Investment initiative compiles funding needs for city firms

Senior Business Reporter
The Matabeleland Trade and Investment Initiative Network has begun compiling funding requirements of companies in Bulawayo ahead of a visit by South African investors in August. Over 100 companies in Bulawayo have reportedly closed since dollarisation in 2009. MTIIN chairman Donald Khumalo said following the tour by representatives of prospective investors, the local businesses leaders have started compiling information critical to the investors.

“Preparatory work has begun and we’re conscientising each other about the importance of compiling documentation with information such as capacity utilisation, funding requirements,” said Khumalo.

“As we work towards strategic partnerships with the foreign investors, we need to give them pragmatic information on investment opportunities.”
A number of companies among them National Blankets, Archer Clothing, National Railways of Zimbabwe and CSC are in desperate need of funding.
South Africa is Zimbabwe’s largest trading partner.

The setting up of a $40 million Distressed Industries and Marginalised Areas Fund by government and Old Mutual failed to resuscitate the collapsing industries in the city.

Experts believe close to $2 billion is required to address challenges facing companies countrywide.
Khumalo said a delegation of prospective investors was expected in the country sometime in August this year.

“Sometime in August, a high powered business delegation from South Africa will come through and for example if a local company is in steel works it has to provide them (investors) with detailed information about that industry,” said Khumalo.

He said they were seeking to promote investment in the region through partnering investors from the neighbouring country riding on the crest of cordial trade relations existing between Zimbabwe and South Africa.

“The thrust of our approach as an investment initiative is to link local businesses with foreign counterparts through their respective associations. Our role is not to kill the business associations that exist at the moment but to identify a niche for investment,” he said, adding that the luring of investors into the country was being done in sync with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation that the government has proclaimed.

Partnering with the foreign investors, Khumalo said, would go a long way in addressing challenges such as funding, old technology and access to markets that have crippled companies in different parts of the country with Bulawayo being the hardest hit.