ABSTRACT

This chapter looks at government policy during unilateral declaration of independence (UDI) and after independence. It discusses the growth and development of manufacturing with emphasis on growth of production, investment and total factor productivity after independence. Events during the UDI period provide the major explanation for the structure and orientation of industry. Economic sanctions were designed to effectively cut Rhodesia's external trade ties. Manufacturing faced increased import costs and a possible lack of raw material and capital input requirements which undermined export competitiveness. At independence, the industrial sector was well developed but faced a number of problems. There is a high degree of geographical concentration of manufacturing with Harare and Bulawayo accounting for nearly 70 per cent of total output in 1980. Harare alone accounted for almost 50 per cent of manufacturing output. Sanctions set the stage for a strong import substitution policy in industry.