Zim, SA sign pact to revive Byo firms

Business Reporter
ZIMBABWE and South Africa have signed an agreement to revive some of the ailing firms in Bulawayo, an official said yesterday. The city, which was once the industrial hub of Zimbabwe, has in the past few years suffered massive de-industrialisation that has seen about 100 companies shutting down or relocating.

Addressing delegates during the 5th Investment and Trade Initiative (ITI) meeting in Bulawayo, South Africa Deputy Minister of Trade and Industry Mrs Elizabeth Thabethe said Zimbabwe remained a strategic partner to South Africa.

“Zimbabwe remains a strategic partner to South Africa because of the understanding of the potential that lies in this country waiting to be unleashed. I have said it before and I will say it again that Zimbabwe is a sleeping giant and it is the revival of the City of Kings which will awaken the great economy.”

“We (South Africa government) have entered into an agreement with the Ministry of Small and Medium Enterprises and Co-operative Development to look at possibilities to help revive some of the distressed companies here in Bulawayo,” she said.

Mrs Thabethe said the process to revive some of the distressed industries was already under way and this would serve as a catalyst to restore Bulawayo’s industrial hub status.

In an interview on the sidelines of the business event, the Zimbabwe National Chamber of Commerce past president Mr Obert Sibanda said the agreement between the two countries was likely to go a long way in reviving industries.

“Although, I have not got how really this agreement will work, I hope it will go a long way in reviving industries,” he said.
Mrs Thabethe who was accompanied by businesspeople from different sectors from her country said strides had also been made to strengthen bilateral economic relations.

“For instance, in 2012 alone, I led two ITIs (investment and trade initiatives) to both Harare and Bulawayo where I was accompanied by a business delegation with interest in various sectors. I also came back in April 2013 leading a delegation of businesspeople representing various sectors to participate at the Zimbabwe International Trade Fair,” she said.

She said it had become imperative that the relationship between Bulawayo and Polokwane as well as Thekwini in South Africa be taken to another level to foster speedy economic development between the two countries.

She said it was through partnership and collaborative initiatives that the objectives to indigenise, develop the economy and create jobs in Zimbabwe would be realised.

“We hope to attract more investors in the city and urge them to make use of the already available infrastructure although it needs refurbishing.”

Mrs Thabethe said their continental trade and investment agenda was focused on supporting Africa’s economy adding that infrastructure development was vital to achieve the set objectives.

“It is therefore critical that we utilise the advantage of our geographical proximity to focus on targeted high growth markets with the objective of creating investment and  export opportunities for South African companies while simultaneously creating opportunities for Zimbabwe companies to partner with their South African counterparts to advance the export opportunities of Zimbabwean product.”

Speaking at the same occasion, Deputy Minister of Finance and Economic Development Dr Samuel Undenge said the two countries enjoyed strong bilateral economic relations.

“Bulawayo was the genesis of industry in Zimbabwe. In the past, many people came from the rural areas seeking employment in Bulawayo.

“The two countries enjoy strong bilateral economic ties and we believe that South Africa should play a part in making sure that our industries here are revived through this initiative.

“We (governments and business community) are all very keen to revive Bulawayo industry and we share a common vision,” he said.
He said the Government was also working on creating a conducive environment for business to operate.

Dr Undenge said a one-stop- shop investment centre had been created with the objective among others to improve the investment climate in the country.