Zimpapers Logo

Pamela Shumba Senior Reporter
INFORMATION, Media and Broadcasting Services Minister Christopher Mushohwe yesterday said Zimpapers should diversify its business interests and embrace new technology to remain viable. Minister Mushohwe said this after touring the Zimpapers Bulawayo branch to assess the challenges that the company is facing.

The minister, who earlier toured the Zimbabwe Broadcasting Corporation (ZBC) Montrose studios, was accompanied by Zimpapers chairman Delma Lupepe and the group chief executive officer Pikirayi Deketeke.

Chronicle Editor Mduduzi Mathuthu and his deputy Innocent Madonko, Sunday News Editor Limukani Ncube, B-Metro Editor Tumeliso Makhurane, Umthunywa Editor Gugulethu Ncube and Chronicle General Manager Marks Shayamano were also part of the tour.

Minister Mushohwe said it was important for print media houses to expand their media platforms to keep their businesses up and running.

“We’ve to make sure that we take advantage of the prevailing situation. I want to see all the parastatals under my ministry and the government in general conducting business with a profit motivation unless they’re social entities,” he said.

“If they’re in business they must be driven by profit. They must make sure that the government receives returns through dividends.”

Minister Mushohwe said Zimpapers must look at other platforms, even social media platforms, in order to improve its business.

“If the money is coming from the new technological innovations, then we’ve no choice but to embrace them,” he said.

Although he was impressed with The Chronicle’s efforts to keep the business afloat, Minister Mushohwe expressed concern that the branch’s printing press was operating only at seven percent of its capacity.

“I didn’t realise that The Chronicle has a massive operation taking place here. The equipment is obsolete but it produces a very good paper.

“I’m impressed with the quality of the paper. Before you see the equipment you would think the newspapers are printed using new equipment.

“Sadly the capacity utilisation here is only seven percent, which means there’s 93 percent which is unutilised. It doesn’t make economic sense,” said the minister.

He said the company had a bigger printing press in Harare utilising 40 percent capacity.

“We need a marketing strategy that’ll take into account possibilities of some businesses who may want to make use of the unutilised capacity,” said Minister Mushohwe.

He said he appreciated that modern equipment meant some people would lose their jobs but said it was also important for the company to remain in business.

“These people still need to be paid. Why not convert those people into a marketing team that can go out and look for schools who want exercise books printed here. I’m sure a number of schools would be willing to give the company some business.

“The cost of maintaining this equipment is surely much more than the revenue from the seven percent capacity,” said Minister Mushohwe.

He commended the company’s engineers for keeping the old equipment intact under difficult economic circumstances, adding that the government was considering assisting the group in paying some of its debts.

“As the government we’re having discussions with the Zimpapers chairman, the board and the group CEO. They’ve brought in some ideas to clean their balance sheet which is frosted with debt. Some of the debts are constitutional and they want us to help them.

“I’ve looked at the case and I think it’s justifiable and I’ve asked them to do a final representation to spruce up the concept paper that they’ve given me. I’m waiting for the document, which they said would be ready next week. We’ll then see if the government will be able to take over the constitutional debts in exchange for shares,” Minister Mushohwe said.

He also urged Zimpapers to modernise its libraries.

“The library is still with all the files dating back to 1894. We need to digitalise the library. If a fire breaks out here we’ll lose all the rich information that future generations must use by way of research to understand where we came from.”

Shayamano expressed optimism that the company will do well in the coming years after posting a $400,000 profit last year.

“We’ve managed to turn the company around in the past one and a half years and I’m certain that we’re on the right track now. We’re performing well.

“In 2015 we closed the year with a $400,000 profit. In January 2016, which is usually a bad month in business, we were able to post profits too. We consider that as a good foundation for the new year. Last year our January and February performance was poor but I’m glad that this year is different. I can assure you that in five years the Bulawayo branch will be a different place,” said Shayamano.