(COMESA) and has over the years showed commitment of purpose to regional integration at both the regional and continental level. Zimbabwe is also a signatory of the Abuja Treaty establishng the African Economic Community.
108. Zimbabwe has taken a proactive posture in the promotion of investment and
exports at the level of the State. In addition, there are institutions for the promotionof exports and investment, credit and market support policies. Indeed, Zimbabwe's Trade Promotion Organization (ZimTrade), Zimbabwe Investment Centre (ZIC) and
several development banks promote exports, investment and credit disbursement tothe enterprise sector. Discrepancies still exist especially in the availability and accessibility of investment and credit facilities to small- and medium-scale enterprises.
109. In the regional context, Zimbabwe's leading trading partner is South Africa, followed by SADC and PTA. In 1992, the country's exports to SADC, PTA and South Africa were 16.56 per cent, 13.38 per cent and 13.75 per cent respectively, compared with total regional exports of 32.49 per cent (annex 2A). The exports from Zimbabwe to the rest of the world amounted to 67.51 per cent. Figures for 1993 are only up to May, but the trend is still similar to that of 1992 (annex 2B). Imports from the region amounted to 28.08 per cent and 71.92 per cent from the rest of the world.
110. In addition, in the 1980s the government introduced new incentives for
exporters. The Export Incentive Scheme, where exporters were paid 9 per cent of fob
value of exports (in Zimbabwe currency), was introduced in the early 1980s. This was
followed in 1983 by the Export Revolving Fund (ERF), which allowed exporters to
have access in advance to forex needed to purchase the imported inputs required to
manufacture goods for specific export orders (the ERF was scrapped in 1993) but had
been targeted at the manufacturing sector; the Export Promotion Programme (EPP),
ECA/MRAG/95/10/MR Page 49 introduced subsequently, catered for the mining and agricultural sectors. The Industrial Bonus Scheme allowed for a supplementary foreign currency allocation to be made on the basis of incremental exports achieved.
111. The whole subject of the successful transformation of a country's natural endowment into industrial products depends on the historical understanding of how the static comparative advantage was or is consistently turned into dynamic comparative advantage. In the Zimbabwean case, at any given time the sum of static comparative advantage consists of given factors of production, i.e. physical capital, labour, human resources, land and its natural resources. In the three distinctive historical periods, these have been undergoing transformation which can be analyzed in the context of dynamic comparative advantage, i.e. associated with upgrading of skills, innovative capabilities, entry of new firms, the emergence of technological systems or networks where both Government and enterprise act to support production and know-how.
112. The Unilateral Declaration of Independence might ironically, have contributed to the participation of blacks in the manufacturing sectors of several key industries, due to the mass exodus of whites, fleeing from the liberation war. Semi- and high-skilled positions were at the time occupied by blacks while the whites moved up to managerial positions.
113. To redress the situation created by the UDI period, the Government of Zimbabwe embarked on a human-resource development programme to close the gap in technical skills between the minority whites and the majority blacks. The main plank of these policies was the massive expansion in the educational system at the primary, secondary and higher education level. Furthermore, six agricultural training institutes and 14 youth-training centres were established. The apprenticeship system was opened up to black admission, through the direct control of Government. In-service training by firms was promoted through the Zimbabwe Manpower Development Fund
(ZIMDEF).
114. In 1990 there were 1520 secondary schools in the country, up from 200 in 1980. Enrolment figures stood at 708,100 students in 1990 as opposed to 74,300 in 1980. About 33 per cent of the enrolled students were women during the two periods referred to above. The rate of success at the ordinary and advanced examinations has remained relatively constant, averaging over 50 per cent from 1980 to 1989. Unfortunately, separate statistics are not available for vocational secondary schools in Zimbabwe.
115. The Zimbabwe private sector especially the large transnational corporations have instituted an elaborate programme for training its employees. The case of Bindura Nickel Corporation Limited, a subsidiary of the Anglo-American Group of companies with 80 per cent black managers, provides insights of human-resource development of these companies. The large corporations recognize the fact that a large percent of the work force in Zimbabwe is black and that it is not good business to depend on
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imported labour or to hire unqualified black Zimbabweans.
116. This recognition has led to an elaborate in-house human development programme. Working closely with the School of Mines in the University of Zimbabwe, a programme is developed that meets the needs of the company and the university.
