Government committed to reviving Bulawayo industries

GOVERNMENT has re-iterated its commitment to support the revival of Bulawayo industries through continued implementation of sustainable ease of doing business reforms and initiatives that promote increased production capacity and export competitiveness.

Special Advisor to the President Responsible for Monitoring and Implementation of Government Programmes, Dr Joram Gumbo, who was in Bulawayo yesterday on a tour of General Beltings (GB) Holdings Limited, one of the giant city companies, said the Government through the Ministry of Industry and Commerce has crafted strategies targeted at the revival of ailing industries.

GB Holdings gained prominence for the production of conveyor belts during the pre and post-independence period.

“Its operations were, however, affected by the closure of industries because of various reasons, including the sanctions induced economic hardships,” said Dr Gumbo.

The conveyor belt manufacturing company requires at least US$22 million capitalisation funding to modernise its plants and hopes to secure a loan from the Matabeleland Industries Retooling Facility.

Dr Gumbo said some of the measures to support local industries include the promulgation of Statutory Instrument 126 of 2014, which prohibits the importation of locally available rubber products under the Open General Import Licence, the setting up of a Distressed Industries Marginalised Areas Fund (Dimaf) and the Matabeleland Industries Retooling Loan Facility to financially assist distressed companies.

He said the purpose of his engagement with industry captains is to expedite project implementation for the accelerated attainment of Vision 2030.

“I have had the honour to monitor some development projects covering different sectors, especially those focused on the resuscitation of industries in this previously renowned industrial hub,” said Dr Gumpo. “Government is looking to have a private sector led economy, which will lay the foundation for the achievement of Vision 2030.

“I would like to assure you that the Government will continue to provide an environment that is conducive for private sector led businesses to flourish,” Dr Gumbo said.

He said the global industry trends and patterns show that innovation and modernisation are critical if companies are to remain competitive.

“I am informed that GB Holdings requires funding to the tune of US$22million in order to modernize its plants among other endeavours,” said Dr Gumbo.

“It is our expectation that the application will be successful and thereby pave way for a serious implementation of the retooling programme.”

He said Government’s intention to strengthen the approach to industry operations would ensure that local entities do not lose market share, which might result in closure of business.

“My visit comes at a time when there is a profound decrease in manufacturing in the local market share for GB Holdings. I have been briefed that GB Holdings has been confronted with numerous challenges despite the establishment, resuscitation and expansion of mines across the country, which would ordinarily require belts,” said the minister.

“The challenges include stiff competition from cheap imports and limited access to foreign currency to import raw materials.”

He said controlling cheap imports was critical to protect local firms and job retention while growing the economy.

“We, therefore, need to find sustainable strategies and initiatives of supporting our own local industries,” said Dr Gumbo.

“Indeed, only Zimbabweans can unlock growth, unleash potential and employment opportunities for our population.”

GB Holdings acting group managing director, Mr Joseph Gunda, said despite playing a key role in the economy, the company was facing a number of challenges that are crippling operations, such as smuggling and importation of cheap conveyor belts.

“The company is a key player in reviving the economy. We manufacture original products that we export to other countries. We are competitive against South African bonafide companies,” he said.

“Our plea is to have the Government assist in capacitating the company, which is able to save forex and promote local products.”