Business Correspondent
HARARE – In an unprecedented move, Zimbabwe’s major industries have publicly appealed for immediate government intervention, warning that without decisive legislative action, local businesses face inevitable collapse due to foreign dominance and substandard imports.
The call was made during a high-level meeting with Industry and Commerce Minister, Hon. Mangaliso Ndhlovu, where business leaders urged the government to adopt a model similar to Tanzania’s Statutory Instrument (SI) 407A/2025, which reserves 15 economic sectors exclusively for citizens.
A detailed position paper from the Zimbabwe National Chamber of Commerce (ZNCC) highlighted serious concerns over foreign encroachment into sectors with low entry barriers that are legally reserved for locals. The document called for stronger enforcement of the Indigenisation and Economic Empowerment Act, the introduction of QR-coded local content insignia, and tighter alignment of public procurement with local content policies.
The paper also warned that the dumping of cheap cement and steel, coupled with sluggish permit processes, is crippling domestic producers.
“BMOs called for an indaba on delayed contractor payments,” the report stated, referencing a Contractors Bill that has been under parliamentary review since 2023.
Economists supported the industry’s concerns, noting the structural threats to the local economy. Economist Vince Musewe stated,
“Cheap imports displace local production. With high local production costs, businesses cannot achieve desired volumes of sales to be profitable. Cheap imports therefore threaten local production viability and local jobs.”
Columnist Gloria Ndoro-Mkombachoto observed that foreign dominance is a growing continental trend, noting that,
“Countries such as Zambia, Angola, Ethiopia, Nigeria, and Zimbabwe have seen Chinese companies dominating, often leveraging state support to gain competitive advantage. However, this dominance has disadvantaged local entrepreneurs and communities.”
Stevenson Dhlamini, an economics lecturer at the National University of Science and Technology, described the concerns as central to Zimbabwe’s development model, saying,
“The concerns of local constructors and manufacturers are not mere protectionist rhetoric; they signal a fundamental tension in the country’s growth model. Their grievances are entirely valid and reflect what we call the creation of an ‘enclave economy’.”
Minister Ndhlovu acknowledged the sector’s challenges, citing high capital costs and confirming that a statutory instrument on reserved sectors has been submitted to the Attorney-General’s Office. He also commended President Emmerson Mnangagwa’s commitment to addressing competitiveness issues.
Drawing input from six leading business organizations, the ZNCC called for a home-grown “Marshall Plan” featuring coordinated government-backed investment, deregulation, tax reform, reliable energy supply, and incentives to formalize thousands of informal enterprises.
The report concluded with a stark warning that without urgent measures, more firms would collapse, jobs would be lost, and supply chains would unravel, emphasizing that only bold, coordinated government intervention can prevent a full-scale corporate meltdown.
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