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UDI had made Zim industries competitive- Policy analyst
14 Jan 2016 at 05:54hrs | Views
The Universal Declaration of Independence in Rhodesia made the industry in Bulawayo grow, a policy analyst Batler Tambo has said.
He said at the devolution Conference he had to argue that while Special economic zones can be used to rebuild the Bulawayo economy he however do not agree that turning the city into a Textiles and Leather SEZ will make it competitive.
He said that was because for starters what made Bulawayo Industry grow had been the UDI sanctions busting moves which were continued post independence of low electricity tariffs,Import Substitution Industrialization,easy access to markets and the 1964 Bilateral Agreement between Apartheid South Africa and the then Rhodesian Government.
"All these made Rhodesian/Zimbabwean textiles more competitive but now all these factors no longer exists as electricity in the country costs up to US$14,5 cents per kw against regional averages of $8 cents," he said. "The 1964 agreement expired with the independence of South Africa in 1994 and the Export Revolving Fund that Zimbabwe enjoyed from the World bank was collapsed in 1990."
He said now Zimbabwean made textiles can longer compete against the Chinese made products and the South African products which are aided by last year's fall of the Rand by 25% and the weakening of the Rand again this weak.
"I suggested we look at other comparative advantages we have as a region (Matabeleland and Masvingo) like the Trans Limpopo Spatial development Initiative which was signed in 2001 but has made no progress at all plausible avenues out of this economic quagmire," he said.
He said at the devolution Conference he had to argue that while Special economic zones can be used to rebuild the Bulawayo economy he however do not agree that turning the city into a Textiles and Leather SEZ will make it competitive.
He said that was because for starters what made Bulawayo Industry grow had been the UDI sanctions busting moves which were continued post independence of low electricity tariffs,Import Substitution Industrialization,easy access to markets and the 1964 Bilateral Agreement between Apartheid South Africa and the then Rhodesian Government.
"All these made Rhodesian/Zimbabwean textiles more competitive but now all these factors no longer exists as electricity in the country costs up to US$14,5 cents per kw against regional averages of $8 cents," he said. "The 1964 agreement expired with the independence of South Africa in 1994 and the Export Revolving Fund that Zimbabwe enjoyed from the World bank was collapsed in 1990."
He said now Zimbabwean made textiles can longer compete against the Chinese made products and the South African products which are aided by last year's fall of the Rand by 25% and the weakening of the Rand again this weak.
"I suggested we look at other comparative advantages we have as a region (Matabeleland and Masvingo) like the Trans Limpopo Spatial development Initiative which was signed in 2001 but has made no progress at all plausible avenues out of this economic quagmire," he said.
Source - Byo24News
