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Business Correspondent
THE current centralised decision making process in both the Government and private companies is negatively affecting companies in Bulawayo, the mayor Councillor Martin Moyo, has said. Speaking at the Confederation of Zimbabwe Industries (CZI) annual congress in the city Mr Martin Moyo said Bulawayo had suffered economical from the centralised decision making structure as most business approvals had to be done in Harare.
The mayor said the centralised decision making system had led to delays in approval of business licences and transactions.
“Granted capitals in the world over are a natural attraction but this should not mean that all transaction even minor ones can only be conducted in the capital.
I am referring here to materials like issuance of liquor licences, commuter operators’ licences, changes of reservation, approval of town planning layouts, approvals for council staff to travel outside the country,” said Clr Moyo.
He said Bulawayo businesses were being frustrated as their loan applications took time to be responded to as they had to be taken to Harare before being approved.
“Due to the fact all investments decisions have to be made in Harare those investors intending to invest and set up business enterprises in Bulawayo are made to wait inordinately for long periods of time while powerless local authorities refer these matters to Harare. As a result, much needed Foreign Direct Investment has been lost as investors give up,” said Mr Moyo.
He said banks had also adopted the same system where all the decisions were made in the capital city, affecting the local business community.
“The city of Bulawayo and the region boast a number of financial institutions, commercial banks, building societies, merchant and infrastructure banks, their major clientele are local businesses and industries. Strangely, not a single one of these has the authority to approve loan applications, overdraft facilities and even employment applications by the local job seeking youths.
Everything is referred to the headquarters which are obviously not in Bulawayo for decisions.
“Locals are denied access to finance that may very well belong to their kith and kin,” he said.
Clr Moyo said it was also not fair that most pensions funds and insurance companies were based in Harare which forced pensioners to use “their meagre” recourses to travel when they wanted to get their dues.
Mr Moyo also called for the decentralisation of the tender board from Harare to the other cities as the current set up was not benefitting local companies.
Online Reporter