adminSince the formation of the inclusive Government, efforts have been made to kick-start the country’s industrial sector with emphasis on the manufacturing side which is critical to achieving a positive balance of trade. While giant strides have not necessarily been made in that regard, there are telltale signs of revival especially in Harare where some companies are thriving while a few are struggling.
In Bulawayo, however, because of the sheer numbers of big industries in the city’s Belmont Industrial Area, the situation appears gloomy as companies continue to close shop citing viability constraints. Granted, more than 80 companies have either closed shop or relocated from Bulawayo to other cities and towns but the shutdown of firms has not only been happening in the city but is a countrywide phenomenon which our political and Government leaders have been grappling with for some time. Industry in Bulawayo has also not only recorded closures but some like Udine Products — which closed in 2006 — have re-opened after years of inactivity after capital injection. We contend that the revival of industries should be a priority for the inclusive Government at national level and the economic cluster ministries should ensure that we are on the path to resuming full productivity in critical sectors to spur economic development.
We also concur with sentiments expressed by celebrated Bulawayo economic commentator Dr Eric Bloch that the level of de-industrialisation was the same countrywide but is more glaring in the city because of its huge former industrial base. On Wednesday, we reported of another company closure in the city with giant clothing firm Belmor Manufacturers shutting down its factory leaving 300 workers stranded. Viability problems were cited. It however, also emerged that the company was one of the applicants to the Distressed Industries and Marginalised Areas Fund and judging from the latest developments, its application appears to have been unsuccessful.
Yesterday, officials from the Ministry of Industry and Commerce were set to meet company executives to discuss the closure.
We regret the closure of Belmor and urge authorities to move with speed and find a way of re-opening the company and saving jobs. Its closure also brings into focus the opaque nature of the administration of Dimaf with various stakeholders expressing concern at the manner in which CABS is managing the fund.
Last month, CABS managing director Mr Kevin Terry said companies from Matabeleland had received the bulk of the funds with 17 firms in the region receiving 80 percent of the $11,4 million disbursed so far. He said companies in Matabeleland received a total of $9 million from the fund but with the continued closure of firms in the city we wonder which companies have received the money. Politicians across the divide have been scathing in their criticism of CABS for its alleged dithering in disbursement of the money and the stringent conditions it attaches to it.
We are also concerned at the failure by CABS to make public the names of the companies which have so far benefited from the fund because as long as the identities of the beneficiaries continue to be shrouded in secrecy, suspicions will linger that something underhand is afoot. We call on all stakeholders — politicians, industrialists, financial institutions and Government to join forces to ensure that the country’s industries are revived and recapitalised so that they resume full-scale production for the benefit of the nation.
Zimbabwe needs a strong manufacturing base to compete favourably with products from the region which are so far dominating the local market. Edible oil manufacturer Olivine Industries, for instance, has working capital and aged machinery constraints while having to face stiff competition from cheap imports mainly from South Africa. The company, which manufactures laundry soap, margarine, baked beans and cooking oil, is operating at 32 percent capacity and needs fresh capital injection. Government should look at ways of protecting and assisting such industries which are critical to economic development.
Online Reporter