Support industry in ascendancy

THE past few months have witnessed developments in the economy which, if executed diligently, could help change Zimbabwe’s fortunes.

The anticipated 3,7 percent economic growth now appears more realistic and achievable.

The latest being the resuscitation of the Willowvale Motor Industries as reported in our paper last Tuesday (The Herald March 28). This follows a partnership with a Chinese firm, Beijing Automobile International Corporation (BAIC) and Astol Motors.

WMI is another giant that has been sleeping for too long. It really needed a partner in the mound of BAIC to flush out the anaesthetic of challenges that put it to sleep a few years ago. It succumbed to serious competition from second hand vehicle imports and other viability challenges.

WMI, formerly Willowvale Mazda Motor industries, was a force to reckon with during its days as it produced high quality vehicles that Government, the corporate sector and individuals alike bought in their numbers before more affordable options flooded the market.

However, prospects of improved business under the new partnership are high but we must hasten to say that it will certainly not be a stroll in the park. But it is one project worth trying as the economy seeks to embark on a growth trajectory once more.

More than 5 000 jobs will be created thereby ameliorating our dire unemployment figures. Government’s coffers are set to receive a considerable boost with millions of dollars in projected tax revenue.

More than 3 000 vehicles are out to be manufactured inside three years for both local and international market. Downstream industries are set to benefit from this project.

It would be inane to argue against a deal of this magnitude, consummated in pursuance of the deals signed by President Mugabe and the Chinese President Xi Jinping in 2014.

The pomp and fanfare at the launch ceremony last week must certainly be followed with such energy and aggression in the production and marketing of the vehicles. Production of high quality vehicles that meet the demands of the local and international market is a fact that cannot even be debated. It’s a given.

Consumers locally will need to support this initiative by choosing to buy local for the greater good of the economy even if it means compromising a little on taste.

WMI will need to work with banks to avail affordable facilities for corporates and individuals to purchase the vehicles. Of course the target must largely be corporates.

The words by Industrial Development Corporation general manager Mr Mike Ndudzo were instructive.

“My plea is that it be enforced to support this re-opening. This is a high volume low margin business we do not just want to re-open it, stop and start, we want to sustain it as part of the revival of the downstream value chains.

“With your support our key customers here, the fleet owners, Government institutions and also in particular the municipalities we will keep this initiative going.

“Development comes with some sacrifice it might mean you choosing a locally produced car, which is not as luxurious than the imported one, but if the value or benefit of your action is to ensure that Zimbabwe, which was the only country outside South Africa with an integrated assembly plant, goes back and even exceeds what it was before I think you will agree with me that it would be a worthwhile choice,” he said.

A stakeholder in the motor industry believes that WMI is currently at crossroads.

“WMI is exactly in the same position it was in 1989 where various car manufacturers that had contracted it to assemble their vehicles locally were pulling out because of shrinking sales resulting in it scaling down production with the situation only being rescued by the coming in of Mazda.

“There is need for a strong demonstration of interest in locally assembled vehicle through increased sales to justify the re-opening of WMI and to attract more contracts for the vehicle assembly plant,” he said.

Industry and Commerce Minister Dr Mike Bimha was reassuring when he spoke of a motor vehicle policy that would support the WMI project and other car assemblers.

“The policy framework is expected to revive and give a new lease of life to the motor industry sector in Zimbabwe. It is also expected to increase capacity utilisation of car assemblers from the current levels of below 10 percent to the year 2000 levels of around 70 percent.

“The policy shall facilitate development of the automotive industry to become a significant contributor to GDP, exports and Government revenues. The policy framework is further envisaged to shield local companies from unfair competition emanating from grey imports,” he said.

This is one sector of the economy that has potential to transform Zimbabwe’s fortunes and we will always argue that an economy such as ours as any indeed must optionally leverage on multiple sectors and approaches.

We cannot focus on one sector alone. The global economy is subject to volatility in commodity prices as it is to the vagaries and vicissitudes of factors beyond our control.

Concerted efforts should be applied to the myriad of sectors that is, mining, agriculture, manufacturing, tourism, service industries etc.

A national economy has many layers of complexities as opposed to a business entity. A simple and latest example emanates from our northern neighbours Zambia. That country’s exclusive reliance on copper almost decimated an entire economy a few years ago.

I do not know of any economy, more so one on a sustainable growth trajectory that is reliant one sector. We will support all interventions and programmed designed to buttress agricultural production and measures meant to augment mining, industry tourism output.

That said the euphoria of the Willowvale deal should thus not obscure realities.

The quality and pricing of the vehicles must be competitive to gain market confidence.

Most companies and entities are recalibrating in keeping with economic realities on the ground.

Costs are always a factor in business and this has become more heightened in this transacting environment. Yet this prime consideration should not preclude guarantees or assurances quality.

The taste of the pudding is always in the eating and their products will be subjected to the unrelenting scrutiny of the market.

In any case, it would be vacuous to compel any entity parastatal or not, to source vehicles which are expensive, costly to maintain and downright unreliable from them as this it would manifestly self-destructive.

There are perceptions that foreign investors forge partnerships that are skewed in their favour as the expense of locals we trust that the structure of this partnership is genuinely symbolic, for none of us are in this for charity.

Any sustainable partnerships are anchored on mutual benefits.

Industry or manufacturing is inestimably important. How else can we talk about value-addition without it? Agriculture, mining among others are reliant upon it.

It is an invaluable end integral part of the value chain and we need to sell more of such initiatives.

We applaud the urgency with which the ministry of Industry & Commerce is practically addressing issues that fall under its purview as exemplified by Minister Bimha.

We have often lambasted investigations committees, commissions and general strategies that yield nothing on the ground.

Only robust execution yield results. We urge such demonstrable application to be replicated by all stakeholders in the economy.

No single individual or entity can do it alone. We are under no illusions as to the enormity of the challenges before us.

We contend that we borrow concept from Results Based Management, where resources are allocated for a given task to a responsible and accountable person(s) and periodic evaluation is done.

Capacitation responsibility, accountability, performance, results are key and interventions upon evaluation are central to operations. There is no room for passing the buck, inaction or lack of direction or focus.

Indeed the ministry of Industry & Commerce has done well and so have other players. There is still more to be done, through.

We implore all sectors to step up to the plate as we seize our destiny. In God I trust. ◆