INDUSTRY minister Welshman Ncube says Zimbabwe should go for devolution of power and economic activity in order to save industry in areas outside Harare from imminent collapse.
Report by Staff Writer
Ncube told businessdigest in an interview this week devolution, which would decentralise decision-making and economic activity, allows for better distribution of buying power and other resources across the country to support industry.
“The bulk of businesses find most of their customers are in Harare and lines of credit are mostly available in Harare,” he said.
“Decision-making is also done in Harare.”
“Apart from devolution, most importantly you need foreign direct investment to boost liquidity and confidence among investors,” Ncube added. “For the past two years, we have been talking about elections and people, even local investors, say let’s wait and see what will come out of the elections first. The moment we talk of elections investors become jittery, but if we were a normal country elections would not be a peculiar risk.”
His remarks come after regional bank, the African Development Bank (AfDB), said Zimbabwe’s economy was on a de-industrialisation path for cities outside Harare as companies succumb to huge operational costs due to huge distances from the capital.
The regional bank said in its December Zimbabwe Monthly Economic Review, shops were also relocating from other towns to Harare, a clear signal that distance from the capital city was proving to be a significant determinant of production costs.
Companies in Bulawayo continue closing shop, while recently companies have also been shutting down in Mutare.
Mutare-based Karina Textiles (Karina), which is the sole manufacturer of carpets and hand-knitting yarn in Zimbabwe, recently shut down to join other Mutare-based companies like PG Plate Glass, Zimboard, Mutare Board & Paper Mills (MBPM), Hunyani Papers and Cairns Food that succumbed to a myriad of operational challenges.
AfDB said companies with production systems requiring constant updating in line with technological developments are failing to limit production costs to levels below imports due to run-down infrastructure and under-investment during the hyperinflation era.
The bank said the closure of the monopolies like Karina and MBPM has left a void that any serious investor can easily fill after investing in cost-cutting technology.
The bank said: “There has been an increase in the number of licensed newspapers since dollarisation, yet the sole producer of newsprint in the country had to close shop in the face of increased demand for newsprint. Mutare Board & Paper Mills was also strategically located in the part of the country where access to pulp and paper was guaranteed from forestry and plantations.”
I think our country is too small for devolution, a lot of services may be duplicated at the national and provincial government levels if we go the devolution route. Some leaders may be looking at acheiving dominance in certain regions because they have not acheived strong support base at the national level.Consider that we already have a parliament and senate that is too big – I thinks the number of “people’s representatives” will grow much bigger with provincial assemblies.
Maybe those proposing devolution should provide more detail og how they want that to run and the number of people that will be employed in those provincial structures. The devil is in the details
Those who benefit at the expense of other provinces dont want devolution.Right now I must relocate to Harare because its expensive for me to travel every week for meeting at HQ. Too small is what is in between your ears.
i think everybody want to live there is no special group here.decisions should be undertaken at provincial level i cannot be governed by somebody coming like as far as Gaborone.uvele ufunani lapho engihlezi khona you have your place lapho okhona khona.each province has to take its own decisions there is nothing okuthiwa incane lapha.
Spot on, Zimbabwe needs devolution,
devolution is the way forward but we need to think deeply about it. more need to be done and really see how it works. Nigeria and south africa has done it. the provinces has to reduced again.
Look at other distotions of centralisation,during census we were counted in harare.harare is nowhere in that 2million people census how many people in army,cio,police,prisons were counted as harare residents and other organisations.centralisation is bullshit
When I was doing research my professor told me that in the social sciences meaning is constructed. In other words it depends on the interpreter. This article confirms what he meant and I understand why. Devolution which to the layman means decentralisation of power to allow for decison making in the areas affected by the decision such as provinces is now being given as the reason for the closure of compnies outside Harare. I find this ironic especially coming from the minister of Industry. This is not correct. The closure of industries in the country has absolutely nothing to do with devolution but macroeconomic instability precipitated by the chaotic land reform programme which resulted in people/investors losing their assets accumulated over severral generations. That the land reform programme was necessary or not is not the point. The issue is the perception it created on the investors. You cannot invest in a country where you can lose your assets and you have no recourse. Land reform has nothing to do with taking someone’s saleable assets such as tractors and combine harvestors. That is a serious issue.
Given that the Zim economy was anchored on a vibrant agriculture sector, it stands to reason that the decline in agriculture had serious downstream effects. Even if a decison was to be made in Bulawayo all the closed textile companies in Byo would have closed bcause the reason for their closure had nothing to do with devolution but a bigger national problem.
Companies have closed every where for various reasons all of which are linked to lack of seriousness on the part of governement. A trip through Workington/Sotherton, Masasa and Willowvale will show that it is not only companies in Bulawayo but eveywhere that have closed down. BNC and Hunyani Pulp and Paper are examples of big companies that closed down but are in Harare or near Harare. Jaggers, the envy of many in the retail sector also closed down but is in Harare. Henruy Dunn/Astra steel as it was known during its last days also closed down and is headquartered in Harare. It was a major steel supplier. Kwekwe is virtually closed down with its flagship Zimasco currently running only two furnaces out of six.Sable Chemicals is on and off and cannot be described as operational. Nitro Nobel the only explosives manufacturer in the country is closed down in a country where mining is growignat 40% per annum.Gweru is dead, with all companies closed down, Zimalloys, Zimcast, Meturlugical Services, David White Head, Radar Castings, National Railways. Bata and Zimglass are the only companies operating at very law capacity utilisation levels.
