument, protection to increase employment in local industry and enforcing tariffs to offset foreign dumping. Our economic challenges are no secret to the world and Government should also not fear calling for drastic protectionist measures to boost local industry,” he said.
Quest Motors managing director Mr Tarik Adams said if Government does not intervene this year to assist local car assembling companies, most of them were going to close shop and render thousands out of employment.
In Mutare’s once industrious Nyakamete industrial area, Quest Motors is one of the few big, long-established private companies still operating along with Tanganda Tea Company.
Online Reporter