Zimpapers Logo

Nqobile Bhebhe, Senior Business Reporter

THE gradual revival of Bulawayo industries with special focus on exports would enable the city to reclaim its status as the country’s manufacturing hub, ambassadors have said.

Coming from a background of closure of companies and loss of jobs experienced in the last two decades, the country’s second largest city is now focused on revitalising its key industries, guided by the value chain model.

Speaking to Business Chronicle during a tour of several industries on the sidelines of a recent retreat and strategic planning review meeting for ambassadors and senior managers in Bulawayo, diplomats expressed satisfaction at the revival pace of industries.

They said the quality of products by local firms has the potential to compete favourably with European imported products in countries they are stationed at.

However, they said exporting firms should urgently retool to reduce costs of production by having modern equipment. Issues of branding and packaging of products are also vital for firms to attend to.

Zimbabwe’s Ambassador to Senegal, James Maridadi said there were great opportunities for Zimbabwe products in West Africa.

“It’s pleasing to note that industries in Bulawayo are getting back on stream. We visited Arenel and it is installing new equipment and officials said they are at 65 percent capacity utilisation,” he said.

“This has happened in less than two years. There are great opportunities for such a firm to penetrate west African markets. For instance, Senegal and Guinea are massive net importers of food items to the extent that about 90 percent of products sold are imports.”

Amb Maridadi said Arenel business can compete very well with products imported from France given its high-quality standards.

“That is possible with proper packaging in French and right pricing. I am confident the quality of our products is good,” he said.

“I have been talking to ZimTrade to get hold of samples of some products to showcase them in road shows in Senegal.”

Ambassador Extraordinary and Plenipotentiary of the Republic of Zimbabwe to the Benelux and Permanent Representative to the European Union, Ammon Mutembwa, said it was encouraging to see industries, which at some point experienced viability challenges being revived.

“We were told of good figures on capacity utilisation ranging from 65 to close to 100 percent,” he said.

“Bulawayo was called the Manchester of Zimbabwe due to its massive, vibrant and heavy concentration of industries. The European markets are ready to absorb Zimbabwean products including a wide range of agricultural produce.

“What needs to be attended to is the issue of standards of our products. Through ZimTrade we must be able to identify the markets and attend to issues of volumes required.

“The manufactured goods that are in demand are steel products because Europe is reviving on a strategic understanding outlook. So, there is a possibility that Europe could be looking at Zimbabwe as a possible source of steel, that is a possibility for us to export steel.”

Already, the establishment of a US$1 billion iron ore mining and value-addition industrial park in Manhize, Chirumanzu District in the Midlands is expected to positively impact the country’s extractive sector.

Chinese global investment firm, Tsingshan Group is spearheading the project through its subsidiary, Dinson Iron and Steel Company (Disco), which is expected to start producing carbon steel and related products, with a projected output of 600 000 tons per year, starting October next year.

The local manufacturing sector is expected to grow by 3,7 percent next year on the back of continued Government support, as well as increased value addition and beneficiation.

The Government had put in place various measures to stabilise the economy to create a conducive business environment, which had resulted in improved capacity utilisation in the manufacturing sector from 47 percent in 2020 to 56,25 percent last year.

Big companies in Bulawayo such as diversified Treger Group of Companies, Archer Clothing, Zimplow and United Refineries Limited, Datlabs, Kango Products, Zambezi Tanners, General Beltings and Arenel are emerging stronger.

Zimbabwe’s Ambassador to Algeria, Vusumuzi Ntonga said it was key for industrial revival to be sustained and spread to all sectors of the economy.

“We are inspired by the level of production, quality of products and export capacity. We hope the industrial revival will spread to many sectors of the economy. Firms must urgently look into retooling to cut production costs,” he said.

Diplomats toured Arenel, Archer Clothing and Zambezi Tanners.