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In a telephone interview from Harare, the director of Enterprise Development in the Ministry of Industry and Commerce, Mr Stanslaus Mangoma, said the companies were selected last year by the taskforce team on the “Let Bulawayo Survive” campaign.
He, however, could not give the names of the companies, saying that information was confidential.
“We have submitted the names of 58 companies from different sectors of industry to CABS for them to access funding. These companies were identified last year by the taskforce team,” said Mr Mangoma.
“The list includes all the companies that approached us for assistance. Some of them approached us as early as March last year while others came later.
“The list we submitted is based on the interviews we made with the concerned companies on the grounds of confidentiality. However, the decision to give funding lies with the bank.
“We also cannot give you the names of the companies because that is confidential information. If CABS is prepared you can approach them and they will give you.”
Last week Industry and Commerce Minister Professor Welshman Ncube announced that the Government had approved the disbursement of Dimaf and his office had already submitted the list of companies to CABS.
CABS is the Government’s agent in the disbursement of the fund.
Prof Ncube said the revival of the city’s ailing companies was certain. He quashed sentiments that the fund had been thrown into doubt.
Prof Ncube said his ministry communicated the development to the beneficiaries adding that the issue was now between the companies and the bank.
This is despite widespread frustration by Bulawayo businesses over delays in the release of the funds.
A number of city industries opened last week after a holiday break amid reports that some failed to do so because of financial challenges. Most businesses are pinning their hopes on the fund to revamp their operations after closing shop due to the biting operational constraints.
Prof Ncube reiterated Government’s commitment towards restoring Bulawayo’s status as the industrial hub of the country.
He said there was a need to tackle the challenges facing the city’s industry one by one and underscored the importance of improving power supply, provision of lines of credit, review of the tariff structure and rehabilitation of ageing machinery.
Businesses on the other hand contend that the $40 million is not enough to bring a significant turnaround of the city’s economy.
Suggestions are that more than $1 billion is required to restore Bulawayo’s status as the country’s industrial hub and create more jobs.
The Government has projected that industries in the country would achieve 80 percent capacity utilisation by the end of this year from last year’s 57,59 percent.
Bulawayo has experienced increased job losses in the past years that have been attributed to the closure and relocation of companies to other cities, especially Harare.
Finance Minister Tendai Biti launched the $40 million under Dimaf in October last year following recommendation by the taskforce on the “Let Bulawayo Survive” campaign.
However, for the past three months, the fund has been mired in controversy amid bickering in the Inclusive Government with some saying it was not meant for Bulawayo companies alone.
President Mugabe in his remarks during the Zanu-PF conference last year in December also said although the Government agreed to set aside funds for the revival of industries in Bulawayo, the stalemate in the Inclusive Government had stalled progress towards its disbursement.
Online Reporter