STRUGGLING Bulawayo industries are pinning their hopes for revival on the national budget expected to be announced soon by the Finance minister Patrick Chinamasa amid indications there are plans to pump more cash into the Distressed Industries and Marginalised Areas Fund (Dimaf).
GAMMA MUDARIKIRI OWN CORRESPONDENT
Industry and Commerce minister Mike Bimha has promised to revive Dimaf — a $40 million loan scheme set by the government in 2010 to finance the recapitalisation of industry.
With Chinamasa’s budget expected in December or January next year, the Bulawayo business community has set its ears and eyes on it. Analysts say it could stimulate growth of the economy thought to have slowed down since President Robert Mugabe’s re-election in July 31.
Dimaf disbursements have been slow largely due to the unavailability of finance in the Treasury.
A business lobby group, Bulawayo Business Arise (BBA), said the government should in the next budget, prioritise funding of the manufacturing and other primary sectors like agriculture and mining to ensure the recovery of the city.
Officials said they anticipated the revival of Dimaf they viewed as key to the city’s industrialisation.
Speaking to Southern Eye Business on the revival of Bulawayo companies, Bimha said the government was still making consultations and accessing proposals on the revival the city’s industries.
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He said the government would be reviewing Dimaf in the coming budget although he could not be drawn into disclosing the actual monetary value expected to be allocated to the revolving loan facility.
“The government would be reviewing Dimaf in the coming budget not only for Bulawayo, but for industry nationwide,” Bimha said.
“It is, however, too early to give details on how much would be allocated in the review of the fund as consultations are still going on,” he added.
Bimha said the revival of industry in Bulawayo was in line with the government industrial policy which also calls for the establishment of economic zones.
“We are waiting for the national budget to see what the government would allocate for the industry in Bulawayo,” BBA administrator George Mukamba said.
“The budget, however, should prioritise the financing of primary sectors like agriculture and mining which are linked to the manufacturing sector, while the revival of Dimaf would also play a positive role in the recovery of industry,” he added.
Mukamba said the budget should also focus on infrastructure development although this would be a mammoth task considering the fact that 70% of the national budget is swallowed by civil servants salaries.
BBA has also been advocating for Bulawayo to be declared a special economic zone which would provide for the establishment of tax incentives and free duty zones expected to attract foreign direct investment.
Bulawayo requires an estimated $400 million in the short to medium term to salvage close to 100 companies which closed shop last year.
