ZIMBABWE’S FUTILE PROTECTIONISM: A MISGUIDED BID FOR INDUSTRIAL REVIVAL
In a nation where even the most basic goods, from bottled water to matchsticks, are imported under the Statutory Instrument (SI 64), the decision by Zimbabwe to impose a blanket ban on used vehicles appears not only counterproductive but also devoid of logic. This move, championed by Zanu PF, is predicated on the flawed belief that the automotive industry, and by extension, the broader industrial sector, can be shielded from the deluge of imports that contribute to trade imbalances. However, this form of protectionism fails to tackle the root causes of Zimbabwe’s persistent trade deficits, which are characterized by the importation of goods of greater value than the exports of raw agricultural produce and minerals, sold for merely a fraction of their potential value.
The crux of the issue lies in the necessity for Zimbabwe to implement significant political and economic reforms to address the self-inflicted crisis that has led to these trade imbalances. As Moore (2014a) articulates, the country’s challenges stem from a complex interplay of factors, including a conflation of the ruling party with the state apparatus, which has facilitated a form of primitive accumulation. This scenario is exacerbated by a settler-capitalist mode of production and a ruling class engaged in rent-seeking behaviors, rather than fostering an environment conducive to economic growth and stability.
Amid triple-digit inflation, soaring national debt, and a tax regime that incentivizes evasion, Zimbabwe’s industrial sector is crying out for modernization and retooling, not protectionist policies that merely serve to stifle innovation and competitiveness. The sanctity of private property and the rule of law are paramount for the revival and stabilization of the industry, yet political deadlock and Zanu PF’s attempts to consolidate power have led to a stagnation in necessary reforms.
The decline of Zimbabwe’s industry since independence, once the second-largest in Africa, is a direct result of Zanu PF’s economic mismanagement and corruption. This decline signifies the loss of anything substantial left to protect, including the environment, emerging companies, and legacy businesses. The Economic Structural Adjustment Program (ESAP) was a half-hearted attempt to stem the economic bleeding, yet it was undermined by Zanu PF’s adherence to socialist policies and its disdain for democratic norms.
Zanu PF’s Look East Policy, a strategic pivot towards Asia following international isolation, further exposed Zimbabwean industries to competition from cheap imports, exacerbating unemployment and economic stagnation. This policy was not grounded in a genuine desire to enhance the welfare of the Zimbabwean people but was rather a bid for political survival, disconnected from the needs of the nation.
The adverse effects of an unfavorable tax regime and inflation have led to a decline in consumer wages, making locally manufactured goods uncompetitive against cheaper imports. This situation has forced consumers to look elsewhere, particularly to China, for affordable alternatives, further eroding the domestic industrial base.
In conclusion, the protectionist stance adopted by Zanu PF, particularly the ban on used vehicles, is a misguided attempt to address the symptoms of a crisis of its own making, rather than its underlying causes. Without comprehensive reforms that challenge the party-state conflation, curb corruption, and foster a conducive environment for business, Zimbabwe’s industrial sector will continue to languish. The revival and stabilization of the economy demand a departure from policies that prioritize political survival over the welfare of the Zimbabwean people. As long as Zanu PF remains resistant to change, the prospect of a thriving industry in Zimbabwe remains a distant dream.
