How Zimbabwe can revive industry and end its cash crisis

Binga South Member of Parliament Gabbuza Joel Gabbuza says the best way to revive Zimbabwe’s industry is to target the manufacturing of a few kitchen commodities because those are the major things that the country is importing.

Government should then introduce an import tax of even 5 percent, like the current export incentive, because with $6 billion worth of imports every year the government can raise $300 000 which can be used to revive industry.

Gabbuza said the current export incentive would not revive industry at all because it was targeted at a few companies and commodities.

“Firstly, we are giving incentives of 5% to the chrome industry and the gold sector, which are the only things that are there in terms of exports.  If you look at a gold or chrome plant, even if you give them a 5% incentive, if the capacity of the processing plant is to produce 10 tonnes, no matter how much incentives you offer, that plant will not produce any excess, so that 5% will not result in extra production at all.  The plant is built to process a certain amount of commodity or mineral output per month or per day,” he said.

“Mr. Speaker Sir, we are also incentivising things like tobacco, which is seasonal.  After we have reaped all our tobacco, what else will bring in foreign currency?  It is a seasonal crop and once it is reaped and sold, it is done.  Therefore, we will only earn foreign currency from tobacco over a certain period.”

Gabbuza reiterated that half of Zimbabwe’s problems could be solved by resuscitating ZISCO.

“This is because if ZISCO Steel starts operating, automatically Hwange Colliery will start moving and the National Railways of Zimbabwe will also start operating.  What will ZISCO Steel do?  If it starts operating, the fertilizer price of ammonium nitrate will definitely go down because ZISCO Steel subsidises Sable Chemicals through buying oxygen.

“The mining industry will start operating, the cost of operations will be reduced because most of the dynamites used in the industries now are being imported from such countries as China, South Africa and others, which is moving foreign currency outside the country.  However, if ZISCO Steel was operational, explosives automatically follow because they are a by-product of the hydrogen produced at Sable Chemicals where Sable supports ZISCO Steel.  That will be helpful to us.”

Gabbuza said he was fully behind the call by Chegutu West legislator Dextor Nduna to force Asian businesses to bank.

“If you move around town right now looking for the only business places that are ticking – If you go to Mahommed Mussa, I suspect they could be cashing in US$100 000 or more as turnover per day.  However, the question is, is that money circulating in our banks?”   he asked.

“If we bank US$100 000 cash from Mahommed Mussa alone, will there be a cash shortage in the banks.  Go to the Gulf Complex along Chinhoyi Street and the shops along all those streets around the Gulf Complex, all the shops are Chinese shops and there is a hive of business.  Definitely, all the money being circulated there is not being channelled to the banks.  If they were being channelled to the banks, would we still be having queues of people waiting for money outside banks?

“I think those are some of the things that the Minister must try to consider and see if we can possibly mop up all the money from people who are not keeping money in the banks so that it is allowed to circulate.  Then of course the issue of targeting industries, incentivizing four working industries does not work.  Let us resuscitate those industries that have collapsed.  We do not need to put Government money, let us charge people at the border.  People are importing, put an import tax; that import tax then goes to the industries, the local industries.  I am sure that will definitely work if we try all those proposals.”

Full contribution:

HON. GABBUZA: Thank you Mr. Speaker Sir.  I just have a few points that I want to emphasise – [HON. MEMBERS: Inaudible interjections.] –

THE TEMPORARY SPEAKER: Order Hon. Members, let us hear the Hon. Member in silence please.

HON. GABBUZA: Mr. Speaker Sir, I strongly believe that the more I listen to people talk about bond notes, the more I become more sceptical on whether it is going to solve the intended problems.  Bond notes are supposed to solve our cash crisis, but I do not think that only bond notes will be a solution.

Therefore, there are certain things that I think the Minister must consider.  Why do I have scepticism on bond notes being a solution to our cash problems?  Firstly, we are giving incentives of 5% to the chrome industry and the gold sector, which are the only things that are there in terms of exports.  If you look at a gold or chrome plant, even if you give them a 5% incentive, if the capacity of the processing plant is to produce 10 tonnes, no matter how much incentives you offer, that plant will not produce any excess, so that 5% will not result in extra production at all.  The plant is built to process a certain amount of commodity or mineral output per month or per day.

Mr. Speaker Sir, we are also incentivising things like tobacco, which is seasonal.  After we have reaped all our tobacco, what else will bring in foreign currency?  It is a seasonal crop and once it is reaped and sold, it is done.  Therefore, we will only earn foreign currency from tobacco over a certain period.

