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HISTORICAL BACKGROUND: INDUSTRY IN ZIMBABWE
A) The years of Rhodesian sanctions
Before the unilateral declaration of independence by its Prime Minister, Ian Smith, in November 1965, Southern Rhodesia regarded itself very much as a colony of the United Kingdom (as indeed it was). Business links and investment reflected the well-established colonial bond, with the colony greatly dependent on the United Kingdom, and a balance of trade strongly favouring the latter. In 1965, things changed dramatically >colonial status was discarded, and in retaliation the world at large followed the British imposition of punitive sanctions aimed at making the country return to its previous status. This did not happen, however. Commodities and foreign currency became scarce and controlled, and shortages of all kinds strained the rebellious Rhodesian spirit. A laager (or siege) mentality developed, and the philosophy of import substitution grew. There was a strong skills base in the country: many expatriate experts identified with the breakaway, did not return to the United Kingdom, and formed the nucleus of what ultimately became a strong industrial manufacturing base, capable of producing a very wide range of acceptable quality items.
B) Zimbabwe - the land of promise
Against this backdrop, Zimbabwe was granted independence in 1980. Many of the expatriates who had become Rhodesians, and who were the skills backbone of the manufacturing industry and allied service industries, returned to the United Kingdom. Factories were abandoned, workers no longer had jobs, and things looked very bleak indeed. The exodus from the predominantly white Civil Service (moulded in the best British traditions) left public administration in chaos, and exploitation by itinerant conmen built barriers of mistrust between the new black rulers and the tiny white community which remained.
Some sixteen years later, Zimbabwe is a very different country: it is still to a large extent dependent on its own resources and the now well-established private sector, but is beginning to feel the effects of economic reform programmes. Foreign currency controls have been relaxed, access to foreign markets and goods has been enhanced, and above all, Zimbabwe is no longer perceived as an outcast by the rest of the world. This bodes well for a country which still has the best-developed manufacturing and agricultural sectors of any country in Africa other than South Africa.
C) Developing a new nation
The Rhodesian guerrilla war, followed by the skills exodus after Zimbabwe gained independence, left the country in a very difficult situation. The developed nations of the world recognized that support was needed to help it regain its strength and confidence. Aid programmes proliferated, and achieved a measure of success. It is probably true to say that at one stage Zimbabwe received more donor aid than any other country in Africa had ever received. The opportunities for rebuilding industry were legion, and the country's well-established corporations (most of which were totally Zimbabwean in their shareholding) were able to take full advantage of the new levels of liquidity and technical assistance. One or two smaller companies, because of their own skills base, flexibility and niche activities, were able to do likewise; others, unable to withstand the new pressures, closed down.
With the coming into being of the new South Africa, a country many times more wealthy and infrastructurally developed than Zimbabwe, there has been a shift in focus by the developed world, which now seems to concentrate its aid and assistance programmes in that new country. However, the technology transfer programmes undertaken in the past six years or so in Zimbabwe are by and large maturing well, and this global shift in interest towards the southernmost part of Africa should not unduly threaten the well-being of those manufacturers whose products, through export, can benefit and support less well off Third World countries.
- THE DANISH - ZIMBABWEAN EXPERIENCE IN SOLAR EQUIPMENT MANUFACTURING
By 1990 the manufacturing sector in Zimbabwe had had ten years in which to come to terms with a changed environment. One of increasing commercial opportunity and one where much-relaxed control over critical elements such as the availability of foreign currency (for the import of raw materials and capital goods) allowed entrepreneurs to participate in new investment projects with comparative ease. Fledgling industries were thus given the opportunity to develop and expand at a rate hitherto deemed impossible. The experience I am going to relate concerns the Zimbabwean solar equipment manufacturing industry, one which being well enough established by this time was able to serve the rural development needs of the entire region. I can recount here from personal involvement the fortunes of the two major manufacturers that simultaneously but separately entered Danish technology transfer programmes to help them take advantage of the new order.
In 1984, as Chief Executive of Solarcomm, an operating unit of the Apex Corporation of Zimbabwe, I was party to a decision to invest in plant and equipment to manufacture solar photovoltaic modules. Matters had reached an advanced stage when the United States Agency for International Development (USAID), the source of the necessary foreign exchange, withdrew from Zimbabwe. We were undaunted, however, and without any support from the Government of Zimbabwe a fresh source of funding was identified; and in 1987 the new plant, employing 50 workers, was finally commissioned.
