The Confederation of Zimbabwe Industries (CZI) has warned
of job losses and company closures after the government lifted a ban on the
importation of basic commodities.
CZI president Sifelani Jabangwe said local producers that
were protected by the repealed Statutory Instrument (SI) 122 of 2017 now had to
compete with foreign suppliers and they might find the going tough.
“Manufacturing companies have suppliers and if the
producers died, the manufacturer will also die,” he said. “These are indirect
jobs that we create as manufacturers.
“There is also what are called induced jobs whereby our
direct and indirect employees now go out and spend their money.
“If they do not have disposable incomes it means their jobs
are killed…so that is what we believe could happen if you don’t support local
industry.”
However, Jabangwe said the business lobby group was yet to
assess the impact of the scrapping of the import ban.
“We are trying to put a study together on labour, but the
total people employed are about maybe close to 800 000 to one million including
those in informal employment,” he said.
“Unfortunately, they all depend on manufactured products
because direct employment in the manufacturing sector would be about 15% or 20%
of that.”
The government said it was indefinitely suspending the
import ban to address shortages of basic commodities and price hikes that
worsened in recent weeks.
Affected products are animal fats, baked beans, body
creams, bottled water, cement, cereals, cheese, coffee creams, cooking oil,
crude soya oil, fertiliser, finished steel roofing sheets, wheat flour, ice
cream and jams.
They also include juice blends, margarine, mayonnaise,
packaging materials, peanut butter, pizza base, potato crisps, salad creams, shoe
polish, soap, sugar, synthetic hair products, wheelbarrows and wheelbarrow
parts, yoghurt, agro-chemicals, and stockfeeds.
Jabangwe said scrapping the ban did not address the
challenges faced by local producers.
“Foreign currency required by local companies to produce
the same volumes is less than that which is required to bring in finished
goods,” he said.
“So, if both require forex, how do you solve the problem by
bringing in something that requires more forex?
“What you have is greater demand for forex and that will
push the rate even higher, the prices even higher.”
Oil Expressers’ Association of Zimbabwe (OEAZ) president
Busisa Moyo concurred, saying the gains made during the SI 122 of 2017
dispensation would be reversed.
“Government will be throwing its own success under the bus
for a problem that they know is not SI 122 of 2017 not being successful, but
the shortage of foreign currency,” he said.
“The impact is going to be felt by workers in the
industry…that is the biggest and most negative impact.”
Moyo said the scrapping of the ban threatened the soya bean
out grower programme being rolled out by OEAZ to address the shortage of raw
materials.
OEAZ employs between 2 000 and 2 500 workers from its seven
members, which are Pure Oil Industries, Olivine Industries, United Refinery,
Surface Wilmer, Cangrove Pvt Limited, Willowton Zimbabwe and Chiseller.
Employers’ Confederation of Zimbabwe president Matthew
Chimbghandah said they expected some manufacturers to have a relook at their
cost structures and that could include reviewing employment costs.
“It is logical if your cost structure is high and you
cannot garner the sales you want as a company, how are you going to foot the
employment cost structure?
“It means people will have to look at their cost structure
and rationalise accordingly,” he said.
However, Chimbghandah said retrenchment was always the last
option for employers. Standard
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