There are some people who believe that industry is improving, that is capacity utilisation, I was listening to the Minister of Industry and Commerce the other day.  Mr. Speaker Sir, my recollection is that, there is very little capacity utilisation that has improved, mainly because it was said that we are now producing cooking oil.  We are not producing cooking oil at all.  We are actually repackaging what is produced outside. If we talk of Delta Beverages, they are one of the major industries that remain in the country, but what are they doing?  Everything is coming from outside the country, including the bottle tops.  What is locally produced is only water.  Mr. Speaker Sir, as long as we just think about bond notes and incentives, it will not work.  I think the Minister’s focus must be to target industries and see how best we can improve our industries in terms of productivity.  Incentivising three companies that continue to produce will not work.  I wish the Hon. Minister would one day find time to move around Bulawayo, most of the industrial complexes, especially on a weekend, have been turned to church halls now.  There is very little activity going on.

Mr. Speaker Sir, what should we do?  My proposal is that, because we are literally importing everything in the kitchen, the Minister should consider targeting a few kitchen commodities that are used by women when they cook in the kitchen, because those are the major things that we are importing.  They should then introduce an import tax, even if it means 5%.  I was doing my computation and consulting with other economists.  Our import bill is about US$6 billion and if we tax 5% on US$6 billion, we get about US$300 000 and that money is channelled to local industries so that there is improvement in their capacity utilisation.  We will reopen those industries and we give them the modalities on how it can be done.

However, if we unveil US$300 000 per year, we will have more than 100 industries producing.  Once our own industries start producing, we will see them exporting.  We have good quality commodities like Mazoe which is not comparable to any product in the region.  However, we need to capacitate those industries so that they export and definitely, we will have more foreign currency.

Mr. Speaker Sir, the other thing is about ZISCO Steel.  I have always argued that if ZISCO Steel is resuscitated, we will solve almost half of our problems in the country.  This is because if ZISCO Steel starts operating, automatically Hwange Colliery will start moving and the National Railways of Zimbabwe will also start operating.  What will ZISCO Steel do?  If it starts operating, the fertilizer price of ammonium nitrate will definitely go down because ZISCO Steel subsidises Sable Chemicals through buying oxygen.  The mining industry will start operating, the cost of operations will be reduced because most of the dynamites used in the industries now are being imported from such countries as China, South Africa and others, which is moving foreign currency outside the country.  However, if ZISCO Steel was operational, explosives automatically follow because they are a by-product of the hydrogen produced at Sable Chemicals where Sable supports ZISCO Steel.  That will be helpful to us.

The other proposals that I want to make had been emphasised on by Hon. Nduna.  If you move around town right now looking for the only business places that are ticking – If you go to Mahommed Mussa, I suspect they could be cashing in US$100 000 or more as turnover  per day.  However, the question is, is that money circulating in our banks?  If we bank US$100 000 cash from Mahommed Mussa alone, will there be a cash shortage in the banks.  Go to the Gulf Complex along Chinhoyi Street and the shops along all those streets around the Gulf Complex, all the shops are Chinese shops and there is a hive of business.  Definitely, all the money being circulated there is not being channelled to the banks.  If they were being channelled to the banks, would we still be having queues of people waiting for money outside banks?

I think those are some of the things that the Minister must try to consider and see if we can possibly mop up all the money from people who are not keeping money in the banks so that it is allowed to circulate.  Then of course the issue of targeting industries, incentivizing four working industries does not work.  Let us resuscitate those industries that have collapsed.  We do not need to put Government money, let us charge people at the border.  People are importing, put an import tax; that import tax then goes to the industries, the local industries.  I am sure that will definitely work if we try all those proposals. Those are the few things that I thought I could put on the table.

IBTimes

Arts & Entertainment

Arts & Entertainment

Zanu PF bigwigs snub Chinx’s burial

24th June 2017 Staff Reporter 0

HARARE – The burial of the late liberation stalwart and musician Dick “Cde Chinx” Chingaira in Harare yesterday was most notable for the absence of senior Zanu PF and government officials. The 61-year-old Cde Chinx […]

