Zimbabwe - Overseas Development Institute

l e v e l s that both replacement investment and much-needed expansion
has not occurred, as, f o r instance, has occurred i n the sugar
industry.
64. Most of the d e t a i l e d f i r m - l e v e l evidence i s drawn from f i e l d
work c a r r i e d out i n Zimbabwe during June 1987.
65. The d i s c u s s i o n here i s not based on the evidence of a
r i g o r o u s l y analysed sample survey, rather on the basis of
d e t a i l e d d i s c u s s i o n at the f i r m l e v e l , complimented by more
macro-based survey m a t e r i a l (for example from the CZI, the CSO
and the U n i v e r s i t y of Zimbabwe surveys) already i n existence. The
choice of "successful and unsuccessful" i s r e l a t e d to the o v e r a l l
framework f o r the wider ODI p r o j e c t , of which t h i s Zimbabwe casestudy
forms a c o n s t i t u e n t part.
66. For recent sector-wide surveys of a g r i c u l t u r a l implement
manufactures see CZI (1986) and Mazhar and Ndlela (1987) .
67. Zimplow's Annual Reports (various), Tinto I n d u s t r i e s ' s Annual
Report 1983 and The F i n a n c i a l Gazette (supplement), 31 October
1986. Bulawayo S t e e l Products does not p u b l i s h separate r e s u l t s
i n Zimbabwe; i t i s owned by the B r i t i s h f i r m Amalgamated Metal.
68. At l e a s t i n i t i a l l y , the severe drought and r e l a t e d drop i n
domestic demand for products would, of course, have been an
i n f l u e n c e i n short-term s a l e s .
69. Bulawayo S t e e l Products as long ago as 1952.
70. The main imported input i s sheet s t e e l ; however Tube and
Pipe I n d u s t r i e s w i l l soon be r o l l i n g t h i s product which w i l l
reduce even f u r t h e r the import dependence of manufacturing - yet
another example of contemporary import s u b s t i t u t i o n i n Zimbabwe
(see Note 18).
71. Some forges and presses are made i n Zimbabwe, for example by
A l l Metal Founders , Hytech and D. H a d f i e l d . I am g r a t e f u l to
C o l i n Stoneman f o r t h i s p o i n t .
72. The term "adequate" w i l l be expanded upon, below. To have a
high degree of competitiveness among j u s t two firms i s , of
course, not always the case. For instance there are also j u s t two
firms that manufacture cement i n Zimbabwe. Not only i s the p r i c e
of cement government-controlled but there i s agreement among the
two firms that no p r i c e c u t t i n g should take place and, i n
a d d i t i o n , there i s an agreed market-sharing arrangement whereby
each f i r m supplies cement to only s p e c i f i e d parts of the country
- f a r indeed from the world of perfect competition.
73. Indeed i n the recent Annual Reports of Zimplow the comment i s
made that the domestic market should finance exports!
74. The Standard Chartered Bank's corporate p r o f i t a b i l i t y index
jumped from a value of 50 i n 1978 to almost 200 i n 1981, the year
when the p r i c e c o n t r o l l e g i s l a t i o n was tightened.