BULAWAYO City Council officials have disputed the number of closed firms in the city, saying some of the statistics are based on shelf companies that are not remitting tax to the government.
CHIEF REPORTER
Official figures from the government indicate that more than 100 firms have in recent years closed shop in Bulawayo rendering thousands jobless.
Speaking at a breakfast business meeting yesterday, the acting city economic development officer, Brian Hlongwane queried methods used to determine the number of closed firms.
Hlongwane said the city’s development is taking a huge knock due to political and financial challenges.
“Some of the policies by central government are harmful to local authorities,” he said.
“All banks headquarters are located in Harare.
“What is even more worrying is the number of closed firms in Bulawayo.”
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Hlongwane said he tried to query the statistics of the number of firms reportedly closed in Bulawayo and the answer he received was unsatisfactory.
“I once tried to seek information from the Ministry of Industry’s Bulawayo office and I was told that they base their calculations on companies that are not paying tax,” he said.
“This goes for shelf companies.
“So how do shelf companies constitute closed firms?”
Hlongwane said the rigid centralised decision making in Harare and unpredictable and inconsistent policy pronouncements were also negatively affecting the city.
“The absence of a clear policy on economic development, at both the national and the local level [is affecting development],” he said.
“Capacity utilisation has declined by 3,3% from 2013 to 36,3%.
“The manufacturing sector’s contribution to GDP has declined from 25% in the 90s to 12% currently.
“In our case, the effect is that much more profound”.
Hlongwane said the government has shown little commitment in assisting the city find lasting water solutions.
“Lack of commitment to address the water supply situation is worrying,” he said.
Other officials said the water crisis was over amplified to scare away investment.
An unnamed firm is said to have relocated but a beverage manufacturing company in the same zone expanded its operations during the height of the water crisis.
The Director of Engineering Service’s Simela Dube said due to climate change and low water inflows to the city supply dams, council might be forced to decommission three dams early next year.
Dube said as of March 9, the supply dams were 60,29% full.
The meeting was meant to update business stakeholders on available business opportunities in the city.
