adminOut of the several approved joint venture projects, only two are functional although on a limited scale. EasiPark, which is jointly owned by the city and EasiHold of South Africa, is operational but under a lot of controversy. The two parties have since gone for arbitration with a view to cut ties.
The second functional business is the Harare Mabvazuva Village in Msasa (formerly Caravan Park). The business is jointly owned by the city and Mubaiwa Hotels. The other businesses are at various stages of implementation, cancellation or review. Residents were made to expect high returns from the city’s business ventures with promises that their rates and supplementary charges would be subsidised with profits from the business ventures. But six years after the concept of business ventures was approved by the Sekesayi Makwavarara Commission that ran the city affairs — the majority of the business ventures are yet to see the light of day.
Harare business development manager Mr Alois Masepe confirmed the slow pace in implementing the business ventures. Only last week did the Harare full council approve the setting up of a board to oversee the operations of the city’s businesses. City sources said when the present MDC-T council came into office in July 2008 it literally froze the business deals as the councillors argued they did not understand the joint venture projects.
“This meant for the past five years, business has been at a standstill because the councillors did not appreciate the value of the businesses. It is unfortunate they have seen light when their term has come to an end,” said a city source.
Mr Masepe concurred.
“Failure to create Harare Holdings frustrated the implementation of these projects. The board is supposed to oversee the development of the businesses while council concentrates on its core mandate of service delivery,” he said.
He said council red tape – the committee system- was not responsive to the modern business environment where investors want to move at supersonic speed. The committee system takes long for something to be approved and finally implemented. Lack of business appreciation led to the delays as matters were referred from committee to committee.
“There was lethargy in the full implementation of the strategic plan that gave birth to the joint venture projects. The plans were adopted before the present council. When the councillors came in there was a lot of familiarisation required hence it took this council five years to appreciate the concept,” he said.
He said the city had also not set aside any funding for the projects even for the ones it runs on its own such as Hillside Nursery.
He said bad blood caused by ‘unprofessional conduct’ at EasiPark affected the joint venture business. The company has failed to declare a dividend to Harare amid allegations some officials were siphoning money to South Africa.
He added that the financial sector failed to ‘come to the party’.
“The other reason why the businesses failed to take off is because the financial sector did not support us,” he said.
Some of the joint venture projects are the textile factory with Ningbo Baitai of China near High Glen Shopping Mall and Sunshine Properties with Augur Investments.
The deal involves construction of houses, a hotel, a truck inn, and a shopping complex.
A partner is in the process of signing an agreement with the city on the joint management of Harare Quarry.
The city also has a joint deal with Erac on the setting up of a bio-gas plant at Firle sewage treatment plant and another with El Nour for the construction of industrial incubators along Simon Mazorodze Road in Mbare.
The city is yet to finalise its deal with Consortio International of the United Arab Emirates for the construction of a second Mupedzanhamo in the Shawasha Grounds in Mbare.
Online Reporter