Illegal sanctions: Byo feels the pinch

THE illegal sanctions imposed on Zimbabwe by the Western countries has contributed to the collapse of industries in Bulawayo resulting in unemployment in the city.

Once considered the country’s industrial hub with flourishing factories, Bulawayo is today a pale shadow of its former self.

At the turn of the millennium, the manufacturing sector in the city suffered the most due to economic sanctions, which stifled its ability to effectively operate.

Productivity nose-dived as companies failed to retool due to their inability to access cheap financing. The country’s successful land reform programme implemented in 2000 triggered the imposition of economic sanctions against Zimbabwe, mainly in the form of the so-called Zimbabwe Democracy and Economic Recovery Act (Zdera) in America.

This led to the closure of industries as investors did not want to associate themselves with a country that was under sanctions. A lot of people lost their jobs.

A study done by the University of Zimbabwe says the country lost about US$4,8 billion worth of revenue in the manufac tur ing sector in 2010 and US$2,1 billion in 2015 due to Western sanctions.

African leaders, in solidarity with Zimbabwe, however, joined hands in lobbying for the unconditional removal of the punitive measures saying these are hurting the entire South African Development Community (Sadc) region.

The Sadc has maintained that the economic sanctions imposed on Zimbabwe are hurting the entire southern African region and hence the economic bloc on October 25, 2019, embarked on a campaign to speak with one voice against sanctions on Zimbabwe.

October 25 has been set aside as a solidarity day against illegal sanctions imposed on Zimbabwe and all Sadc countries have agreed to conduct various activities in their respective countries on that day to resoundingly call for the immediate removal of the sanctions.

In separate interviews, residents shared their sentiments on how illegal sanctions have affected their livelihoods following the collapse of the city’s industries.

Mrs Sithembiso Chinhara (67), formerly employed at Cotton Printers, said the closure of the giant fi rm impacted negatively on her family.

“When we heard of sanctions being imposed on Zimbabwe, we never thought it could affect us as workers. We were shocked when we started skipping months in terms of salaries and the next thing, we were told that the company was struggling in terms of business before it ultimately closed,” she said.

Mrs Chinhara said after the closure of the company, she had to look for alternative means of sending her children to school.

She said some of her co-workers developed stress-related illnesses and died.

“I had four children when the industry was closed. I remember the day we were told it was going to be closed and the packages were still being prepared. I felt dismayed and I had no idea how I was going to support my children,” said Mrs Chinhara.

She had to start vending as a way of getting money to send her children to school.

“If it had not been for the sanctions that were imposed, I am sure we would have at least got our packages. We are still hoping to get our packages till today and I believe that once the sanctions are removed industries in Bulawayo will reopen with more jobs being created,” said Mrs Chinhara.

An ex-worker at the Cold Storage Company who preferred to be identified as Mr Dube said he was forced to sell all his livestock to raise money for school fees following the closure of their company.

“I could not believe it when we were told the company was closing 22 years back. I remember being confused and asking myself how I would support my children”, he said.

He said the standards of living went down.

“Selling my livestock was the most difficult decision I ever made, but there was no other option since I could not generate income. I am glad that under the Second Republic, CSC has been revived despite the challenges they are facing,” Mr Dube.

Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland regional chairperson Mr Golden Muhoni, said the demise of Zimbabwean industries in the past years is closely linked to sanctions.

“Sanctions and the collapse of industries in Bulawayo are interconnected. We are a global economy where financiers and recipients of the funds work in harmony. When you are under sanctions what it means is that you are no longer able to access cheap funding from global institutions such as World Bank and IMF,” he said.

Mr Muhoni said sanctions also affected a lot of industries which used to rely on European markets.

“Some of our products have been going to foreign markets via backdoor and an example is our diamonds which we were not able to sell on the open market because of sanctions. These are some of negative effects of sanctions because if you are not able to go to the open market, we will do so via third parties,” he said.

“Sanctions are not good for the industry. Look, Bulawayo used to be the country’s industrial hub and a lot of industries are no longer functioning at full capacity with a bulk of them having been turned into churches.” — @flora_sibanda