$40m Dimaf fund released  . . . Govt submits list to agent for disbursement

He could not be drawn to disclose the names of the companies in the list, saying he did not have them off hand.
Prof Ncube reiterated Government’s commitment towards restoring Bulawayo’s status as the industrial hub of the country.
He said there was a need to tackle the challenges facing the city’s industry one by one and reiterated the importance of improving power supply, provision of lines of credit, review of the tariff structure and rehabilitation of ageing machinery.

“All these factors affect the operations of industry. Concerning the lines of credit we are in discussion with CABS to take into account that these companies are not healthy, they are distressed.
“The Government is sincere over this issue. We want to ensure that their rules consider the plight of industries and that is why we are taking longer,” said Prof Ncube.
“In fact, the $40 million is very little as the city’s industries need close to $1 billion. What is required is to be strategic, prioritise and identify the companies that will create jobs faster and help other down stream industries to grow.”

He said he was optimistic that by the end of the year industries would be operating at 80 percent capacity utilisation from last year’s 57,59 percent. 
However, labour bodies and business associations said prospects of improved industrial production were elusive.
Although they could not give the names of companies that have failed to open, the business said the Government’s delay to release funds for Bulawayo firms was regrettable.

“The future is bleak for Bulawayo companies and workers. Most firms have not opened after the holiday break because they still do not have money for recapitalisation.
“Companies in this city are dead. Even those that were productive before closing for holiday will struggle to operate this time because they supplied shops, which failed to yield the expected returns,” said Dr Ruth Labode, the Confederation of Zimbabwe Industries (CZI) president for Matabeleland region.

“We are very frustrated about delays in the release of the $40 million which is long overdue. This is a vicious cycle and the Government should take this issue seriously.”
Prominent Bulawayo businessman and economic commentator Dr Eric Bloch also said there was no way in which companies would grow without re-capitalisation.

“The prospect of improved industrial production is very small. Almost all the companies in the city are under-capitalised and have liquidity challenges. The companies would continue struggling,” said Dr Bloch.
He concurred with Prof Ncube that the $40 million was not enough to bring significant turnaround in the firms.
Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland regional manager Mr Bulisani Ncube, while expressing optimism, said funding was critical in achieving meaningful turnaround.
“This time around we expect this Dimaf scheme to materialise so that companies can tick,” said Mr Ncube.

National Engineering Workers’ Union (NEWU) regional director Mr Paret Ncube said the issue of company closures demands urgent attention from Government.
He said workers were not convinced by some of the reasons for company closures and re-location.
The Zimbabwe Congress of Trade Union (ZCTU) and the Zimbabwe Federation of Trade Union (ZFTU) leaders have also sung in unison with business association in calling for the urgent revival of Bulawayo companies.

Bulawayo has experienced increased job losses in the past years that have been attributed to the closure and relocation of companies to other cities, especially Harare.
Finance Minister Tendai Biti launched the $40 million under Dimaf in October last year following the recommendation by the taskforce on the “Let Bulawayo Survive” campaign.
However, the fund has been mired in controversy amid bickering in the Inclusive Government with some saying it was not meant for Bulawayo companies alone.

President Mugabe in his remarks during the Zanu-PF conference last year in December also said although the Government agreed to set aside funds for the revival of industries in Bulawayo, the stalemate in the Inclusive Government has stalled progress towards its disbursement.

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