Industry calls for dialogue

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ZIMBABWE’S deteriorating economic situation and rising labour unrests could be improved through dialogue between government, business and labour, a leading industrialist has said.
This was after it had emerged that last week’s stay away, which left at least 12 people dead and more than 170 injured, could have cost the country as much as a quarter of a billion in lost production — apart from the damage to property which has been estimated at “millions of dollars”.
Sifelani Jabangwe, the Confederation of Zimbabwe Industries (CZI) president, said there’s an urgent need for relevant parties to engage in a tripartite negotiating forum.
“We feel that such a forum will improve dialogue and insure that some of the incidences that we witnessed this week could be avoided. As CZI we acknowledge the right to peaceful protest as described in the constitution and we denounce violence that leads to loss of lives and property,” he said.
“The property that was destroyed during the protests was actually investment, which the country needs more right now. But for us to increase investment, we need assurance from all parties that investment will be secure,” he said.
President Emmerson Mnangagwa, who skipped the World Economic Forum in Davos, on Tuesday also called for a “national dialogue” among all political parties as well as religious and civic leaders.
However, Jabangwe said there is need to take bold steps to address the current economic challenges.
“In doing so, there is need for consultations. The survey remains a major way for providing policy direction for the manufacturing sector, hence CZI continues to carry out the survey annually,” he said.
The recent protests were incited by a 140 percent increase in fuel prices, which was announced by Mnangagwa on January 12.
Since November, 2017 when Mnangagwa took over from Robert Mugabe, his administration has implemented a number of rapid “economic reforms”, most of which it claims to have been in consultation with business.
The reforms have however been received poorly by the general public, which seems to have been left out of economic policy direction discussions.
Commentators say the recent protests were the public’s show of discontentment to government’s apparent exclusive agendas.
Still, the “new dispensation” has persistently announced its intentions for inclusivity.
Its Transitional Stabilisation Programme is said to be focused on attaining strong, sustainable and “shared” growth.
Meanwhile, the confederation says “if there is no drastic change in policy direction, foreign currency shortages will persist and the 1:1 exchange rate is affecting availability of foreign currency”.
“There is need for a foreign exchange trading platform so that foreign currency is traded at a fair value. This will enable product availability, price stability and business viability,” Tafadzwa Bandama, CZI’s chief economist.
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