Zimtrade targets Bulawayo firms

Economy
ZIMTRADE is inviting Bulawayo-based companies to participate in an export and marketing training programme slated for next month

ZIMTRADE is inviting Bulawayo-based companies to participate in an export and marketing training programme slated for next month as part of efforts to find ways of resuscitating the ailing industry in the city.

Report by Own Correspondent

In a notice yesterday, Zimtrade, which promotes private sector and export development in the country, said the two-day training programme in September had been designed to promote and revive export trade in Bulawayo, the country’s second-largest city.

“The training programme is aimed at developing and improving the skills and management capabilities of relevant company personnel and assist companies to penetrate exports markets, resuscitate export activities,” part of the notice reads.

Zimtrade added that the training programme was also aimed at increasing the export market share in Bulawayo and would also focus on the development of export business plan, market research and export promotion strategies and development, among other key discussion areas.

Bulawayo industry is currently on its knees. Eighty-four companies closed shop last year, while a total of 64 companies are reported to be on the verge of collapse.

Due to the harsh economic environment, the local industry is failing to sustain local demand of goods and services which has resulted in the trade deficit widening to $2,37 billion in the six months to June after imports accumulated to $3,92 billion against exports of $1,546 million.

According to the Confederation of Zimbabwe Industries’ manufacturing sector survey, industry reduced its capacity utilisation to 44% from 57% as of June this year and it continues to face a myriad of challenges including subdued foreign direct investment, limited long-term loans and huge energy limitations.

The country remains a net importer of goods and services which have seen trade deficits continuously growing.

President Robert Mugabe’s new government has promised that it will prioritise Bulawayo’s economic revival, albeit amid threats to punish residents for snubbing him during his controversial re-election.

Critics, however, doubt that Mugabe will achieve the targeted industrial recovery largely due to policy misalignment, specifically the indigenisation law deemed to be scaring away investment.

The country’s indigenisation law requires foreign companies to cede 51% of their shareholding to locals.

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