Production of state of the art equipment with the latest high-efficiency materials was started, and the end product was on a par with any imported equivalent. The local rural market began to see and enjoy this form of solar energy. Attempts to enter the regional market were thwarted, however, because the Zimbabwean product did not have the international certification that its competitors had. Such certification would have cost a substantial sum of money, and repeated meetings between the then Minister of Finance and myself failed to secure access to the necessary foreign exchange. The lack of interest in, and support for, the solar energy industry (which by and large continues to prevail) made those who had invested so heavily determined not to be beaten; but no obvious solution presented itself.
In 1991 or thereabouts a Danish organization - the Danish Federation of Small and Medium-sized Enterprises (DFSME) - visited Solarcomm to see whether there was an opportunity for pooling Danish and Zimbabwean resources, the ultimate aim being to develop commercial opportunities for both parties. It was not long before the stumbling block of international certification had been identified and resolved. Solarcomm modules were sent to Ispra in Italy, where they passed all tests with flying colours, and the prized Ispra CEC503 certificate was issued. The effect on Solarcomm's sales of modules was dramatic, and exports to neighbouring countries took on more meaningful proportions.
This first success brought the DFSME and Solarcomm closer together, and frequent contacts initiated by the former on regular visits to Harare allowed both parties to gain a very clear understanding of their respective fields and the ways in which further assistance could help achieve mutual goals. The DFSME quickly identified potential collaborators in Denmark, and suggested an experienced Danish energy consultant to assist with the implementing paperwork. Mutual respect, trust and friendship quickly developed between the parties, their shared enthusiasm at the prospect of achieving measurable results being responsible for maintaining time scales and moving, often ahead of schedule, through the milestones of the Gantt charts.
Efforts at this time were directed towards providing Solarcomm with technology it did not have, and Danish design skills focused on producing electronic components that were reliable, efficient and well suited to Zimbabwean manufacturing capabilities. They had also to be well suited to their operational role in the field, and affordable by the end user. Solarcomm struggled on its own to come up with solutions, and where these were not forthcoming, was forced to import equipment whose design was far from optimum. In the event, several generations of prototypes were designed, each improving upon its predecessor. Finally, at the end of 1993, the refined product - the result of Danish technology transfer - was considered ready for full-scale production.
However, full-scale production never in fact took place at Solarcomm, and after a fundamental disagreement over this and other issues I left the company to become a director of its major competitor, Solamatics. The projects and links with Denmark moved with me, with the blessing of the DFSME, as all parties had for some time been considering developing new projects and further opportunities for technology transfer. Amongst these, now well progressed, are the necessary inputs for the manufacture in Zimbabwe of photovoltaic vaccine refrigerators, which will make Zimbabwe the only country in Africa producing this specialized equipment. Another area of specialized technology in the process of being transferred to Zimbabwe is solar-powered navigational equipment. In this niche technology Solamatics has already won government tenders to supply equipment to Lake Carabao, and is developing business in Mozambique, where rehabilitation programmes require inter alia the proper operation of ports and seaways.
Contact between the Danish and Zimbabwean partners, still facilitated by the Danish Government but now effected through the Danish Centre for Technology Transfer (KFU), is close and frequent, and it is confidently expected that the two projects mentioned above will reach full production levels before the middle of 1997. Considerable investment by Solamatics in plant and equipment is necessary, and architectural plans of the new factory space have already been approved by the municipal authorities. There have been discussions with the Danish joint venture organization (IFU) to examine their possible involvement.
