Strengthening Zimbabwe's value chain justice to attain sustainable development

Zawya

2 days ago

The Southern African nation has 90% of the economy being informal, with the informal economy primarily focusing on retail and trading. Citizens are shying away from both the communal and informal productive sectors of the economy where primary producers are constantly shortchanged, and the true value of their labor and resources is channeled elsewhere in the global value chain. This article explores the urgent need of strengthening value chain justice in Zimbabwe to unlock its full productive potential, safeguard its environment, and uplift her people from poverty.
The Erosion of Primary Production: A Crisis of Unfair Returns
Zimbabwe's economic woes are acutely felt at the grassroots level. Once a powerhouse in cotton production, regions like Gokwe have witnessed a drastic decline in output. Peasant farmers, once reliant on cotton for their livelihoods, have abandoned the crop, citing unviable returns. Similarly, small-scale tobacco farmers across the country, who initially embraced the crop with optimism, have since stopped, lamenting that their incomes simply do not cover their input costs. Even maize farmers, the backbone of the nation's food security, voice frustration over government-gazetted prices that fall far below their production expenses.
This disheartening trend extends beyond agriculture. In Marange, after years of intensive diamond mining, the local community is left with little more than open shafts, with no discernible development to show for the exploitation of their precious resources. The same narrative echoes along Zimbabwe's Great Dyke, where communities living amidst extensive mining operations see open shafts but no tangible improvements in their quality of life.
The Unemployment Conundrum: A Symptom of Disincentivized Labor.
Zimbabwe currently faces an unemployment rate exceeding 90%, a staggering figure that contradicts the vast opportunities available in its primary industries of farming and mining. Yet, the prevailing income structures in these sectors actively discourage participation. Citizens, rather than engaging in productive labor, opt to migrate to urban areas, swelling the ranks of the informal economy. Zimbabwe, in essence, has become 'one big retail shop with very limited production,' as aptly described by Dr. Kanyenze and other scholars who have extensively documented the dualized economic structure of the Zimbabwean economy. The government's continued focus and investment in a narrow, formal economy, a relic of the colonial era, has systematically excluded the informal and communal economies, undermining the 'leave no one behind' mantra.
Case Study: The Zimbabwean Farm Labor Exodus (Pre-Land Reform)
At the peak of commercial farming in Zimbabwe, a striking phenomenon was observed: white commercial farmers often complained about a perceived unwillingness of Zimbabweans to work on farms. Consequently, a significant portion of the farm labor force comprised foreigners, primarily from Malawi. The truth, however, was far more nuanced. Local Zimbabweans largely boycotted the degrading working conditions and paltry wages offered on these farms. This historical precedent serves as a stark reminder that even when opportunities exist, exploitative labor practices and unrewarding returns will inevitably drive away potential workers.
Reversing the Trend: The Imperative of Value Chain Justice
To meaningfully address the crisis of unemployment and stimulate economic growth, it is paramount that incomes in the primary industries become genuinely motivating. The government, unfortunately, has been a significant contributor to discouraging production by short-changing farmers. Imagine the transformative impact if primary production in rural areas experienced a boom. Household incomes would rise, disposable incomes would increase, and the rural economy would flourish. This would, in turn, reverse the debilitating rural-urban migration, significantly improving the quality of life for countless citizens.
Currently, the primary beneficiaries of Zimbabwe's productive efforts are those at the apex of the global value chain, often foreign entities who add value to the bulk raw materials shipped from the Global South. This extractive model perpetuates a cycle of dependency and underdevelopment.
A Glimmer of Hope from the Global North: Lessons in Ethical Sourcing
Encouragingly, countries at the center of global capitalism, particularly in the Global North, are increasingly recognizing the importance of value chain justice. Nations like the United Kingdom, Netherlands, Germany, and the entire European Union are enacting legislation and policies that compel corporations to uphold human rights and protect the environment throughout their supply chains. This progressive shift signals a growing global awareness of the ethical dimensions of trade and production.
Case Study: The German Supply Chain Due Diligence Act (2023)
