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Prosper Ndlovu, Business Editor
THE prevailing stable and predictable macro-economic environment is driving renewed investment interest in Bulawayo evidenced by the spike in industry productivity and revitalisation of value chains linking up with big manufacturing companies.

The close collaboration between the private sector and Government, which has seen more local goods reclaiming shelf space in shops, has enhanced business resilience despite the disruptive impact of the deadly Covid-19 pandemic.

The fiscal reforms undertaken since 2018, as well as investment incentives and monetary reforms, have been credited for bringing about stability that assists expanded operations.

The introduction of the foreign currency auction system, in particular, has made access to foreign currency easier for importation of equipment and raw materials by local companies, economists say.

As the industrial hub of the country, Bulawayo is slowly regaining lost ground after years of failed attempts to reverse de-industrialisation and bring about sustainable business viability.

The mood of the business executives across the divide is optimistic and on Friday and Saturday, during interactions with President Mnangagwa and his ministerial delegation who conducted a tour of some of the city’s companies, industry captains revealed that Bulawayo firms were not dying.

The delegation visited the diversified giant Treger Group of Companies, Archer Clothing and United Refineries Limited (URL), who showcased some of the investment strides being achieved on the back of comprehensive business reforms championed by the New Dispensation.

They stated that Bulawayo’s viability was significant in the broader efforts towards employment creation and realisation of an upper middle-income economy by 2030.

URL is “one of the country’s leading producers of strategic consumer products,” said President Mnangagwa as he commended the company for its continued expansion drive, which involves both upstream activities such as contract and corporate farming as well as downstream linkages with livestock production.

The Treger Group, deemed a shining example of the city’s potential and ability to reclaim its manufacturing glory, has recovered from a crippled past and became a champion of infusion of latest technologies and diversification to meet modern market demands and exports.

This has yielded steady growth of the business in terms of production, capacity utilisation, employment levels, diversity and product range.

“Well done to the Tregers Team,” said the President after the tour.

At Archer Clothing, the visiting delegation was impressed by the company’s growing capacity utilisation and solid export portfolio, which contributes immensely to generation of forex earnings. The company exports 60 percent of its production.

In her remarks Bulawayo Provincial Affairs and Devolution Minister, Judith Ncube, gave an outline of several other local companies that have made notable strides towards revamping their manufacturing operations.

Among these is Sheppco BMA Fasteners, Metal Founders, Kango Products and Arenel. National Blankets, which was closed some years ago, is also set to be revived after escaping potential liquidation, she said.

Sheppco Industries, which operates in the engineering sector has initiated a US$3,5 million new roller plant, which is expected to contribute to import substitution when complete.

To date, a new roller plant valued at US$500 000 has been installed and commissioned while work is underway on the completion of the US$1 million investment into a steel shade.

At Metal Founders, Minister Ncube said the company was in the process of modernising existing machinery and in its first phase of modernisation it has brought equipment worth US$130 000.

In the food sector, she said Arenel Private Limited has two major projects that are running, namely the installation of a carbonated soft drink plant valued at US$1 million and a superstructure for flour meal valued at US$565 000.

Other notable investments are at Kango where the company has invested in an automated robot plant.

“These developments, Your Excellency Sir, are a reflection of the diversity of Bulawayo’s industrial base and the impact of the policies that your Government has continued to put in place in response to the needs of our businesses,” she said.

“These companies you are touring represent an epitome of resilience that has always been the hallmark of not only Bulawayo but Zimbabwean companies,” said Minister Ncube.

She assured President Mnangagwa that more businesses will be revived in the province in the future, which will necessitate the return of the Head of State and Government to come back and commission new enterprises.

“One cannot talk about the industrial hub status of this province without mentioning these companies. National Blankets is being facilitated and is expected to resume operations soon. This brings to the fore matters of employment creation, import substitution and growth of exports, which are targeted under NDS1,” said Minister Ncube.

“The 2nd Republic under your leadership sir, is commended for the economic policies and reform programmes that have played a major role in strengthening and sustaining the industry and commerce sectors.”

The aggregated capacity utilisation potential across the city’s industry points to Bulawayo’s rising potential to contribute to growing the Gross Domestic Product of the country.

Already, capacity utilisation in the country’s manufacturing sector increased by 10,6 percent to 47 percent in 2020, according to a recent Confederation of Zimbabwe Industries (CZI) report.

Minister Ncube acknowledged the role played by the Ministry of Industry and Commerce in facilitating a programme to resuscitate industries through development of value chains, enhancing retooling and new investments.

“The Ministry of Industry and Commerce provincial office has been mainly facilitating the rebate applications for these companies in their retooling initiatives and purchase of new capital equipment,” she said.

“This is a most welcome development as we implement the NDS I (National Development Strategy), aimed at realising Vision 2030. Already several companies are benefiting under the ministry’s programme of resuscitation.”