eBusiness Weekly
Martin Kadzere and Africa Moyo
Retailers and industrialists yesterday differed sharply over proposals to revoke Statutory Instrument 64 of 2016 (now SI 122 of 2017), with the manufacturers arguing that the issuance of temporary import permits to companies with free funds to avert shortages of commodities would decimate local firms that are on road to recovery.
This comes as cooking oil, sugar and flour, among other basic commodities, have largely disappeared from supermarket shelves while the fewer places where they are available, the prices have been increased considerably.
The shortages of basic goods and the subsequent price increases followed a recent directive by the Reserve Bank of Zimbabwe to allow banks to separate accounts for local money circulating in the banking system and foreign currency accounts.
The ruling ZANU-PF party has suggested that SI 64, which was introduced in July 2016 to restrict importation of goods that can be produced locally, should be revoked to allow firms with free funds to import some basic goods.
ZANU-PF spokesperson Ambassador Simon Khaya-Moyo implored Government to consider opening the borders to avert shortages of essential goods.
Confederation of Zimbabwe Retailers president Denford Mutashu yesterday concurred with Ambassador Khaya-Moyo.
“We are saying let’s temporarily open the borders. Allow those with free funds to bring in goods, at least in the short-term, while giving the Government enough time to mobilise resources to support local companies,” said Mutashu.
Mutashu believes the move would avert shortages and further price rises.
He said the association has already made the proposal to the Ministry of Industry and Commerce.
No comment could be obtained from both Minister Nqobizitha Mangaliso Ndlovu and his deputy Raji Modi as their mobile phones were unreachable.
Mutashu said the current situation was “very bad” and required a “sober and positive engagement” among stakeholders to ensure sanity prevailed in the economy.
However, Confederation of Zimbabwe Industries (CZI) president Sifelani Jabangwe yesterday said panic buying, which has gripped citizens, was temporary and the situation would improve in “the next few days”.
He urged people to remain calm.
Busisa Moyo, chairman of the Oil Expressers Association of Zimbabwe said panic buying resulted from policy announcements but “sobriety and strategic responses were needed”.
“I can understand the concerns created by the latest policy pronouncements, which have torched an economic storm through panic buying, arbitrageurs taking advantage of price distortions, social media ‘fear frenzy’ mongering,” said Moyo.
Moyo said lifting the restrictions would plunge the economy into a tailspin.
“Let us be mindful that SI 64 was put in place to achieve several key economic objectives.
“Firstly, it was to create local employment today, the manufacturing industry employs over 100 000 people.
“Secondly, it was to localise certain key value chains such as maize, soyabean, wheat flour, milk, sorghum, poultry meats and other crops.
“Today, industry is looking at out-growers for most of these crops and poultry and creating employment.
“Zimbabwe had clearly made a choice not to be a supermarket economy for basics as a country that has deep history of manufacturing and farming. Abandoning this thrust while seeming like a ‘quick fix’, will plunge the economy into a tailspin.”
Moyo said such a move would result in massive job losses, adding that there was need to “build consensus rather than adding paraffin to the fire”.
“Solid leadership and reaching out can calm the economic storm very quickly. We have been writing letters since beginning of September and seeking an audience so fundamentals can be addressed. Everything boils down to a foreign currency shortage. There are no witches; just foreign currency is not enough for our own consumption.”
Dairibord Holdings chief executive Anthony Mandiwanza, said revoking the SI 64 was not the solution unless the “government is saying close all your factories and let people go home.”
ZANU-PF spokesperson Ambassador Simon Khaya Moyo said Government should consider opening the borders to avert shortages of essential goods.
