The Sunday News
Mugove Hamadziripi, Sunday News Correspondent
AS of today, statistics show that Zimbabwe depends much on South Africa for its economic survival. The contemporary, deadly coronavirus which is tormenting the whole world and has affected all kinds of economic activities, including the social activities around the world, is affecting Zimbabwe negatively.
The recent social unrest in the form of looting and violence in South Africa have worsened the situation. The rhetoric question arises, for how long will Zimbabwe and other regional countries depend on South Africa on economic survival? Secondly, how best can Zimbabwe model its economy out of dependency on its southern neighbour South Africa?
South Africa’s two strategic economic regional giants — KwaZulu Natal and Gauteng have been affected by looting and violence. For Southern Africa, which still relies on South Africa, the ripple effects for local businesses could be felt in the coming weeks and beyond.
According to the Confederation of Zimbabwe Industries (CZI), Zimbabwe imports roughly 60 percent of its raw materials from the Republic of South Africa. Europe comes second at 13 percent, followed by China at 11 percent and the rest standing at 15 percent. The prevailing Covid-19 pandemic complemented by the social unrest, have exposed how feeble the whole region is in terms of economic activities.
Furthermore, Zimbabwe’s over-reliance on its southern neighbour showed its ugly side during xenophobic disturbances some time ago. The importation of goods into Zimbabwe were throttled or choked. The whole supply chain was temporarily dismantled.
Considering the riots and the devastating impact of Covid-19, a further turn of events has a high likelihood to cause further price increases on basic import commodities in Zimbabwe (and beyond).The supply of goods to Zimbabwe will be negatively affected, directly resulting in food shortages, and subsequently prices increases.
These concurring disruptions should act as a wakeup call for our policy makers and local producers, to start promoting or parroting the “buy local” rhetoric, as well as capacitating local producers.
There is every need to enhance local productive capacities in terms of food, which can be leveraged to fill some gaps, while the situation returns to normality in South Africa. There is a need to both support and encourage a shift in consumer behaviour.
Through these efforts, Zimbabwe should be able to realise the importance of procuring locally produced products and services. In the process, this will promote productive capacity. Despite Zimbabwe producing its own food, there still remains a gap, which is mostly supplemented by imports from neighbouring South Africa.
The trading scope should be widened thereby reduce dependence on South Africa, also ensuring that local demand is met. However, this would still expose Zimbabwe to external shocks and trade volatility.
Importantly, there is a need to enhance local production to ensure sufficient local supply of agricultural produce.
However, increasing local production alone would not be sufficient unless it is followed by an increase in the local procurement of agricultural produce.
The situation before Zimbabwe (and the rest of the region) — Covid-19 and the fear of trade volatility as a result of the current unrest in South Africa, creates an opportunity for Zimbabwe to understand and identify vulnerabilities in food production and supply-chain systems.
Identifying necessary investments and reforms to further accelerate transformation in the food and agriculture sector will be crucial in building resilience. It should be noted that the economy is the material basis of social life.
Economic self-sufficiency enables one to consolidate the independence of one’s country and live independently, provides a sure guarantee for change in ideology, independence in politics, and self-reliance in defence and ensures rich material and cultural lives for the people.
In order to implement the principle of economic self-sufficiency, Zimbabwe must build an independent national economy. For Zimbabwe, building an independent national economy means building an economy which is free from dependence on South Africa (and others), and which stands on its own feet, an economy which serves Zimbabwe’s own people and develops on the strength of the resources of Zimbabwe and by the efforts of Zimbabweans.
Such a perceived economy makes it possible to develop the productive forces quickly by utilising Zimbabwe’s natural resources in a rational and integrated way, improve the people’s living standard continuously, strengthen the material and technical foundations of development, and directly increase Zimbabwe’s political, economic power.
This will ensure the exercise of Zimbabwe’s complete sovereignty and equality in political and economic affairs in international relations. Taking a surgical look, it is very critical that Zimbabwe builds an independent economy.
It will only be after this has been achieved that, Zimbabwe will be able to free itself completely from South African domination.
In order to build an independent national economy, it is essential Zimbabwe to adhere to the principle of self-reliance in economic construction. We need to strongly believe in our own strength as a country, and depend on our economic construction.
As a people, educated and learned, energetic people, boasting of confidence in our own capability, will be able to do any difficult work before us. But a people who have no faith in their own power but only look up to others, will not do anything successfully.
At this juncture, only when the Government mobilises the efforts of Zimbabweans and national resources, and rely on our own financial resources and technology on the principle of self-reliance, Zimbabwe must develop the economy quickly at its own desire, overcome all difficulties and bring prosperity to the country.
If Zimbabwe is to build an independent national economy, the economy must be developed in a diversified and integral manner. Procedurally, should Zimbabwe embark on establishing an independent economy, it should be developed in such a multifarious and integral way as to produce independently heavy and light industry goods and agricultural products to make the country rich and powerful and improve the people’s living standard.
Such an economy can also develop safely and quickly on a solid basis. In order to build an independent economy which is developed in a multifarious and comprehensive way, it is necessary, as our practical experience shows, to follow the line of giving preference to the development of heavy industry and developing light industry and agriculture simultaneously.
However, it should be noted that building an independent national economy on the principle of self-reliance does not mean building an economy in isolation. An independent economy does not rule out international economic co-operation. Zimbabwe boasts of inexhaustible manpower resources and natural wealth and huge economic potentialities. The country has a good deal of valuable experience and techniques which can be shared and exchanged. Yes, it’s about time Zimbabwe become independent economically, thereby boosting local industries and improving livelihoods of Zimbabweans.
- Mugove Hamadziripi consults with the Centre for Impact Evaluation and Research Design and Erongo Consulting Group. He can be reached at [email protected] or [email protected], Twitter: @mhamadziripi
