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Business Reporters
THE revival of industry in Bulawayo is certain with vast infrastructure investment opportunities earmarked for the city in the form of lines of credit and technical support from China and Russia.
Transport and Infrastructural Development Minister Dr Obert Mpofu and his Industry and Commerce counterpart Mike Bimha were in Bulawayo on Wednesday to outline several key investment initiatives set to boost business activity and create jobs for thousands of people in the southern region.

The oversubscribed meeting organised by Chronicle generated a lot of enthusiasm as ministers engaged captains of industry who threw their weight behind the government’s efforts to unlock the economy’s    potential.

The two ministers, who are signatories to the Chinese deals clinched by President Robert Mugabe during his recent visit to that country, said they successfully tabled major projects running into millions of dollars, viewed as key enablers in the revival of industry.

“We signed memorandums of understanding for loan facilities focusing on bulk infrastructure development, which is key to industry and productive sectors. This is also key to our economic blueprint, Zim-Asset,” said Minister Bimha.

“We agreed to create partnerships between Chinese and Zimbabwean companies. My ministry, working with CZI and ZNCC, is doing preparatory work that businesses in China require in terms of joint ventures.”

He urged different sectors of the economy to urgently avail information on their operations for sharing with Chinese counterparts “who have shown a lot of interest in investing in Zimbabwe”.

Minister Bimha said China had pledged support for Special Economic Zones (SEZ), under which Bulawayo would be declared a manufacturing hub.

He said efforts were underway to establish, with Chinese  support, tobacco processing industries in line with the beneficiation and value addition thrust.

The Minister said the Chinese were willing to work with Zimbabwe on cigarette manufacturing for their Middle East markets.

He also said Russia had agreed to roll out lines of credit for local industry and was seeking partnership and joint ventures in sectors such as food processing, textile, leather and oil industry, which are key sectors for Bulawayo firms.

“What made Bulawayo tick was NRZ and Zisco (now New Zimsteel). These are coming and the direction is there, Bulawayo will go back to its central position as the hub of industry,” Minister Bimha said.

Dr Obert Mpofu said the major upgrading of the railway network and revamping of the National Railways of Zimbabwe (NRZ) would have a catalytic effect on Bulawayo’s economy and downstream industry in particular.

Major highway road expansion projects such as Beitbridge-Victoria Falls and Beitbridge-Harare, he said, would inject life into the economy by attracting investment and creating jobs for locals.

He said while China pledged funding for procurement of NRZ locomotives, the government was also engaged in negotiations with the  Development Bank of Southern Africa (DBSA) for funding of a railway track, signalling system and rolling stock rehabilitation project that will see an injection of between $450 million and $700 million into the NRZ.

Dr Mpofu said there was interest from China on NRZ, but the government wanted to take the present negotiations with DBSA, “which we feel are progressing well” to their logical end.

He said: “The ultimate revival of the NRZ will certainly lead to revival of a considerable part of Bulawayo’s industrial activity because a lot of downstream activities are dependent on NRZ operations.

“We’re aware that part of the challenges impeding industrial regeneration is the state of NRZ, but this will soon be a thing of the past.”

Dr Mpofu said the Victoria Falls airport expansion programme, among the major pioneering projects with China through a Chinese loan facility, was on course.

He said the new 4km runway and the new terminal building were 60 percent and 39 percent complete respectively.

Dr Mpofu said upon completion, the airport would be able to attract more and larger aircraft to the resort town and this should promote tourism and significant downstream industries.

He said government wanted more airlines plying local airports as that would ensure all airports are fully utilised and become a source of economic growth.

Dr Mpofu said projects like the Bulawayo-Nkayi and Bulawayo-Tsholotsho roads would be revisited adding that funds from the recently acquired Limpopo Bridge tolling would be used to repair roads, car parks and other infrastructure within Beitbridge Border Post, and completion of the dualisation of the road from the border at Beitbridge to the Bulawayo/Harare  junction.

City businessman Obert Sibanda said Bulawayo was excited by the proposed infrastructure development initiatives, particularly priority given to the NRZ and other key enablers.

“This meeting has raised our spirits. We’re excited that NRZ is coming on stream. Quite a number of firms that were formed to supply NRZ will benefit.

“As businesses we now need to come up with new business models. Let’s not get trapped on things that have been overtaken by events.”
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