adminTHE Manicaland business community has implored Government to put a lid on the imports syndrome in the country for the continued existence of the local manufacturing industry.
This was said on Wednesday during a tour of the Nyakamete Industrial Area by the Minister of Industry and Commerce, Cde Mike Bimha.
The tour was part of the three-day Confederation of Zimbabwe Industries congress programme.
The minister toured three distressed companies — Kenrose Filters, Cairns Foods and Quest Motors — whilst Mutare Bottling was toured as a success story.
The managing director of the oil filters manufacturing company, Kenrose Filters, Mr Kenneth Dziruni, said there was no country that ever developed without industry, which is why Government should protect local industry.
“I built this company from scratch in 1990 and worked hard as an indigenous entrepreneur to get it on track. The company was recently valued at $6 million, but it is not my intention to sell. However, with the current challenges of cheap imports from China and Dubai that have flooded the market, business has been down.
“Why flood imports that can be produced locally with the same standards and relatively affordable? As industry we need Government to step in and protect us somehow . . . Should our educated children go on the streets with their degrees to sell airtime when industry is there?
“Honourable Minister, we are begging you to save us. I remit taxes to the Government as a formal company and of which this is what Government is calling for,” said Mr Dziruni.
Cde Bimha said the Zimbabwe agenda for Sustainable Socio-Economic Transformation talks of the resuscitation of key industry as a priority.
He said a lot was being done including sourcing of funds which will be channelled to the Industrial Development Corporation of Zimbabwe for the resuscitation of selected key companies across the country.
“There is a programme by the IDC which is assessing all the hard-hit companies in need of re-capitalisation countrywide both private and public companies.
“Government currently has no money, so as we are outsourcing for funds, when we get them the IDC will avail these funds to the distressed companies in their database, and Kenrose Filters is definitely one of those companies after what I have seen here,” said the minister.
Cde Bimha, however, advised local companies to enter into mergers in the wake of liquidity constraints.
“Companies should also consider majors as a survival mode. As Government we have since created a platform through our ministry that can advise on possible majors, either with Government or foreign and local investors.
“I am, however, optimistic about the future and urge you to stay strong as we are working flat out to get the economy back on track. Indigenisation is about empowering the locals like you and that is what we want to ensure under ZimAsset,” said Minister Bimha.
The operations manager of Cairns Foods Mutare, which is under judicial management, Mr Joseph Mavhu, said they were currently operating at 25 percent capacity utilisation but had great potential if they retool and increase productivity.
Cairns Foods Mutare is currently producing just two products, Sun Jam and baked beans.
Mr Mavhu said they were currently importing the white pen beans from Malawi which increases their production costs, whilst their equipment was old and needs about $4,5 million for recapitalisation.
“We used to employ about 600 people, but we currently employ about 80. If we re-capitalise and go back to normal we will employ about 300 employees because we would have mechanised.
“As Cairns Food, we just want a fair playing field and want Government to be vigilant of our porous borders where goods come in duty free and are sold cheaper or where some products are dumped and sold cheaply at ridiculous prices as some form of economic sabotage,” said Mr Mavhu.
Mr Mavhu added that if the issue of influx of cheap goods and competitiveness of local industry was dealt with then local industry would build up.
Cde Bimha said the issue of protectionism was being looked into and the engagement with Southern African Development Community countries has already begun.
“We have trade protocols in SADC which we are signatories to as a SADC member state. There was a technical meeting recently in Botswana two weeks ago and we will be having another one soon.
“The dumping issue will be resolved at a bilateral level. The Mutare Bottling Company is a clear-cut example of the potential local industry has once retooled.
We have the basic infrastructure and skills in Zimbabwe which is what is critical. The issues of funding and uptake (market) can be resolved which is what we are working on. So I am happy to see the private sector eager to work with Government as we all strive to grow our economy,” said Cde Bimha.
The CZI congress, which ends today (Friday), started on Wednesday and was running under the theme “Taking Zimbabwe’s Industry to the next level”.
Online Reporter