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INDUSTRIALISTS have been urged to engage in strategic business mergers to remain operational as companies continue to consolidate operations in the wake of limited foreign direct investment.
Grant Thornton lead partner, Mr Reggie Saruchera, said several big companies were promising to come out of judicial management through strategic mergers.
“It is not all doom and gloom in the country’s manufacturing sector as some want to highlight out there. As Grand Thornton, we are helping a lot of companies come out of judicial management. We believe it should not be viewed as the end once a company enters judicial management, but it is a reprieve just until the company finds its footing,” said Mr Sauruchera.
He said so far big companies like Cairns Holdings, Blue Ribbon, Thorn Tree Lodge, Boka Auction and recently Micro-King have all come out of judicial management and were promising to take off.
He said the success story of these companies was a combination of many factors, chief among them Government support through strategic policies and for some like Cairns Holdings, assistance through the Government Distressed Industries and Marginalised Areas Fund.
Since dollarisation in 2009 several companies have merged to recapitalise and stay afloat.
Econet Wireless Zimbabwe has since diversified after it bought a 67 percent stake in Mutare Bottling Company, while 33 percent is taken up by the Goldberg Family.
Mr Saruchera added that Zimbabwe’s economic independence and recovery would only come around through innovation.
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