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Bulawayo has been the worst affected by company closures that has seen thousands of workers losing their jobs. What is disturbing is that some of the companies that have closed in the city have opened new branches in other cities and towns. There is therefore urgent need to come up with incentives to make Bulawayo more attractive to investors. The city, which used to be the country’s industrial hub, has now been reduced to a service provider.
It is therefore not surprising that 27 percent of the city’s economically active population is unemployed. The figure is the highest in the country where jobless average is 11 percent. Major industries in Bulawayo closed long back and millions of dollars are therefore needed to revive these industries so that the city can retain its status of being the leading industrial town. The city is strategically positioned for both imports and exports and has the required rail and road infrastructure.
The city, as already stated, has probably the highest number of companies that closed due to economic challenges experienced in the last decade and cannot afford to lose the few remaining businesses. Reports that some of the few businesses operating in the city might be closed for failing to comply with indigenisation laws have caused panic among residents. Foreign companies operating in reserved sectors of the economy have been ordered to comply with the country’s indigenisation laws or risk being closed.
Last week officials from the National Indigenisation and Economic Empowerment Board are reported to have visited the city’s non-compliant companies that are operating in reserved sectors and issued them with final warning letters. These companies risk having their operating licences terminated.
We therefore want to urge these companies to ensure they comply with the country’s indigenisation laws because the city cannot afford to lose even a single company. Under the Indigenisation and Economic Empowerment Act, foreigners are not allowed to invest in reserved sectors such as grain milling, barber shops, tobacco processing, bakeries, local transportation and fast food outlets among others.
Foreigners that have invested in these sectors should therefore engage locals so that they can take over the businesses as opposed to closing the businesses. The company management should not allow a situation whereby their operating licences are cancelled due to failure to comply with indigenisation laws. Bulawayo has had enough of company closures and the thrust now should be to protect the few remaining while working out modalities of re-opening the many closed companies.
The city’s economy cannot be sustained by retailing as is the case now. We need to re-open big manufacturing industries that can employ thousands of workers. Bulawayo is home to the National University of Science and Technology which is churning out thousands of highly skilled graduates every year who are supposed to join our commerce and industry but unfortunately some of these graduates are walking the streets because of the shrinking job market.
We want to appeal to government and the private sector to prioritise Bulawayo when it comes to new investment and revival of industries.
derick.khumalo