3 Comments on How Zimbabwe can revive industry and end its cash crisis

  1. Tadacip 20 Online [url=http://cial40mg.com/buy-tadalafil-online.php]Buy Tadalafil Online[/url] Amoxicillin Allergic Rash Cialis Generic Chepest Po Box Delivery [url=http://kamagra-oral-jelly.kamagorder.com]Kamagra Oral Jelly[/url] Articulo 151 Priligy Dernieres Nouvelles [url=http://price-of-propecia.propecorder.com]Price Of Propecia[/url] Healthy Man Viagra Offer What Is Stranger Than Flagyl [url=http://newisotretinoin.com/accutane-online.php]Accutane Online[/url] ajanta Kamagra Oral Jelly Isotretinoin cod accepted website [url=http://sildenafil-generic.viapill.com]Sildenafil Generic[/url] Online Viagra Genuine Does Zithromax Affect Birth Control [url=http://how-to-get-kamagra.kamagpills.com]How To Get Kamagra[/url] Cheap Amoxicillin Online Does Keflex Cause Constipation In Dogs [url=http://brandcial.com/tadalafil-generic.php]Tadalafil Generic[/url] Propecia Online Bestellen Naltrexone [url=http://cialis-usa.tadalaf.com]Cialis Usa[/url] Comprar Priligy Original Pfizer Viagra Kaufen Ohne Rezept [url=http://leviusa.com]kanada levitra bestellen[/url] Propecia Cost Compare Composition Du Viagra Aux Herbes [url=http://viagra.cialpills.com/viagra-pills.php]Viagra Pills[/url] Can Amoxicillin Be Taken When Expired Trigliceridos Propecia [url=http://etrobax.com]buy cialis[/url] Furosemide 100 Mg Levitra Miglior Prezzo [url=http://genericvia.com/buy-viagra-online.php]Buy Viagra Online[/url] Cialis Niederlande Kaufen Low Cost Viagra 100mg Brand 5 Bucks [url=http://best-levitra-generic.levitab.com]Best Levitra Generic[/url] Amoxicillin And Vitamin Interactions Amoxicillin Antibiotic Inhibition Zones [url=http://viaprices.com]viagra online pharmacy[/url] Levitra With Dapoxetine Levitra Allemagne Priligy [url=http://cheap-cialis-no-rx.cialorder.com]Cheap Cialis No Rx[/url] Viagra Le Plus Puissant

  2. Filitra Professional [url=http://viasamples.com/viagra-online-fast.php]Viagra Online Fast[/url] Kamagra La Caixa Cytotec 200 РћСљg [url=http://cialcheap.com/buy-cialis-online-cheap.php]Buy Cialis Online Cheap[/url] Pvp Viagra Google. Viagra India [url=http://buy-viagra-online.canadianvia.com]Buy Viagra Online[/url] Cialis Generique Effets Secondaires Fausse Couche Sous Cytotec [url=http://cytotec.ccrpdc.com/buy-cheap-cytotec-site.php]Buy Cheap Cytotec Site[/url] Achat Lasix Peut Acheter Baclofene [url=http://lasix.ccrpdc.com/lasix-usa-blog.php]Lasix Usa Blog[/url] Le Viagra Pourquoi Doryx Without Rx Quick Shipping [url=http://viagra.cialpills.com/sildenafil-100mg.php]Sildenafil 100mg[/url] 1 Mg Finasteride Generic Propecia Professional Viagra Generic [url=http://brand-cialis-online.tadalaf.com]Brand Cialis Online[/url] Viagra Pagamento Alla Consegna Buy Cheap Strattera Online [url=http://kamagra-gel-online.kamagpills.com]Kamagra Gel Online[/url] Citalopram Tablets Online

