INDUSTRY and Commerce minister Mike Bimha has lamented the drastic decline in shoe production by Bata Shoe Company saying the government is looking at ways of ensuring the giant shoe manufacturer returns to its former glory.
STEPHEN CHADENGA OWN CORRESPONDENT
Speaking at a dinner hosted by the Confederation of Zimbabwe Industries (CZI) Midlands Chapter in Gweru on Thursday, Bimha said the government will soon implement tax on the exportation of raw hides to protect local industry.
“I learnt with sadness that Bata company used to produce 10 million pairs of shoes per year and employing nearly 5 000 workers, which figures have now dwindled to two million pairs of shoes per year and 1 500 workers respectively,” Bimha said.
Early this year, Bata managing director Luis Pinto blamed the raw hide shortages on illegal exports of the commodity. Bimha said calls to implement the proposed levy on the exportation of raw hides, which has resulted in the shortage of the basic raw material, would be applied soon.
“I am also delighted to confirm that your proposal on raw hides is currently under active consideration and you will be advised of its outcome shortly,” he said.
Currently, Bata is operating at 40% utilisation capacity, but has plans to increase to 60%.
Turning to problems faced by chrome ore processor Zim Alloys on depressed commodity prices, Bimha said Zimbabwe had no control over dictates of international commodity markets.
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He, however, said the government could chip in by encouraging beneficiation and legislation that compels value addition.
“What we can do though is to encourage beneficiation and where feasible enact legislation to compel value addition,” Bimha added.
