admin
Oliver Kazunga Acting Business Editor
SEVEN companies in Bulawayo were last year placed under judicial management while three others were in liquidation, further evidence that city firms critically require funding to rescue them from operational challenges.Information obtained from the High Court in Bulawayo also shows that five other companies had their cases pending.
Geozing Pawn Brokers, Duze Oil and Walters Bakery were put in liquidation last year while Ocean Park, trading as Tashas Supermarkets, Partec, Polyfoil Zim, Paramount Motors, Totamela Enterprises, Apple Groove Invest, and Lazen Bury Engineering were placed under judicial management during the same period.
At the beginning of last year, the High Court revealed that about 20 firms in Bulawayo had been placed under judicial management since 2010 while 10 others were in liquidation.
Textile giant National Blankets, Tabs-Avon Lighting, Asmara, Belmont Leather, Textile Mills, Security Mills, and Archer Clothing are some of the companies that were placed under judicial management in the past five years.
Bulawayo, once industrial hub of Zimbabwe, has in recent years suffered the worst de-industrialisation compared to other parts of the country due to liquidity constraints and illegal sanctions that continue to weigh down economic recovery.
Obsolete equipment and power challenges are some of fundamentals that have worsened the situation facing city industries.
In 2011, the inclusive government set aside $40 million under the Distressed Industries and Marginalised Areas Fund with Bulawayo being made the first priority in terms of industrial revival.
However, because of political bickering by parties in the inclusive government, Bulawayo industries have not benefited much from the facility as most of the companies did not get it.
Presenting the 2014 national budget last month, Finance and Economic Development Minister Patrick Chinamasa allocated $130 million for the revival of Bulawayo industries and construction of the much-awaited National Matabeleland Zambezi Water Project.
He said through the Zimbabwe Agenda for Sustainable Social-Economic Transformation, the Government was committed to resuscitating distressed and closed companies with a view to increasing capacity utilisation to optimum levels.
“The resuscitation and growth of the manufacturing sector is premised on consistent availability of electricity and water, concessional finance and access to capital equipment for re-tooling, among others,” he said.
“In support of efforts by the local industry to re-tool, government has zero rated capital equipment for duty purposes. Furthermore, a 90-day Value Added Tax deferment facility is available for the importation of industrial and capital equipment by companies in the mining, agriculture, manufacturing, and health and aviation transport sectors,” said Minister Chinamasa.
Online Reporter