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Mr Walter Chigwada

Oliver Kazunga, Senior Business Reporter
BULAWAYO companies are gradually recovering despite the difficult economic conditions with improved performance having been recorded in the last few months, an official has said.

Confederation of Zimbabwe Industries (CZI) Matabeleland Chamber president Mr Walter Chigwada said a number of initiatives being implemented by the Government were impacting positively on local industry revival.

“A raft of policy initiatives that have been implemented by the Government have impacted positively on Bulawayo companies.

“The factories’ throughput has increased,” said Mr Chigwada.

“The recently announced Statutory Instrument 64/2016 has seen some Bulawayo factories recovering their throughput that had been on the lower side for a long time.

“For example, the SI has helped Bulawayo companies in the agro-processing sector to improve their factories throughput. However, we believe it is early days to actually measure the increase on throughput as has been helped through SI64/2016.”

The mining linkages committee that has been set up within the CZI is also an initiative that companies in Bulawayo are hoping will improve the operations of the city’s firms.

“Bulawayo has a number of industries that supply the mining industry with various products and through the mining linkage committee that has been established within CZI, we are looking forward to seeing mining companies procuring some of their accessories locally,” he said.

CZI president Mr Busisa Moyo is on record as saying mining houses were spending about $1 billion annually on procurement with an insignificant portion of that amount being spent locally.

The industry representative body has said they are advocating for the mining sector to spend locally at least 20 percent of its annual procurement expenditure.

Despite massive de-industrialisation Bulawayo has gone through in recent years, some existing companies such as United Refineries, Bakers Inn and National Foods have improved on their factories’ throughput with capacity utilisation increasing above 60  percent.

Some of the challenges that have faced local industries include obsolete technology, shortage of working capital, and stiff competition from imported products.

@okazunga