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Oliver Kazunga Senior Business Reporter—
THE government is open to discussions that can lead to Bulawayo industries being exempted from paying import duty on certain raw materials to promote the revival of city companies, Industry and Commerce Deputy Minister Chiratidzo Mabuwa, has said. Once the industrial hub of the country, Bulawayo has in recent years suffered massive de-industrialisation resulting in loss of jobs to an estimated 20,000 workers.
Close to 100 companies have closed shop in the second largest city due to use of antiquated machinery, stiff competition from cheap imports and liquidity challenges.
Mabuwa admitted last week that the speed to resuscitate industries in Bulawayo was slow although some of the city firms were back on track. “We know that the speed of having these industries back to functioning is very slow. What we want to know are the problems that these industries are facing so that the industries don’t close again,” said the Deputy Minister.
“We can even have an industry that can negotiate with the Ministry of Industry and Commerce by highlighting certain raw materials that they need and we can negotiate on their behalf at the Ministry of Finance and Economic Development so that they’re exempted from duty.
“Bulawayo was a city well known of always having a smoke or a hub of industry, even up to now, there’re some industries that are now functional.” Companies such as Archer Clothing and Zimbabwe’s textile giant National Blankets, although still under judicial management, are showing signs of recovery.
Economic experts have pointed to an urgent need for a strong financial and regulatory stimulus to revamp domestic production and foster economic growth. Matabeleland Chamber of Industries president Walter Chigwada said they welcomed the proposal.
“That’ll be a welcome development. What we don’t know are the modalities that the government will effect to exempt Bulawayo firms from paying duty on certain raw materials. Most of the companies in the city are distressed so whatever can be done to resuscitate them is welcome,” he said.
Deputy Minister Mabuwa also challenged the city’s industries to keep pace with modern technology to reduce pollution caused by emissions. “Bulawayo was in the past known to be a city that used to have smoke every time but we don’t want that now because it causes air pollution.
“We want an industry that has technology that doesn’t damage our environment,” she said. In 2014, the Environmental Management Agency (EMA) closed at least 10 companies in Bulawayo for causing environmental pollution.
The firms were, however, reopened when the industries committed themselves to addressing the problems.
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