SIXTY companies in Bulawayo are on the verge of collapse and urgently require US$73 million capital, according to a report by the Ministry of Industry and Commerce.
Gamma Mudarikiri
The number is adding to 85 companies which closed in 2012 as the city continues to de-industrialise.
“The Ministerial Task Force on the revival of industry has revealed that 60 companies are under severe distress and required financial assistance in the form of working capital and capital expenditure amounting to US$73 million,” reads part of the report.
From the companies which closed, 22% were from the clothing and textile sector, 74% from the motor industry and 4% from the construction sector.
Government continues to struggle to avail funds to revive industry in Bulawayo. According to the report, government last year only managed to avail US$5 million from the allocated US$10 million. This fund managed to cater for only 30 companies from the initial target of 45 companies.
“Budgetary constraints militated against availing of the initial envelope, resulting in the eventual reduction of the envelope to US$5 million, which translates to a cut in the number of beneficiaries from 45 to 30 companies,” reads part of the report.
The report said the availed amount would be split to cater for the 13 companies in the clothing and textile industry, representing 31% of the total envelope, five in the food industry, 10 in the metals and electrical industry, five in leather and footwear, four in the motor industry, five in the wood and furniture industry, two in the pharmaceuticals and one company in the packaging industries.
Last week the state media reported that only US$13 million had been disbursed to companies across the country from the US$40 million Distressed Industries and Marginalised Fund (Dimaf).
In Bulawayo, 13 companies are reported to have received funds amounting to US$6,5 million from Dimaf while five more companies are yet to receive a sum of US$2,9 million.
Please lets take these company closers seriously,This means suffering to the families of those whose companies are folding. Allow me to say that Zanu p f has failed Zimbabwean people ,let us call a spade a spade. This was the same scenario in mutare, where we saw the closer of mutare board and paper mills ,Lemco or Tomango ,PG timbers, to mention a few. Mutare has become a ghost town. If they would replace these industries with diamond polishing companies to benefit local communities that would have been better. There is zero in terms of new companies,now its on Bulawayo where everyday there is a company folding its activities. Shame on you guys ,your legacy is failure throughout the country. You preach the opposite of what you say. Instead of empowering Zimbabweans you are digging them into the deepest graves of economic despondency. Now it election time you hear them say we want to lift Bulawayo, Zimbabweans tell these guys to go to hell they are fool of falsehood and thuggery. We want a nation that has hope in the future and not a zanu pf predetermined life. Freedom comes when one is free to work and fend for their own and determine their destination.Aluta continua abasha chikonyoka! Economic freedom a must.
bn born nd bred in byo, it hurts how my town is folding. really gvt isnt doin much, devolution wl surely help this region. it hs so much potential
I have said it and I will say it again. It’s not about Bulawayo. It’s the whole country. The misplaced conception that private businesses belong to private individuals is what has brought this country to its knees. Government is the biggest beneficiary in every private business and the closure of every business means a loss of revenue to government. Can this sink into everyone’s head who wants to be a leader.
The level of incompetence in government is shocking and as long as it continues the country and not Bulawayo will grind to a hault. The example of Mutare is an excellent one and to imagine that all businessess in that beautiful city have closed down and noone is worried just goes to show the kind of leadership we have in this country.
Why honestly would the whole government be concerned about a private ethanol plant and go as far as legislating for mandatory blending(forcing people to buy a product they do not want when so many businesses are closing and noone talks about them. In some cases government is playing a key role in closing those busineseses as what happened to Shabanie/Mashaba mi Mines.
We all need to play a key role in ensuring that our beautiful town is run properly.
Where are the champions of indigenisation to show their business acumen! they should take these companies for free & turn them around. No! They want profitable businesses that they can loot & plunder, & close in 10 years time.
wats happening at Dairiboard , Bulawayo branch. we hear its a building only, all machines have been taken to Harare/.