Companies must use $40m fund wisely

Bulawayo which must reclaim its position as the country’s manufacturing hub.
Bulawayo has experienced increased job losses over the past few years that have been attributed to the closure and relocation of companies to other cities, especially Harare.
While a number of firms re-opened for business last week after the annual Christmas and New Year holidays break, others could not do so because of financial challenges.
The release of the funds brightens prospects of economic recovery in the city and quashes rumours that political parties were using the $40 million as a campaign gimmick and that no money was coming Bulawayo’s way.
Yesterday we quoted Mr Stanslaus Mangoma, the director of enterprise development in the Ministry of Industry and Commerce, as saying Government had shortlisted 58 companies to benefit from the fund and that these were selected last year by the taskforce team on the “Let Bulawayo Survive” campaign.
The names of these companies have been submitted to the Central Africa Building Society (CABS).
What is now needed is transparency in the handling of the funds. Companies that are going to access the money must use it responsibly and recapitalise their businesses and bring them back to life.
Bulawayo needs all its companies back on their feet so as to create employment and wealth not only in the city, but surrounding regions. We cannot talk of a successful turnaround of the economy when industries in the country’s second largest city are limping and on the brink of collapse.
Granted, Bulawayo does not have 58 companies only and this means the fund should be made a revolving facility so that more firms will also benefit.
We want to believe the terms and conditions of the facility will not be another albatross around companies’ necks and that they will be able to repay the money.
For now the focus should not be on which firms have benefited and why, but on the ability of those companies to recapitalise their operations, create employment and stimulate the business environment in the city.