Mayor urges business to restrategise

Many companies were faced with liquidity challenges to boost their production as there were no credit lines or major investments that were coming in the country due to lack of confidence by potential investors.
In an interview, Clr Moyo said there was still a lot of work that needed to be done for the Zimbabwean economy to grow.
“Many companies are still struggling, especially in Bulawayo, to an extent that some are failing to pay their rentals leading to other businesses closing down.

“There is no money in the country and there is little the Government can do because there is no money also in their briefcase,” he said.
He said all that was needed was for companies to capitalise on the little resources they had and continue being innovative to remain operational.
“Many businesses in Bulawayo have closed down and it will take a lot for the city to return to its status as the hub of economic activities.

“Bulawayo has got the potential to grow because we have got the space and we are near all our trading partners like South Africa and Botswana,” Clr Moyo said.
He said Bulawayo had water problems but companies could still cope since the council was always making sure that industries had enough water for them to function.
The mayor challenged businesses to take advantage of the New Year to come up with new strategies for economic growth.

“When industries are doing well we also do well as we heavily depend on them for infrastructural developments because they are also ratepayers.”
Government in May last year set up an eight-member Inter-ministerial Taskforce on Let Bulawayo Survive Campaign aimed at restoring the city’s status as Zimbabwe’s industrial hub.
The taskforce, chaired by Industry and Commerce Minister Professor Welshman Ncube, was also tasked by Government to set up DIMAF following an outcry from the business community that local companies suffered financial services marginalisation in terms of accessing working capital from the banking sector.

As a result of capital constraints, the city has in the past few years experienced massive de-industrialisation that saw at least 87 companies shutting down operations while more than 20 000 workers becoming redundant.

The money is still to be availed to companies for them to address the capital constraints they are faced with.

The fund will allow companies to purchase equipment and raw materials for use in enhancing output, quality of goods being produced and to assist them in meeting their operating costs.
“We hope this year will be a good year for our local companies and we wish the Government could expedite the disbursement of funds for distressed companies for the revival of this city,” he said.