Antidote for Bulawayo ailing firms

PROMINENT industrialist, Mr Todd Moyo, says the revival of Bulawayo industries could be accelerated through innovation, enhanced access to capital finance and provision for tax incentives, which would breathe a new lease of life to ailing firms.

With the recent re-opening of the Cold Storage Company (CSC) and efforts to recapitalise downstream impact firms such as the National Railways of Zimbabwe, hopes are high that Bulawayo is slowly reclaiming its status as the industrial manufacturing hub of the country.

Cold Storage Company

While several industries are clawing back to meaningful productivity with high potential to create more jobs for locals, according to the Ministry of Industry and Commerce reports, Mr Moyo, an experienced industrialist and chief executive officer for pharmaceutical giant firm, Datlabs, says the recovery process could be accelerated through adoption of key innovative and catalytic interventions.

This includes improving access to capital finance for companies, enhanced financial management within companies and awarding of incentives to key industrial operations, he said.

Mr Moyo said Datlabs was one of the companies based in Bulawayo that has managed to weather the historic storms when other companies were closing down.

“This was made possible by a collective team spirit and successful relationships with our stakeholders, especially the financial institutions,” he said.

“We also successfully introduced new brands and products that did well in the market to generate much needed cash flows for the company.

“In my view those companies that can be revived can do well with access to finance at affordable interest rates. In addition to the above, we at one time benefited from low interest funding, which was at one time sponsored by the Government and CABS and believe that more of such funding could help in the resuscitation of some of our industries in Bulawayo.”

Mr Moyo said it was critical for policymakers and industry leaders to prioritise revival of high-impact entities whose operations could breathe new life on the economy such as CSC, NRZ, textile and clothing firms.

National Railways of Zimbabwe train (File picture)

“There is a need to start by reviving those big state-owned enterprises, which used to be big and based in Bulawayo such as the NRZ, the Cold Storage Company and agricultural processing industries,” he said.

“There is a need to also look at the textile industry to see what is needed to revive these and assist such companies with the potential to employ a high number of people and revive the fortunes of Bulawayo.”

Mr Moyo said reasonable tax incentives should also be introduced for new and revived companies to allow them to realise higher efficiencies and impact positively on the economy.

“Those that are on the land need to do their part by effectively producing for the nation at all times and that we are all focused on making our agricultural production a priority,” he said.

“Other sectors such as mining, financial sectors and manufacturing are very important but agriculture is key to our revival.”

According to Mr Moyo, the local authority must also play a huge role in economic revival by ensuring creation of conducive investment environment.

For instance, he said potential local and diaspora investors may be discouraged from investing if the basic infrastructure is failing with available infrastructure being provided at uneconomic rate levels.

“We also need our local councils to play their part and ensure proper basic service delivery to industrial and commercial companies as well as to the residents of the city,” he said.

“Companies will look at alternative destinations in the absence of local supply of basic services at affordable costs or rather consolidate branch operations in one location such as in Harare.

“We also have diasporans willing to venture into investment in the city but are discouraged if the basic infrastructure is failing and what is there is being provided at uneconomic rate levels.”

Mr Moyo said in the past Bulawayo used to have a well-run local governance system with transparency, accountability and staff willing to assist those wanting to set up investment in the city.

“We need to work hard at regaining that reputation,” he said.

“A well-run Local Government system is key as part of the industrial recovery in Bulawayo.”

Apart from focusing on Bulawayo only, Mr Moyo said it was also crucial to develop industry across the country and called upon all stakeholders to play ball.

He stressed the need to engender genuine trust between business and Government saying policy ideas must be shared in an honest matter for national progress.

“That way we will have long and far-reaching policies to prosper the nation and its people. The sooner we work genuinely together and generate trust between ourselves then the sooner we will see industries everywhere coming back to make national contributions to our economy,” said Mr Moyo.

On retooling, he said the country has skilled people who are capable of identifying appropriate systems and machinery whose presence must be utilised.

“I’m aware that some industries such as the local pharmaceutical and food manufacturing companies have been retooling, replacing old machines and technology and producing much improved products so that they can effectively compete with imports and comply with the very high standards that are compulsory in such industries,” he said.

“I believe that we have skills in the country capable of identifying the appropriate systems and machinery and as we discuss some companies in Bulawayo are quietly retooling and upgrading their machinery. Such companies need the support of everyone for the city and country to prosper.”

Mr Moyo appealed to various regulatory bodies to also play their part by supporting the few operating companies in the city to make breakthroughs and encourage the closed ones to return back into operations.

“At the moment some few operating companies feel ‘they can’t breathe’ from constant and sometimes overzealous audits and monitoring from our regulatory bodies,” he said.

“We all need to realise we are in the same boat and work together to save companies and thereby create much needed employment and create business entrepreneurs.”

Mr Moyo reiterated the need to rope in SMEs and capacitate them to grow and realise their full potential.

He, however, said some industries need to look at completely new systems of production as technology has advanced warning that reliance on old technology will only make such industries less efficient with higher comparable costs.

Mr Moyo noted Government efforts to arrest water problems in the city through projects such as the Lake Gwayi-Shangani construction saying this was critical in attracting investment.

“The water crisis in Bulawayo really needs a permanent solution and an honest understanding by both industry and residents as to what is really happening with water supply to the city.
“We need to communicate effectively as to what is causing our perennial water woes as no one will want to come and invest in a city with a continuous 72-hour shedding at the factory and residences of potential staff.

“It’s discouraging to have the existing water situation year in and year out and we need to work on it and understand the issues involved so that we can all in turn communicate and attract potential future investors. Hopefully the new water initiatives for Bulawayo will eliminate the problem in future.”-chrnicle.cl.zw