City identifies 15 sectors for Special Economic Zones

14 Jan, 2018 - 00:01 0 Views
City identifies 15 sectors for Special Economic Zones Part of CSC complex in Bulawayo

The Sunday News

Part of CSC complex in Bulawayo

Part of CSC complex in Bulawayo

Wilson Dakwa, Business Reporter
BULAWAYO’S Special Economic Zones (SEZs) committee has identified 15 sectors which need to be supported to stimulate the city and the country’s economic growth.

Bulawayo has initially been designated as the beef and leather value chain and textiles and clothing SEZ.

However, a sub-committee of selection has identified 13 more sectors which should be considered under Bulawayo’s SEZ and these are namely education, innovation and research hub, pharmaceuticals and healthcare sector, transport and logistics (mainly as an enabler), engineering (with focus on steel and foundry as an enabler), rubber and plastics, printing and packaging, tourism and hospitality (focusing on Bulawayo’s MICE — Meetings, Incentives, Conferences and Exhibitions) activities that have the capacity and ability to host conferences, and exhibitions, creative arts and culture industries sector, wood and furniture sector , information media and media service, agro-industry and horticulture, and minerals value addition.

According to a report by Bulawayo’s sub-committee of selection of sectors, Zimbabwe and Bulawayo in particular has seen a great decline in manufacturing capacity with many companies moving to other towns, especially the capital, Harare.

“Beef and related products sub-sector was one of the mainstays of Bulawayo’s manufacturing activities with the main CSC EU (European Union) certified abattoir located in the city. This abattoir has an installed capacity of 2 500 cattle a day and several hundreds in capacity of smalls (stock) slaughter as well. The CSC also has a by-products processing unit which is currently out of commission.

“The CSC also owned a meat canning facility which is also currently not operating. There are also several other abattoirs dotted around the city making the beef sub-sector a very strong economic sector for SEZ status in the city. Bulawayo peri-urban has both livestock and dairy activities that can support the sector in terms of input i.e. the animals for slaughter and for the supply of milk,” read part of the report.

The leather value chain sub-sector in Bulawayo and its environs is also home to four major tanneries processing hides and skins to wet blue as well as finished leather stages.

“These tanneries are supported by leather footwear and leather goods manufacturing companies including SMEs that utilise the output from the tanneries. There is a very good export market for value added processed hides and skins the main markets being South Africa, Italy, and China. This sector presents a strong case for investment opportunities that can generate exports,” read part of the report.

The report further states that during Bulawayo’s hey day as an industrial hub it used to boast of four major textile manufacturers, namely Merlin, Cotton Printers, National Blankets and Textiles Mills Holdings.

“Most of these are either closed or operating at very insignificant levels. With the right investment in re-tooling, market refocusing this sector presents an attractive opportunity under the SEZ arrangement. There is particularly high demand for spun yarns in the regional markets especially in South Africa,” read the report.

The document further reads that Bulawayo’s clothing sector has the potential for growth as it requires nominal capital. .

“Similarly the clothing sector in Bulawayo used to be one of the most vibrant sub-sectors producing a wide range of products from kiddies wear, ladies fashion wear, work wear, suits among others. There is still a lot of factory space available for clothing operations.

“This is a sector that may be considered the easiest to re-start as the capital investment required to start and run a clothing factory are not very high.

This is a sector that may be considered as the low hanging fruit”.

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds