Dimaf to be increased

Senior Reporter
THE Minister of Industry and Commerce, Cde Mike Bimha, yesterday toured Portland-Pretoria Cement and Clay Products factories in Bulawayo to get first hand information on the operational challenges facing the city’s ailing industries.
In an interview soon after touring the two factories, situated on the city’s outskirts, Cde Bimha expressed concern over the performance of the country’s industry, particularly in Bulawayo where an estimated 100 firms either shut down or relocated to other cities such as Harare.
“As the Government we are really worried that our country’s industry is going through a rough patch, especially in Bulawayo where most companies are operating below capacity.

“We want to resuscitate the manufacturing sector and revitalise Bulawayo’s industries. My visit here is primarily to assess the situation on the ground so that we proffer solutions to this challenge,” said Cde Bimha.

The minister said the collapse of the country’s industries was largely due to lack of implementation of the Industrial Development Policy (IDP) and sanctions imposed by the West.

Cde Bimha said in an effort to revitalise the industry, the Government would increase the Distressed Industries and Marginalised Areas Fund (Dimaf) to finance industrial recovery.

“As the Government we cannot continue to operate without industry and President Mugabe made an undertaking to resuscitate industries. We are therefore working on increasing money under Dimaf to enhance capacity utilisation of industries, particularly in Bulawayo, which used to be the industrial hub of the country.

“Dimaf was a failure to start with because the money was just not enough and as a result few companies benefited from the facility hence we need to revisit it and engage players in the industry so that we are able to give priority to companies that deserve.

“My ministry continues to explore ways aimed at addressing the problem. I also intend to engage the Minister of Finance (Cde Patrick Chinamasa) so that we increase the fund to help improve the financing of the ailing industry countrywide,” he said.

The previous inclusive Government was slow in disbursing the $40 million Dimaf which was not enough considering the huge working capital industry needs to recapitalise.

Industries in Bulawayo require over $73 million in the short-term to recover.
Cde Bimha could, however, not disclose the amount the Government intended to inject into Dimaf, saying he was still in discussions with his counterpart in the finance ministry.

“We have a lined up measures to assist in recapitalising industry such as the issue of tariff regime, tax clearance and incentivising industry as well as protecting certain industries. We urge other players to complement our efforts and industry should also come up with viable ideas and strategies to address this challenge rather than just crying.

“There is a need of a new sense of seriousness so that we deliver to the nation as part of the Zanu-PF Government pledge,” he said.
Cde Bimha said some of the challenges facing industry in the city would be discussed during the Confederation of Zimbabwe Industries (CZI) annual congress, which is under way in Bulawayo.

Cde Bimha officially opened the congress which started yesterday.