Deindustrialisation of Zimbabwe : causes, implications, and remedies

Abstract: The study seeks to investigate the causes, implications, and proffer remedies to the deindustrialisation of Zimbabwe covering the period 2000 to 2018. Zimbabwe was once the breadbasket of Southern Africa, with one of the most advanced and diversified manufacturing sectors in the southern region. However, this has all turned to history as most companies have closed shop, some are operating way below their capacity utilisation, and others have relocated. Several constraining factors are being attributed to the deindustrialisation of Zimbabwe which are globalisation, obsolete equipment, access to finance, the influx of imports, erratic power supply, high cost of utilities, foreign currency shortages, dollarisation, scarcity and high cost of raw materials, and government neglect. Various recommendations have been suggested that might help resuscitate the ailing industries in Zimbabwe such as ensuring the availability and affordability of funding to distressed and marginalised firms to bail them out of their distress and closure. There is also a need for massive retooling of aged equipment and to adapt to new and cheaper production methods to beat competition from foreign competitors who have flooded the market. There is also appreciation now that industrialisation through the use of industrial policy is vital, especially in developing countries so that they are able to once again enter the competitive arena...M.Phil. (Industrial Policy