  3. Online Zentel Pinworms In Germany Discount Cheapeast [url=http://leviplus.com/levitra-or-viagra.php]Levitra Or Viagra[/url] Real Levitra Effets Secondaires Cialis Prostate [url=http://cheapcial.com/cialis-online-prices.php]Cialis Online Prices[/url] Zestoretic Aldactone Without A Prescription [url=http://priligy-online-usa.priliorder.com]Priligy Online Usa[/url] Dog Cephalexin Reactions Precio Del Levitra [url=http://staminamen.com/cialis-online-pharmacy.php]Cialis Online Pharmacy[/url] Comprar Viagra Femenina Paginas Seguras Viagra 100 Teilen [url=http://cheapcial.com/purchase-cialis.php]Purchase Cialis[/url] Cheap Captopril 50 Mg Paypal Isotretinoin For Sale Internet [url=http://cialusa.com]viagra cialis[/url] Order Propecia Online Cheap Best Canadian Drugstore Online [url=http://levitra.purchasevia.com/map.php]Buy Brand Levitra[/url] Costo Levitra 10 Mg In Farmacia Price Of 100mg Viagra [url=http://kamagra-soft-tablets.kamagpills.com]Kamagra Soft Tablets[/url] Viagra Nl Apotheke Cheap Kamagra Tablets Uk [url=http://dprixe.com]best prices for legal levitra[/url] Zithromax Second Dose Tab Macrobid No Prescription Needed [url=http://pill-price-levitra.leviorder.com]Pill price levitra[/url] Cialis Online Canada Paypal Zithromax Affect Birth Control [url=http://levipills.com/vardenafil-levitra.php]Vardenafil Levitra[/url] Meclizine Pharm [url=http://cialcost.com/brand-cialis.php]Brand Cialis[/url] Enalapril Matea For Sale.Uk Propecia Online India [url=http://order-viagra-on-line.viapill.com]Order Viagra On Line[/url] Kamagra Billig Online Viagra Cialis Levitra Effetti Collaterali [url=http://levitra-price-check.leviorder.com]Levitra Price Check[/url] Cialis Resultats Viamedic. Com [url=http://viasamples.com/cheap-viagra-samples.php]Cheap Viagra Samples[/url] Comprar Cialis Online Paypal Can I Purchase Fedex Provera Delivered On Saturday [url=http://viacheap.com]viagra[/url] Levitra Tariffe In Farmacia Acheter Cialis 5 Mg Comprime Pellicule Boite De 28 [url=http://staminamen.com/cialis-tadalafil.php]Cialis Tadalafil[/url] Cvs Propecia Price Fedex Worldwide Dutasteride 0.5mg Medication Real Low Price Virginia [url=http://leviusa.com]how to buy levitra in usa[/url] L Thyroxin Kaufen Buy Amoxicillin Antibiotics Online Canada [url=http://buying-cialis-online.ordercial.com]Buying Cialis Online[/url] Drugstore Hong Kong Amoxicillin Trihydrate Picture [url=http://newisotretinoin.com]Buy Accutane[/url] Articulo 52 What Are Kamagra Tablets [url=http://order-viagra-online.viaforsale.com]Order Viagra Online[/url] On Line Pharmacys In India Under Eye [url=http://order-viagra-pills.viasample.com]Order Viagra Pills[/url] Cialis Pills Misoprostol 200 Mcg Tab [url=http://brandcial.com/need-to-order-cialis.php]Need To Order Cialis[/url] Levitra Generico Compra Finasteride Vs Minoxidil Propecia [url=http://cialbuy.com]generic cialis[/url] Protocole Baclofene Ameisen Cialis Medicament Achat [url=http://cialusa.com]cialis[/url] Cialis Da Banco Generique Amoxicillin Sans Prescrire Pilule Contraceptive [url=http://cheapest-cialis-online.BuyCial.com]Cheapest Cialis Online[/url] Tablette Levitra Responses to consultation on the draft order. [url=http://quickloan-24.com]online payday loans[/url] Dorchester Group Personal Loan Secured.Once approved it should take only a few days at most to get funded. Representative.How To Buy Colchicine Online With No Rx [url=http://kamagra-online-pharmacy.kamagpills.com]Kamagra Online Pharmacy[/url] Cetazolin And Keflex Generic Topiramate Online 200 [url=http://buy-cheap-kamagra-site.kamagpills.com]Buy Cheap Kamagra Site[/url] Penecillin And Amoxicillin Are Foro Comprar Kamagra [url=http://shop-cialis-online.cial5mg.com]Shop Cialis Online[/url] Amoxicillin 33436 Zithromax Z Pak Generic [url=http://viacheap.com]buy viagra[/url] Buy Kamagra India Where To Order Ciprofloxacin [url=http://how-to-get-viagra.canadianvia.com]How To Get Viagra[/url] Over The Counter Amoxicillin Suhagra 100 Free Shipping [url=http://cialusa.com]cialis[/url] Acquisto Cialis Tadalafil Generic Cialis 5 Mg [url=http://cialis-generic.cial5mg.com]Cialis Generic[/url] Cialis Kamagra Kaufen Propecia Sas [url=http://bpdrugs.com/prices-cialis.php]Prices Cialis[/url] Marcas De Propecia Azithromycin Purchase Over Counter [url=http://levitra.purchasevia.com/cheap-levitra.php]Cheap Levitra[/url] Indian Pharmacies That Accept Paypal Propecia Online Australia [url=http://cheapcial.com/buy-generic-cialis-online.php]Buy Generic Cialis Online[/url] Sildenafil Generique France Amoxicillin Diaper Rash [url=http://propecia.cialpills.com/generic-propecia.php]Generic Propecia[/url] Amoxicillin And Chlamydia The Cheapest Price Generic Viagra [url=http://priligy-generic.priliorder.com]Priligy Generic[/url] Amoxicillin And Vitamin And Headache Order Viagra Online Female [url=http://cheapcial.com/best-cialis-online.php]Best Cialis Online[/url] Amoxil Cat Days

Leave a Reply

Your email address will not be published.


*