College-bound high school students are screened by the company for scholarship awards. The identified students are attached to the company for summer jobs, and eventually some of them are recruited upon graduation. Thereafter, there are two years of pupilage where the new recruits are exposed to the various branches and operations of the company. This period provides an opportunity for both the company and employee to evaluate each other. The better employees are identified and appropriately rewarded by higher responsibilities and faster advancement possibilities in the company.
117. The Zimbabwe National Chamber of Commerce (ZNCC) recognized the necessity of inculcating the technological and entrepreneurial culture early on in the lives of young secondary school students so as to avoid the problem of training retrenchers.
The concept of Junior Chambers of Commerce was introduced, and in early 1995 there were 250 chapters in the country. These young students voluntarily participate in the programme which trains them to identify where their interest lie and to develop a keen sense of business at a very early age. The programme is sponsored by private-sector enterprises
118. Zimbabwe has several financial institutions that support the private and public sector, but support to the small-scale indigenous industries is much less. The main mechanisms for financing manufacturing are commercial banks such as ANZ Grindlays, Backlays Bank, Commercial Bank, Standard Chartered Bank, and Zimbabwe Banking Corporation; finance houses; the Credit Guarantee Company and Development Banks. As part of the Economic Reform Programme, more banks will be allowed to operate in Zimbabwe and this is likely to open up competition. Government controls two of the banks.
B. Recommendations
119. It has been widely recognized that African countries should pay more attention in the rational and efficient transformation of their local abundant natural resources into semi- and finished goods right here in Africa. This recognition is brought about by the fact that the demand for imported goods is increasing and even more fundamentally, Africa must be able to feed itself. Furthermore, vaiue added to local materials provides badly needed jobs and foreign exchange.
120. To bring about the rapid transformation of local raw materials, the whole system of production should be rendered more functional, by adopting policies that promote environmentally clean production, the necessary infrastructure to transport the raw materials to the industrial sites, the organization of work and activities within the manufacturing setting through the deliberate development of appropriate skills to
ECA/MRAG/95/10/MR Page 51 operate the machines. Also important are identified of sources of financing operations and an efficient distribution system of the finished goods within and outside of the
various countries.
121. While industrialization is an imperative for Africa's economic development, it is necessary while implementing the second Industrial Development Decade for Africa, that there should be an awareness of the dangers to the environment arising from haphazard and unplanned industrial expansion. Chemical and metallurgical industries are generators of industrial pollution. Forest-based industries could create deforestation and soil erosion. Food- processing industries have to take great care about the levels of toxicity in food processing chemicals. Fisheries can be adversely
affected by the discharge of effluents into river waters.26 It must however be pointed
out that as result of the weak technological base and the dysfunctional state that characterizes African industry, environmental management has been relegated to the background. Emphasis is on the survival of the industry per say and clean methods of production can wait. It is difficult to explain to a timber logger that he is destroying the environment when he sees that tree as his only source of revenue, or to expect the rural dweller not to burn wood that can produce charcoal that will feed the family.122. Vigilance, education, rewards and stringent regulations must be used by the various countries to check the destruction of Africa, since a clean environment is perhaps the only real legacy that the continent can hand down to future generations.
123. African industries should aim at producing more with less on a self-reliant and self-sustaining basis to meet the growing needs of our increasing populations (e.g.
agro-related industries). To become self-reliant will require special support to industries and technologies that better serve local needs by making optimum use of local resources, local personnel and schemes. To become self-sustaining will require choosing processes and technologies that have less adverse impacts on our environment.
124. This calls for an increased use of local factor inputs in the manufacturing sector and especially, the strengthening of linkages between various agricultural activities and industry. To this effect, the development of small-scale industries especially the agro-based industries, has been identified as an important component in the development of these linkages.
125. The role of the private sector in the development of the industrial sector has been recognized and African decision-makers have to take concrete decisions to contribute to the creation of an enabling environment to facilitate more active
26 The Second Industrial Development Decade for Africa (1992-2003) : Self-sustained Development through Industrialization, is Africa's framework document for industrialization into the
Twenty-First Century.
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participation of private entrepreneurs in the process of industrialization, especially with respect to small- and medium-scale industries.