Chronicle Editor
Sikhulekelani Moyo, [email protected]
DESPITE the challenges faced by local companies, including unfair competition from cheap imports, they are making significant strides in investing in new equipment to boost capacity.
Yesterday, Industry and Commerce Minister Mangaliso Ndlovu toured Zimplow and Direct Publishers Media in Bulawayo. He stated that the aim is to engage with industries to understand their concerns and develop relevant policies and budgets.
In an interview after the tour, the minister said that the Government is working tirelessly to ensure that industries have a conducive environment, promoting growth and industrialisation of the nation.
“We had an opportunity to visit two factories in Belmont and the main purpose is to appreciate the state of local industries, we have been doing a lot of these across the country as this will help us in crafting policies, but more importantly on working with the private sector to find ways which we can grow our local industries.
“I’m happy to say that over the years, we have been seeing some remarkable investments into latest technologies, we saw some of the farming implements that have come in, they are retooling, replacing old equipment which is what our President has been advocating for to say let us modernise our manufacturing,” said Minister Ndlovu.
He underlined the importance of understanding the challenges faced by companies and how they can be supported at the policy level to ensure that their investments yield positive results.
The minister noted that the uptake of the Zimbabwe Gold (ZiG) by local companies has been promising. However, he stressed the need for greater protection to help the industry withstand competition from cheap imports.
Among the challenges raised by companies is the shortage of foreign currency. They highlighted the need for local currency but are struggling to access foreign exchange from local banks, which is essential for importing raw materials.
Millie Brand’s operations manager, Special Musoni, stated that they have invested in new machinery to support their transition from solely supplying agricultural implements to introducing new products for the mining sector.
He mentioned that their primary target market is the local market, which is, however, being adversely affected by cheap imports.
Musoni informed the minister that their sales have declined significantly, achieving less than 50 percent of their previous sales figures, as imports from China and India continue to undermine local businesses.
Direct Publishers, Managing Director Bradley Beale highlighted that piracy has severely impacted the publishing industry. He noted that since March this year, their sales have dropped by about 80 percent. Beale pointed out that books are being smuggled into the country from South Africa, Zambia, and other nations, emphasising the need for a holistic approach by the Government to protect local industry.
“The piracy issue is affecting business on textbooks and we have cheap textbooks which are being imported into the country. We have invested in the past 24 months and it’s key for us to upgrade in terms of technology so as to remain relevant,” he said.
Beale revealed that Direct Publishes invested more than US$1 million in new machines which he said will assist them to improve production.
Despite challenges, including the Covid-19 pandemic, Bulawayo is experiencing a strong business recovery, evidenced by improved capacity utilisation and increased exports from several local companies.
Leveraging ongoing ease of doing business reforms, the Government has pledged to focus more on assisting struggling firms and reviving some of the closed operations.
Unlike recent years, when the city faced massive closures and relocations of major companies, the tide is turning. More companies are now expanding their capacity and growing their export footprint.
This turnaround is occurring as the Government collaborates closely with the private sector to implement comprehensive economic reforms under the “Zimbabwe is open for business” drive.
Major companies in Bulawayo, such as the diversified Treger Group of Companies, Archer Clothing, Zimplow, United Refineries Limited, Sheppco BMA Fasteners, Metal Founders, Datlabs, Kango Products, Zambezi Tanners, General Beltings, and Arenel, among others, are emerging stronger.
Minister Ndlovu was accompanied by Deputy Minister Raj Modi and the Ministry of Industry and Commerce Bulawayo Province Acting Director, Mrs Mary Chingonzoh. − @SikhulekelaniM1.
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