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Oliver Kazunga Senior Business Reporter
THE demise of the country’s manufacturing industry since the turn of the millennium has claimed many casualties. Apart from retrenchment of thousands of workers, the collapse of the economy due to sanctions also dealt a huge blow to company owners, especially indigenous business people.
One of the affected figures was Delma Lupepe, a prominent Bulawayo businessman who continues to bear the brunt of liquidity challenges following the collapse of his flagship, Merlin Clothing Ltd a few years ago.
The outspoken businessman, however, believes good fortune lies ahead for the country’s industry if a few steps are taken.
He suggests “provision of a government guarantee in retooling of firms and embracing a local procurement policy” to tackle imports as the panacea.
“Can you imagine, if the government for instance orders its blankets for hospitals, prisons and the army locally, that will certainly assist National Blankets. Taking such a decision doesn’t cost any money.
“Instead of going to tender and getting some briefcase businessman winning the tender and going to China to import blankets, just give the orders to National Blankets so that people can be employed and give the company a chance to survive,” said Lupepe.
He said a similar strategy could be deliberately applied to other strategic firms with the government, as the largest consumer and buyer, taking the lead to curb imports.
“There’s no country that can progress or even succeed without its own industry. Even the oil-rich countries are now trying to set up industries so that they can start manufacturing some of their products. It’s even more important for us who have industries to actually revamp them for we can’t survive without industry,” Lupepe added.
He said the major challenge for most local firms was obsolete equipment against stiff competition from cheap imports.
Lupepe said the government has a responsibility to provide guarantees to facilitate the importation of state-of the-art technology so that firms can retool and become competitive.
“It’s the responsibility of the government to assist companies to import equipment and put in place guarantees. But we understand our peculiar situation because of sanctions. Our government may not be in a position to do that at this moment in time,” he added.
Lupepe, however, said the government should facilitate meetings between local business people and potential investors, including taking them along to international meetings, to achieve the desired growth.
“For example, if the President travels to Japan and other places like that, can’t we take businesspeople there as well so that we meet either financial institutions or industrialists and we discuss possible partnerships and things like that,” he said.
Lupepe said the revival of industries must be treated with urgency by all players.
He expressed optimism that collective efforts and adequate government support would yield the desired turn around and create jobs for thousands of unemployed graduates and professionals.
“We need no further delay,” said Lupepe.
Online Reporter