ZANU PF, the ruling party in Zimbabwe, has been at the helm of the country’s politics for decades. However, their prolonged stay in power has come at a significant cost to the nation’s industrial sector and overall economic stability. This article delves into the detrimental effects of ZANU PF’s policies and actions, which have led to deindustrialization and economic decline in Zimbabwe.
Deindustrialization Takes Root
The process of deindustrialization in Zimbabwe began in earnest with the implementation of the Economic Structural Adjustment Program (ESAP). While ESAP itself was an attempt to address economic issues, it was the underlying problems it aimed to remedy that have caused extensive damage to the country’s industrial base. Underlying this problem was ZANU PF’s obsession with establishing a one-party state, which led to a distortion of the nation’s economic priorities.
ZANU PF’s pursuit of socialism as an ideology after gaining independence was misguided and rooted in geopolitical pressures. Support from communist Russia and socialist China during the pre-independence era led to a post-independence alignment with socialist ideals. This decision was not driven by sound economic reasoning but by the desire for unchecked power and a flawed understanding of Zimbabwe’s role in global politics.
The Role of Corruption
Corruption has been a pervasive issue in Zimbabwe since the 1980s. Numerous scandals, such as the Paweni scandal (1982), the National Railways Housing Scandal (1986), and the Willowgate Scandal (1988), are just a few examples of corrupt practices within ZANU PF. This corruption became so deeply entrenched that it evolved into a structural and institutional problem, ultimately resulting in state capture by private interests.
Corruption has played a significant role in deindustrialization. Funds that should have been invested in retooling and modernizing industries were instead siphoned off for personal gain. This left Zimbabwean companies unable to compete globally with modernized and efficient industries from countries like China. As a result, they lost business both in the domestic and international markets.
The Impact on Foreign Investors
ZANU PF’s policies also deter foreign investors from participating in the resuscitation of looted industries. Investors are often required to offer various perks to ZANU PF, including allowing party elites to sit on company boards. This interference sabotages industrial growth and prospects for revitalization.
The period between 2013 and 2014 saw the closure of over 4,610 companies when ZANU PF abandoned the Government of National Unity. This reversal of progress and re-investments secured during the previous administration exacerbated the deindustrialization process.
Chinese Companies and Their Role
ZANU PF’s preference for Chinese companies has further compounded the issue. Chinese companies often operate without paying taxes and skirt labor and environmental regulations, creating an uneven playing field for local businesses. These Chinese firms also mistreat their employees, leading to protests and labor disputes.
Local companies find it nearly impossible to compete with Chinese counterparts that enjoy these unfair advantages. Consequently, deindustrialization, business closures, and emigration of entrepreneurs like Strive Masiiwa have become common outcomes.
In conclusion, ZANU PF’s prolonged stay in power, patronage system, corruption, and preference for Chinese companies have been detrimental to Zimbabwe’s industrial sector. Deindustrialization has caused widespread unemployment, food insecurity, inflation, and a brain drain. Addressing these issues requires a change in leadership and policies, as well as a commitment to rebuilding and modernizing the nation’s industries. Only then can Zimbabwe hope to reverse the effects of deindustrialization and regain its economic footing.