Investment initiatives key to Byo re-establishing itself as key economic force

BULAWAYO has the potential to re-establish itself as a key economic force in the country through harnessing the dynamic local marketing drive and targeted investment initiatives in partnership with Zimbabwe’s Investment and Development Agency (Zida).

The expected benefits of such initiatives include increased investment, higher commercial property occupancy rates, a boost in investment inflows and the repatriation of expertise from the city’s diaspora community.

Recently, Bulawayo’s council and officials from the Office of the Minister of State for Provincial Affairs and Devolution met with the Brenthurst Foundation, which conducted an economic study of the city.

The foundation shared its findings, which spotlighted both growth opportunities and challenges.
The report surveyed 47 businesses in Bulawayo from April 6 to 18, aiming to gauge their views and experiences concerning service delivery, logistics, utilities, infrastructure, investment climate and public-private partnerships.

Years prior, the city’s industrial sector faced a steep decline, with numerous companies shutting down or moving to Harare, leaving many in Bulawayo unemployed.

However, the advent of the Second Republic and the implementation of business-friendly policies have, in recent years, led to a resurgence of companies and increased capacity utilisation.
Despite its challenges, the city aspires to grow, focusing on internal optimisation and external engagement, the report said.

Externally, the report recommends marketing Bulawayo to Harare businesses, emphasising storage and warehousing opportunities.
It highlights the need for targeted investment initiatives from the Bulawayo diaspora in partnership with Zida and for seeking South African expertise and investment in energy, manufacturing, and mining.

The anticipated outcomes include an increased investment flow, occupancy and sale of commercial properties in Bulawayo and a “brain regain” from the city’s diaspora.

Learning from South Africa, there is potential to fund new renewable energy projects, mining ventures and manufacturing initiatives, the report noted.

Internally, the research suggests formalising a Business Council with a clear mandate and budget to tackle key infrastructure challenges.
The envisaged body would efficiently address infrastructure issues without bureaucratic delays. It is also vital to lead a campaign for licensing informal traders to increase the licensed trader count and to audit the backlog of property titles, promoting the sale or lease of vacant buildings and plots.

The benefits could include an increase in licensed traders, unlocking US$200 000 annually for the council and enhanced sale and use of commercial property by local and external businesses.

The Brenthurst Foundation advised that the council appoint a dedicated interlocutor to liaise with the Business Council, with the authority to implement decisions. It proposes a system where unprocessed investment-related applications are forwarded to the Mayor after 30 days of inactivity.

This would establish a feedback loop for the business community’s concerns and a mechanism for their resolution or escalation.
However, the report notes that an overwhelming 92 and 88 percent of businesses surveyed said water and road networks need attention respectively.

The report adds that 62 percent of respondents said their engagement with the council was poor and 70 percent said the process of obtaining planning permission was difficult.

National University of Science and Technology (Nust) Department of Banking and Investment Promotion economist, Mr Stevenson Dlamini said more efforts are needed to engage in public-private partnerships to speed up the current infrastructure development projects especially in the area of water and sanitation.

“The Bulawayo City Council I believe is engaged in a positive transformation of the city into an ideal investment destination as seen by the efforts underway to improve road infrastructure.

“I think that more efforts to engage in PPPs can go a long way in speeding the current infrastructure development projects especially in the area of water and sanitation,” said Mr Dlamini.

He added that the council can also further improve its efforts through innovative communication strategies that promote resident’s’ commitment to be economic ambassadors of their city.

“This calls for a more robust communication strategy that engages all the stakeholders in the city.”
He noted that in engagements with the business community in Bulawayo, the issue of archaic by-laws always emerges as a major stumbling block to attracting investments both locally and internationally.

“Some of the by-laws predate independence and are retrogressive. Therefore, there is an urgent need to re-align these policy frameworks with the current and future developments initiatives,” said Mr Dlamini.
Association for Businesses in Zimbabwe (Abuz) chief executive, Victor Nyoni stressed the need for the city to improve on its infrastructure security, especially power infrastructure.

“As a city, we need to have tight security on power infrastructure. Investors are worried when power infrastructure gets frequently vandalised.

“As business sector players who interact with potential investors, we urged all security structures including private security firms to bolster security.
Mr Nyoni added that the city should also have a large pool of skilled labour force for investors to tap into.-chroicle