In its early contacts with Zimbabwe, the DFSME identified a number of small companies that seemed in need of technology transfer - and unbeknown to me at the time, Solamatics was one of them. With Solarcomm investing in photovoltaics, Solamatics had opted to concentrate on what it knew best at that time - solar thermal energy or solar water heating. Over the 25 years or so that Solamatics had been meeting the local and regional need for solar water heaters, it had developed a considerable reputation. But its product range was somewhat limited, and so therefore was its marketplace. When the DFSME approached Solamatics, offering to put it in touch with Danish state of the art production, it was an opportunity too good to be missed. A relationship as close and as frequent as that with Solarcomm soon developed, and a year or two later Solamatics was manufacturing specialized equipment that allowed it to develop a completely new and ever-growing marketplace. Whilst that particularly technology transfer is now considered complete, new opportunities continue to be explored, and it is expected that before the end of 1996, thermal equipment of basically Danish design but Zimbabwean manufacture will be exported to South Africa and the region of the Southern African Development Community. Already the largest solar water heating system in Zimbabwe is in place and about to be commissioned. Many smaller systems have been operational for the past three years, systems that Solamatics would have had difficulty in producing before the transfer of Danish technology.
In the last few weeks there have been discussions between the collaborating parties about the commercial benefits of undertaking certain elements of manufacture in Zimbabwe for export to Denmark. This is an exciting prospect, made possible (I believe) by transparent interaction between committed parties, a feature which has characterized both technology transfers reported here.
- FORMULA FOR SUCCESS
What then is the formula for success? I have spent some time analysing the factors that affect manufacturing and industry in present-day Zimbabwe, because I believe such an analysis to be the fundamental starting point in any technology transfer process. A close understanding of the recipient country and its people allows meaningful analysis of its strengths and capabilities in relation to its neighbours, the international community and the market they represent. For an analysis of this sort to be meaningful, the intending transferor should anticipate undertaking a meticulous and in-depth survey to ensure that his intentions are realistic and appropriate, and will benefit both parties in such a way as to encourage ongoing commercial interaction between them. There would be little point, for example, in transferring ice-cube making technology to an Eskimo community! Having satisfied himself as to the feasibility of his intentions, the transferor should widen the scope of his investigations to ensure that supporting services are capable of maintaining project viability. With due respect to Zimbabwe's northern and eastern neighbours, it has to be said that none could have contemplated the technology transfers effected in Zimbabwe. None has the resources to undertake sophisticated manufacture and to comply with the quality requirements of the developed world.
I believe that each of the following requirements is essential for technology transfer:
There must be local knowledge, skills and understanding at the shop-floor level, and the opportunity to improve in these areas through local training courses. An awareness of production processes and the implications of quality workmanship versus rejects must be well established.
There must be commercial opportunity and management expertise to develop the project without outside help once the relevant technology has been transferred. (A number of projects known to me failed as soon as the overseas lifeline was cut.)
There must be a stable and capable infrastructure. A project is doomed if it has to rely on foreign expertise to deal with hydraulics, pneumatics, vacuum equipment, computer interfaces and the like. And if the supply of electricity or gas is erratic, the problems are compounded.
The DFSME spent much time in Zimbabwe gathering the information it needed. The persistent questioning and probing by its officials on their numerous preliminary and monitoring visits to the country allowed it to amass much pertinent data on Zimbabwe as a potentially suitable recipient of a wide range of technology transfers.
Having satisfied itself about the potential for success, the DFSME demanded a certain level of performance from the companies selected, and there was little sympathy for those that did not measure up. Regular reporting on progress, required from Dane and Zimbabwean alike, ensured that all milestones were either achieved or modified, and that none was overlooked. More important, it kept everyone informed on time about achievements, and about problem areas needing special attention.
The transfer of technology between OI-Electric, the Danish partner, and Solamatics was fortunate enough to benefit from the services of an internationally respected energy consultant. His role was largely, but by no means restricted to, that of a facilitator, familiar with the objectives and modus operandi of the DFSME and therefore well able to interface with it on behalf of both transferor and transferee. Not being directly involved in the commercial activities of the collaborating companies, the consultant was able to identify peripheral opportunities for both (sometimes resulting from their very interaction) in a dispassionate and productive way. His continuing visits to Zimbabwe, usually twice or three times a year, invariably bring forth new ideas and opportunities because of his close contact with the international renewable energy community. For his part, he keeps that community fully briefed on Solamatics' activities and plans. The DFSME has withdrawn from overseeing daily details and ensuring adherence to stated paths and goals, but its officers remain fully prepared and willing to offer assistance if it is sought. The facility for cordial and frank contact with that organization is, in my view, an indication of a job well done, and one which demonstrates that collaboration between nations can be easy and positive, provided that it is approached in a businesslike and dedicated manner.