Opinion / Columnist
New imports rules: panacea to employment creation
22 Jun 2016 at 14:07hrs | Views
The move taken by government through the Ministry of Industry and Commerce in introducing some new imports rules meant to ban importation of some basic commodities thereby promoting the local industry should be embraced by all patriotic Zimbabweans as the move has a potential to create employment and benefit thousands of the unemployed youths in the country. Recently the government came up with a Statutory Instrument Number 64 of 2016 meant to tighten screws on imports of all basic commodities so that people embrace the Buy Zimbabwe process thereby promoting the local industry.
While the move to introduce the SI number 64 came as a surprise to the public with reports that there was chaos in Beitbridge Border Post on Saturday 18 June 2016 as importers were barred by the Zimbabwe Revenue Authority (Zimra) to bring their imports in the country but the idea is quite noble. Zimbabweans need to realise that for the local industry to be viable there is need for those local products to be utilised through sales. So if Zimbabweans rely more on importing basic commodities from other countries who would then buy the local products. Employment creation come with people supporting the local industry and that can begin by banning importation of basic commodities. The Buy Zimbabwe Trust has been urging people to embrace buying some local products so that the local industry becomes viable thereby creating employment for the unemployed youths. So that move taken by government would fulfil the Buy Zimbabwe`s appeal.
For those who might not be aware of what the SI number 64 of 2016 stands for, let this writer give you a brief on it. This Statutory Instrument was promulgated by the government as a way of banning importation of basic materials and goods by individuals without import licences. This was done as a way of making Zimbabweans do promote local industry not relying on imports. Of late the local industry has shown the nation that it has the capacity to produce some required products for the local market hence there is need to support it. It is important for Zimbabweans to know some of the goods that have been listed as not allowed to be imported into the country as the local industry is now capable of producing such goods. Such products includes building materials, bottled water, door and window frames, wheelbarrows, baked beans, fertiliser, beds, office furniture, second hand tyres, canned fruits, vegetables, cereals, cheese and ice creams, salad creams, shoe polish, cooking oil and others basic commodities as outlined by that SI number 64 of 2016.
The local industry has been producing all the above mentioned products and that alone means Zimbabweans should not keep on relying on foreign products when such products are available locally. It is prudent for Zimbabweans to buy some local products so that the liquidity problems currently creating havoc in the country are resolved. For the local industry to survive and become viable those people good at importing basic commodities should start buying their basic products from within the country.
It is a fact and known that Zimbabwe is facing a critical shortage of money and that problem can also be rectified if people buy what they want from within the country. If the money circulating in the country is not externalised through the importation of some basic commodities it means that the issue of some liquidity problems could be minimised or rectified. Does that make any economic sense for someone to import door frames, window frames, and ice creams, bottled water etc. from other countries when such products and goods are available locally?
Some people forget that by importing large quantities of basic commodities into the country, one would have externalised money meant to circulate in the country through the buying of such commodities from outside. Going to South Africa, Botswana or Mozambique to buy some basic commodities when they are also available in the country is tantamount to externalising the very foreign currency which Zimbabwe is in need of. So Zimbabweans should embrace the Buy Zimbabwe concept so that the local industry is not starved of the necessary capital needed for operations.
Buy Zimbabwe Trust, an initiative encouraging locals to buy products made locally, should also be applauded for that move of encouraging Zimbabweans to buy local products as their cry is coming to fruition. People should realise that a country can only be developed when the local industry is assisted to grow by not shunning some local products. Protecting local industry through such policies like this SI number 64 of 2016 is a good move which must not be abused by the local companies for their benefit. Some local companies should not exploit the consumers by overcharging their products as that would create chaos among those who have been hindered from importing their basic commodities from outside the country.
It should also be known by government that protecting local industries should not bring mediocrity on the part of products produced locally. The local industries should make sure that they produce standardized products that make people feel happy to part away with their money in buying such products. Government should also not protect failure but should encourage companies to produce products that satisfy the local market. As such the local industry should produce goods that satisfy the local market and some for export. It would not be proper for the local industry to fail to satisfy the local market after the government has put forward laws that protect this sector.
A careful consideration should be applied in assisting companies and industries with the capacity to help the country recover, than protecting everything as this could also end up hurting the markets. So companies should be geared in making sure that the local market is not starved at the time when imports have been banned. The same local industry should not raise the prices of their goods unnecessarily thereby defeating the whole process of banning imports from other countries. There is need for a win-win scenario between the local industry and some local consumers. While the local industry would be for profits but there would also be need for some consumers to be handled well not to become abused by companies in by expensive as that would sound counterproductive.
