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AFTER years of hopelessness in the wake of company closures and loss of jobs, a ray of hope seems to be shining on Bulawayo again, ushering prospects of a revived industry.
Once the leading industrial capital, Bulawayo has in the last decade witnessed the closure of nearly 100 established firms that laid off an estimated 20,000 workers citing operational constraints from the macro-economic environment.

However, latest developments in the city’s industry appear to be slowly tilting the scales in the opposite direction.
The few companies that survived the tide such as National Blankets Limited, United Refineries and G and D Shoes have started showing signs of life despite the continued liquidity challenges and harsh operational environment.

From a dark operational background, the giant blanket making firm has defied the odds in its quest for viability.
We report elsewhere on these pages how the company, while under judiciary management, shrugged off its $2.6 million debt last year and last Friday its judicial manager Philip Ndlovu announced the firm was negotiating its way out of judicial management with shareholders confident of its recovery path.

“National Blankets shareholders have voted for the company to be taken out of judicial management so they can run it themselves and they are in the process of putting in a new board of directors and briefing new shareholders that will come in,” he said.

“As a company, when trading under judicial management very few lenders of equity or any funding are keen to deal with you. They would like a normal operating company so those factors have been satisfied now and there is no reason to still remain under judicial management.”

Ndlovu said an application was being made to the Master of the High Court who has approved removal of the company from judicial management, paving way for normal operations.

He said moving from judicial management signals a bright future adding that the company requires $3.5 million working capital to bring back production to competitive levels.

We feel National Blankets’ case is an indication of how the city’s struggling firms, with sound management and focused effort, can achieve operational efficiency and remain afloat despite the challenges bedevilling the economy.

“The future is bright for National Blankets and even for Bulawayo and those other companies that are under similar problems. They can now see that it (exiting judicial management) can be achieved with proper expertise and co-operation from the shareholders,” Ndlovu added.

“It calls for a lot of co-operation between the judicial manager and the shareholders for a company to emerge out of the woods and with the right equipment in place, a company can actually be revived.”

The city is also gradually attracting investors’ attention with council recently hosting several delegates keen to tap Bulawayo’s investment opportunities.

Yesterday, we also reported on a European giant commercial transport firm, Man Group of Trucks, which opened an outlet in Bulawayo on Friday.

Small to Medium Enterprises and Co-operative Development Minister Cde Sithembiso Nyoni and Sport, Arts and Culture Minister Cde Andrew Langa, witnessed the setting up of the new company, named Matabeleland Truck and Bus (MTB) in Belmont.

MTB got a contract to operate in Zimbabwe under the supervision of Man Group of Trucks and Buses, whose products and services range from haulage trucks through city and intercity buses and coaches right up to support and financial services.

Two weeks ago we reported G and D management saying their firm was on the rebound after adopting a unique turnaround strategy targeting the local market.

Economic analysts have said Bulawayo remains a favourable investment destination given its proximity to South Africa, Botswana, Zambia and Namibian markets through rail and road connection network, skilled domestic labour and easy access to raw materials such as coal from Hwange, among other agriculture consumables.

It is estimated that about $500 million is required to re-capitalise city firms and $2 billion countrywide.
Given the thriving informal sector contributing about 67 percent of the city’s revenue, integrated sector approaches can transform Bulawayo’s industry and restore the city’s industrial prowess.

While the government and council have come up with enabling policies such as Zim-Asset, the proposed Special Economic Zones and Dimaf, firms should also come up with strategic turnaround plans to keep their businesses ticking.

It is not all gloomy. Bulawayo can still grow.