adminNgoni Dapira Business Correspondent
MANICALAND haulage transport operators are feeling the pinch of slow-moving business following the collapse of noteworthy large-scale manufacturing industry in the past decade. An investigation by Post Business in Mutare revealed that several long-established transporters in Mutare were reeling from low business fuelled by a sharp increase in transport brokers who are offering ridiculous rates.
Mastrans managing director, Ms Rumbi Masara said the closure of big manufacturing companies like Mutare Board and Paper Mill and Karina Textiles was a huge blow in the region, while the remaining firms like Border Timbers, Allied Timbers, Cairns Foods and National Foods were operating at low capacity utilisation leaving the growing locally based transporters with no business.
“Over the years our local manufacturing industry has been slowly collapsing, but people were not seeing the eventual cross cutting consequences of this to all sectors. Now that there are few operating companies left against a growing demand from local haulage transporters, the pinch is being felt and many transporters have no business,’’ she said.
She said that the low business uptake was mostly affecting transporters with a small number of fleets who cannot compete for the limited transportation tenders.
Ms Masara said however, companies with large fleets had a bargaining advantage.
“Legitimate transporters often have problems when dealing with players in the informal sector and unprincipled transport brokers that choke prices to low rates which are unmanageable,” she said.
She also said lack of a provincial transporters association was a missing link in Manicaland, giving an example of how the Transport Operators Association in Harare helps to regularise such concerns in the sector.
2015 Zimbabwe National Chamber of Commerce Businessman of the Year and Tinmac Motors proprietor, Mr Tinotenda Machakaire said the haulage business operating environment was now harsh and lacked regulation, especially when dealing with the informal sector, particularly players in the timber industry.
“Those in the informal sector want shortcuts and end up dealing with drivers on return loads at non-standard rates that are ridiculous. In most cases the drivers and transport brokers benefit at our expense (transporters).
“This is heavily affecting us in the haulage business and we need sanity to prevail otherwise as formally operating and taxpaying businesspeople, we will also be forced to operate illicitly to stay afloat. In the end Government loses out on tax revenues,” said Mr Machakaire.
Another transporter, Mr Lloyd Mapunga concurred and said there was need for Government to reign in players in the emergent informal sector, who continue to operate below the radar.
“When dealing with formal companies they charge reasonable prices but the problem comes when dealing with informal set-ups in the Small to Medium Enterprises sector, who are now the new economic drivers. Informal companies are illicitly dealing with drivers on return trips. This is a growing concern that we fear will eventually run most of the taxpaying formal transporters out of business,” said Mr Mapunga.
Labour and Economic Development Research Institute economist, Mr Prosper Chitambara said Government failure to control the growing informal sector would result in technical insolvency.
“In our book, “Beyond the Enclave’’ we highlighted this as LEDRIZ. If we do not stop the tide of deindustrialisation and put in place measures to formalise the growing informal sector, then Government will eventually become technically insolvent,” said Mr Chitambara.
He added that the challenges affecting the haulage transport sector in Manicaland were signs of poor control measures to regulate a dominant and growing informal sector.
Mr Chitambara said there was need to create a fair and competitive business environment for both informal and formal business players.
He warned that though conversely the informal sector was positively contributing towards employment creation, its illicit operations would ultimately run out business taxpaying formal companies.
“Government should therefore do more to incentivise players in the informal sector to formalise. There is also need to continue looking for ways to cut the costs of doing business as we generally still remain a high cost nation,” said Mr Chitambara.
Online Reporter