Germany's Supply Chain Due Diligence Act, which came into full effect in 2023, is a landmark example. It mandates that large German companies identify, assess, and address human rights and environmental risks in their supply chains, both in their own operations and at their direct and indirect suppliers. This legislation demonstrates a commitment to holding corporations accountable for their global impact, forcing them to consider the welfare of workers and the environment in distant lands.
Zimbabwe's Path Forward: Conditional Engagement and Responsible Investment
While the Global North makes these progressive strides, leaders in the Global South, including Zimbabwe, often remain fixated on attracting Foreign Direct Investment (FDI) at any cost, declaring themselves 'open for business' without attaching meaningful conditions. This uncritical approach frequently stems from a focus on short-term gains and, regrettably, sometimes even kickbacks, rather than the long-term welfare of working people and the environment.
The influx of Chinese and Russian corporates, often less stringent on human rights and environmental considerations, has further complicated this picture. These investors, who prioritize extraction without much regard for ethical practices, have become the investors of choice for some comprador bourgeoisie-led governments, eager to line their pockets at the expense of national progress.
Zimbabwe must abandon this reckless 'open for business' mantra. The nation must strategically choose to engage only with corporates who demonstrably promote value chain justice. This is the only viable path to ensure that the nation truly retains value from the arduous toil of its workers and the exploitation of its precious natural resources.
Legislative and Policy Imperatives for Value Chain Justice
Zimbabwe's current lack of comprehensive laws guaranteeing value chain justice has directly contributed to mass unemployment, uncontrollable migration, economic stagnation, pervasive poverty, underdevelopment, and severe environmental degradation.
Recommendations for Policy and Legislative Reform:
1. Enact a Value Chain Justice Act:
Parliament must urgently craft and enact legislation promoting value chain justice, not only for goods destined for international markets but also for produce intended for domestic consumption. Such a law would incentivize and support primary producers, thereby revitalizing industries and stimulating a productive economy where the majority of the people are actively engaged.
2. Integrate Value Chain Justice in Collective Bargaining:
Labor unions must incorporate the agenda of value chain justice into collective bargaining agreements. This would provide a crucial mechanism for protecting the labor rights of workers across the entire value chain, ensuring fair wages, safe working conditions, and dignified treatment.
3. Restructure Indigenous Ownership Laws for Non-Renewable Resources:
The previous indigenous ownership laws, which mandated 51% ownership by indigenous black people, were often retrogressive. While well-intentioned, they often failed to achieve their objective, with profits frequently siphoned off into offshore accounts and properties, bypassing local investment and frustrating hard-working black workers who continued to earn paltry salaries.
A restructured indigenous ownership model for sectors extracting non-renewable natural resources is critical. The 51% indigenous share should be strategically distributed as follows:
o 30% to the State: This portion should be ring-fenced and channeled directly into social services for the people and vital infrastructure development. This ensures that the nation as a whole benefits from the exploitation of its finite resources.
o 20% to the Workers: This share should be equitably distributed among the workers involved in the production process. This direct financial stake would serve as a powerful incentive, promoting increased production, fostering a sense of ownership, and significantly improving worker welfare.
4. Strategic State Planning and Marketing:
The promotion of value chain justice must be inextricably linked with robust state planning on production priorities and effective marketing strategies. The government needs to proactively guide and support the development of value chains that benefit local producers and ensure fair returns.
Conclusion: A New Dawn for Zimbabwe
Zimbabwe, like many countries on the periphery of global capitalism, should reflect on her developmental trajectory. The plausible way forward will include; comprehensive legislation and policies promoting value chain justice. This fundamental shift will not only boost production from the ground up but also help protect the environment, effectively resolve the pervasive unemployment crisis, reverse detrimental migration trends, and significantly enhance the state's capacity to deliver essential social services to its people. By prioritizing value chain justice, Zimbabwe can move beyond its current paradox and forge a path towards sustainable economic growth, equitable development, and a brighter future for all its citizens.
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