THE AFFIRMATIVE Action Group (AAG) says it is lobbying the government to consider an alternative source of funding for Bulawayo companies as the Distressed and Marginalised Areas Fund (Dimaf) has failed to take off.
GAMMA MUDARIKIRI OWN CORRESPONDENT
In an interview with Southern Eye Business yesterday, AAG national vice-president Sam Ncube said they had engaged the government ahead of the 2014 national budget to consider an alternative source of funding to salvage industry in Bulawayo which is in the doldrums with the continued liquidation and foreclosure of companies since the economy is on a tailspin.
The Zanu PF-linked business lobby group which is also in the process of appointing a 20-member economic council for Bulawayo, said Dimaf had failed to save industry in Bulawayo after only $19 million of the fund was disbursed from the initial allocation of $40 million.
“We are pushing the government to consider an alternative fund for Bulawayo as Dimaf has failed,” Ncube said.
“We submitted a proposal and we are waiting for the announcement of the budget to see what the government comes with for Bulawayo industries,” he added.
Industries in Bulawayo need an estimated $400 million to recover after close to 100 companies went under last year with more expected to close as the economy continues in the doldrums.
But Industry and Commerce minister Mike Bimha recently said the government would be reviving Dimaf, adding that the actual amount was expected to be announced in the national budget which, however, had been delayed. Bulawayo industries are anticipating a government financial lifeline in the coming budget.
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Ncube said while there was need for the manufacturing industry to be revived countrywide, Bulawayo was a special case and the economic council being appointed would play a critical role in coming up with an implementation strategy in addressing the plethora of challenges besetting the city. Twitter feedback @mudarikirig
