A LOCAL business pressure group, Bulawayo Business Arise (BBA), is set to submit proposals to President Robert Mugabe’s new administration — expected to be announced in a few days’ time —on the revival of industries in the beleaguered City of Kings.
Gamma Mudarikiri
Bulawayo industries have been listed in critical condition for the past decade. The situation has worsened in the past year with several firms closing, throwing thousands of workers into the streets.
Latest statistics from the Industry and Commerce ministry then — headed by MDC leader Welshman Ncube — revealed that 84 companies closed shop last year while 64 are reported on the verge of collapse.
With a new administration beckoning, local business people have pinned their hopes on Mugabe, despite his recent threat to abandon Bulawayo and Harare for thumping their noses at him in the July 31 polls.
BBA administrator George Mukamba told Southern Eye that after a series of meetings with the local business community his grouping has come up with a proposal to be submitted to the new administration on the resuscitation of ailing industries in Bulawayo.
“We are awaiting the appointment of a new Cabinet to submit the proposal,” Mukamba said.
Mukamba, who could not be drawn into disclosing much detail on the proposed measures to revive the ailing industry, is on record saying the city should be declared an industrial zone to attract investment.
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BBA is an organisation that offers small-to-medium scale enterprises support services and mobilises local business in the revival of the defunct industry in Bulawayo.
According to statistics from the Industry and Commerce ministry, industries in Bulawayo need an estimated $73 million to fully revive, but have been battling to attract investment.
The disbursement of the Distressed Industries and Marginalised Areas Fund continues on slow pace with only $19 million distributed as of June this year from the initial allocation of $40 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, as it continues to face a myriad of challenges including subdued foreign direct investments, limited long-term loans and huge energy limitations.
The new Zanu PF government, during the election campaign period, pledged to prioritise reviving the ailing industry in Bulawayo although economic analysts warned that this would only be possible if the new administration modified its economic policies to suit investors’ interest.
The new government indicated that it would intensify its indigenisation policy which calls for foreign companies to cede 51% of their shareholding to locals. Economic analysts have, however, warned that this will scare away investment, leading to a general demise of the economy.
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