adminLovemore Zigara Midlands Correspondent
MIDLANDS Show Society president Pasca Muringani says big corporates and institutions should partner small business players to stimulate economic growth and revive industry.
In light of the harsh economic environment affecting the country, he said big corporates such as mining conglomerates – Anglo-Platinum owned Unki Mine, Zvishavane based Mimosa Mine and Murowa Diamonds, which is a subsidiary of Canadian based miner Rio Tinto — should channel part of their huge spending power towards recapitalising downstream industries.
“There’s a need for politics and business to be on the same level without one blaming the other. We can change our situation at a local level without waiting for some outsiders and if you tap in different ideas, they’ll work at national level,” Muringani.
“All the mining companies and other corporates, which are viable, should take a deliberate approach to support our own businesses in the province.
“There’s the Midlands State University here, which has huge spending power and there is a need to use that purchasing power to transform the Midlands economy. That can benefit small businesses which will result in employment creation and economic growth in the province.”
Kwekwe-based fertiliser manufacturer Sables Chemicals is one of the institutions in the province which can also stimulate economic growth.
While the government has gone a mile in protecting industry through a raft of import and export measures, Muringani said more still needs to be done.
He said the government needs to appreciate that production costs in the country were still relatively high hence the need to have a policy to force companies to purchase locally if such products are produced in the country.
“Businesspeople aren’t stupid that they’re selling their products at higher prices than imported products. It’s just that we’ve high production costs so the government should actually appreciate the local players by further protecting them.
“The government should force big companies to purchase locally so that local manufacturers can grow and retool to produce at the same level with our Chinese counterparts. If that doesn’t happen people will shut the factories and simply import and resell and this will result in people being thrown in the streets,” he added.
Meanwhile, a Midlands business conference has already been lined up for next month to explore ways in which the province’s economy can benefit from the mega deals that President Robert Mugabe clinched during his visit to China last year.
The conference has been slated for April 10 and will see captains of industry as well as government ministers and Vice-President Emmerson Mnangagwa, who is also the patron of the Midlands Agricultural Show, making presentations on how to turnaround the economy.
The Midlands used to be a strong industrial force with big entities such as Zimbabwe Castings and Kariba Battery Manufacturers, among others which are now white elephants.
Zimbabwe Glass Industries and ferrochrome processor Zimbabwe Alloys are under judicial management while some companies are operating below optimum capacity due to a myriad of challenges such as lack of working capital and obsolete equipment.
The New Zimsteel deal, which was expected to breathe life into the entire economy, has not yet been operationalised four years after its signing.
Bongani Moyo
Online Reporter