Comapnies that have remained operational include, Larfage in Harare, Portland in Bulawayo, and Collen Bawn(Gwanda),MCDnonalds Bricks in Bulawyo, the few Dawn mines in Bulawyo, Hwange Colliery in Matebeleland North, Hogarths in Bulawayo, Nimr and Chapman in Bulawayo, O.Conolly in Bulawyo, National Foods in Harare, Agrifoods in Harare, Zimbabwe Posphate industries in Harare. Tobacco Processing in Harare, National Breweries in Harare and Bulawyo, Traiangle and Hippo Valley in Masvingo, Unki Mine in Shurugwi, Zimplats in Chegutu, Mimosa in Zvishavane, Renco Mine in Masvingo, Marowa Diamonds in Zvishavane, Empresss Nickel Refinery in Kadoma, ZFC and Windmill in Harare, Colcom Foods, Mutare Bottling Comapny. However most of these are operating at very law levels of capacity utilisation.
The point that I am making is that it is not correct to advance an arguement using the wrong reasons otherwise we won’t get anywhere. If we were to adopt devolution today would we resuscitate the Bulawayo companies. I bet you the answr is no. Therefore the devolution debate must be totally devorced from the macroeconomic problems currently affecting business. The minister must in my opinion spend his time trying to address these issues instead of pursuing a political ideology and diverting attention from the real issues.
I have also mentioned that some of these closures are caused by incompetent management. Otherwise how do you explain the success of Econet, Delta, Inscor, Freda Rebecca, the Platinum Mines, FBC, Ok Zimbabwe etc.
Interesting as it is to try and fix something that was already working before. We need to see why in the first place devolution was expired . Was there a plan before the farms were taken over. All these and more only show a gross negligence in how the whole process of devolution was handled. From the previous regime to now it appears they are merely concerned with their own political survival first before the needs of all Zimbabweans. When will enough be enough for these kleptomaniac schizophrenic politicians who have their own agendas.
Mutumwa I understand u a 100 per cent but don’t u agree that the current system is no helping either.Surely there has to be a better system if u say u r against devolution. After all I don’t think there will be any harm in trying this devolution thing
This is very dull from Welshman. The issue is not devolution or not. The issue is creating a conducive environment for businesses – both local and foreign to thrive, its about progressive tax regimes, cutting bearucracy, curbing and punishing corruption and efficeint Government spending among other things. This is what will unlock economic growith not having parliment in Bulawayo.
@mutumwa, your article is well-researched……but I was shocked at the length!. This would do the trick if you had send it as a column contribution than on this platform where brevity is the catch word. Those who shout about devolution are the same empty vessels you hear sounding things about mthwakazi. Let them dream on. Their agenda is tribalistic, coz they want to kill Zimbabwe, literally and figuratively!
Zimbabwe needs devolution. There is nothing too small about Zim – the country, its economy and population are big enough.
Always remember that political governance systems are not always driven by economics, but there are other aspects such as socio-economic and political issues that they may seek to address in order to ensure a country’s political stability – an issue which most anti-devolution campaigners, who it would appear are mostly Shona speaking deliberately ignore as they are largely the beneficiaries of the present centralised governance system.
I can bet you – had the population ratios not been in favour of Shona tribes, many of these people would be in support of this idea. The idea that devolution will lead to secession is a red-herring made by Shona tribalists who thrive on domination instead of competing on an equal footing with everyone else.
These are people with no confidence in themselves who are worried that their incompetence at governance will be laid bear when their regions fall behind in comparison to others. The case of the Bulawayo city council compared to the rest of the major cities run by Shona led Couincils has long proved this beyond doubt.
It’s not competency but integrity & behavior. Running a council is the easiest thing to do, just like central government. First there are technocrats or council secretariat personnel. Decisions are made collectively by either cabinet or full council. Implementation is monitored by parliamentary portfolio committees and other oversight organs of state or council. The mayor should just facilitate the the crafting of the vision, strategy and operational plans and formalize that in the budget process. The president will do like wise. So to conclude that Byo mayor has some special skills of running the council is not correct. The thing is Byo councillors and mayor are committed to deliver basic services in accordance with the mandate they got from the people. How to you explain a situation whereby a council official in the city of Chitungwiza by name of Tanyanyiwa or something like that emptied the entire coffers for personal use…it’s beyond corruption but borders on evil. The man has no heart and is extremely selfish. Residents are dying of typhoid and cholera and you are busy siphoning resources from the council.
There is absolutely nothing wrong in discussing devolution separate from the current problems affecting industry. It is a proven system of governance which has worked elsewhere. I personally do not agree with the idea that Bulawayo industries could be different if there was devolution. In my long contribution I tried to demonstrate the state of industry accross the whole country including Harare where decisions are currently made. It is apparent that industries have closed down everywhere, with some towns like Mutare worse than Bulawyo. My point is let us hammer the nail on the head and not cloud issues.
Gono, I agree with you totally.
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