For that reason Zimbabweans should embrace the Buy Zimbabwe concept so that the local industry becomes well operational as a means to create job opportunities for the unemployed youths in the country.
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Hanyani Matitemba <mhanyani@yahoo.com
While the move to introduce the SI number 64 came as a surprise to the public with reports that there was chaos in Beitbridge Border Post on Saturday 18 June 2016 as importers were barred by the Zimbabwe Revenue Authority (Zimra) to bring their imports in the country but the idea is quite noble. Zimbabweans need to realise that for the local industry to be viable there is need for those local products to be utilised through sales. So if Zimbabweans rely more on importing basic commodities from other countries who would then buy the local products. Employment creation come with people supporting the local industry and that can begin by banning importation of basic commodities. The Buy Zimbabwe Trust has been urging people to embrace buying some local products so that the local industry becomes viable thereby creating employment for the unemployed youths. So that move taken by government would fulfil the Buy Zimbabwe`s appeal.
For those who might not be aware of what the SI number 64 of 2016 stands for, let this writer give you a brief on it. This Statutory Instrument was promulgated by the government as a way of banning importation of basic materials and goods by individuals without import licences. This was done as a way of making Zimbabweans do promote local industry not relying on imports. Of late the local industry has shown the nation that it has the capacity to produce some required products for the local market hence there is need to support it. It is important for Zimbabweans to know some of the goods that have been listed as not allowed to be imported into the country as the local industry is now capable of producing such goods. Such products includes building materials, bottled water, door and window frames, wheelbarrows, baked beans, fertiliser, beds, office furniture, second hand tyres, canned fruits, vegetables, cereals, cheese and ice creams, salad creams, shoe polish, cooking oil and others basic commodities as outlined by that SI number 64 of 2016.
The local industry has been producing all the above mentioned products and that alone means Zimbabweans should not keep on relying on foreign products when such products are available locally. It is prudent for Zimbabweans to buy some local products so that the liquidity problems currently creating havoc in the country are resolved. For the local industry to survive and become viable those people good at importing basic commodities should start buying their basic products from within the country.
It is a fact and known that Zimbabwe is facing a critical shortage of money and that problem can also be rectified if people buy what they want from within the country. If the money circulating in the country is not externalised through the importation of some basic commodities it means that the issue of some liquidity problems could be minimised or rectified. Does that make any economic sense for someone to import door frames, window frames, and ice creams, bottled water etc. from other countries when such products and goods are available locally?
Some people forget that by importing large quantities of basic commodities into the country, one would have externalised money meant to circulate in the country through the buying of such commodities from outside. Going to South Africa, Botswana or Mozambique to buy some basic commodities when they are also available in the country is tantamount to externalising the very foreign currency which Zimbabwe is in need of. So Zimbabweans should embrace the Buy Zimbabwe concept so that the local industry is not starved of the necessary capital needed for operations.
Buy Zimbabwe Trust, an initiative encouraging locals to buy products made locally, should also be applauded for that move of encouraging Zimbabweans to buy local products as their cry is coming to fruition. People should realise that a country can only be developed when the local industry is assisted to grow by not shunning some local products. Protecting local industry through such policies like this SI number 64 of 2016 is a good move which must not be abused by the local companies for their benefit. Some local companies should not exploit the consumers by overcharging their products as that would create chaos among those who have been hindered from importing their basic commodities from outside the country.
It should also be known by government that protecting local industries should not bring mediocrity on the part of products produced locally. The local industries should make sure that they produce standardized products that make people feel happy to part away with their money in buying such products. Government should also not protect failure but should encourage companies to produce products that satisfy the local market. As such the local industry should produce goods that satisfy the local market and some for export. It would not be proper for the local industry to fail to satisfy the local market after the government has put forward laws that protect this sector.
A careful consideration should be applied in assisting companies and industries with the capacity to help the country recover, than protecting everything as this could also end up hurting the markets. So companies should be geared in making sure that the local market is not starved at the time when imports have been banned. The same local industry should not raise the prices of their goods unnecessarily thereby defeating the whole process of banning imports from other countries. There is need for a win-win scenario between the local industry and some local consumers. While the local industry would be for profits but there would also be need for some consumers to be handled well not to become abused by companies in by expensive as that would sound counterproductive.
For that reason Zimbabweans should embrace the Buy Zimbabwe concept so that the local industry becomes well operational as a means to create job opportunities for the unemployed youths in the country.
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Hanyani Matitemba <mhanyani@yahoo.com
Source - Mukachana Hanyani
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