THE Confederation of Zimbabwe Industries (CZI) said it will this week meet new Industry and Commerce minister Mike Bimha to discuss ways of resuscitating Bulawayo companies.
Gamma Mudarikiri Own Correspondent
CZI president Charles Msipa told Southern Eye Business last Friday mobilisation of capital to rescue distressed companies should be prioritised.
Industry in Bulawayo is on its knees with official statistics showing that last year alone, 84 companies closed shop while 64 are reported to be on the verge of collapse.
Msipa said he was optimistic industry would be revived although this was dependent on the implementation of policies that encourage business growth.
“Next week we will be engaging the new minister of Industry on the way forward to revive industry.
“What is important at this point is coming up with initiatives to allow capital inflows,” he said.
He said from 2009, industry in Zimbabwe had been failing to attract capital hence the high number of companies that are struggling to stay afloat.
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The government has been struggling to finance industrial recapitalisation with the disbursement of the Distressed Industries and Marginalised Areas Fund (Dimaf) doing little to alleviate the plight of struggling companies.
As of May, only $19 million out of $40 million had been disbursed under Dimaf.
Bulawayo companies had received $11,9 million from the allocation and this was described as a drop in the ocean by analysts.
Renowned economic analyst John Robertson said the new government would need a radical shift in the way it does business if the collapse of companies is to be halted.
“The government has no money to finance the revival of industry and the best it can do is creating an environment allowing foreign direct investment,” he said.
“It took 15 years for the economy to be at this weak point and it will take more than 10 years to revive it.” Robertson urged the government to prioritise the revival of agriculture saying the sector would drive economic growth if adequately financed.
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