The Sunday News
THERE is a growing dangerous perception that industry is completely dead in Bulawayo, the country’s second largest city. This senseless perception has given a picture of a city long frozen in the mortuary in the process whipping the emotions of those who call Bulawayo their home. Such a perception has resulted in many thinking that it is a deliberate ploy to marginalise the people of Bulawayo, something, which is a fallacy and should be treated with the contempt it deserves. Such talk is being advanced by people with an agenda to make political capital out of nothing.
Of course the city is no longer kontuthu ziyathunqa as it used to be but that does not mean that the machines have stopped running in every corner of the city.
Last Thursday, Sunday News was part of a tour of some companies in the city organised by the Zimbabwe National Chamber of Commerce meant to give Reserve Bank of Zimbabwe Governor Dr John Mangudya an insight into the state of the Bulawayo economy, what a revealing expedition. The Governor visited companies such as National Blankets, Archer Clothing, Lobels Bread and Arenel.
It was pleasing to note that while many would want to assume that virtually all the turbines and conveyer belts have stopped in most companies, there are some that are grinding on. Some of these companies are not only running for the sake of remaining open, but are ramping production and planning to put more workers on their books.
Archer Clothing, once one of the biggest employer in the city, is set to more than double its workforce by year-end following the approval of its takeover by Paramount Garments. Such a move will see more than 400 people back at work and we believe this is a sign that companies have refused to be drowned in the chorus of negativity being peddled by those with sinister political agendas.
Archer is not the only company working on turning around its fortunes, Arenel has already bought new equipment for its Mahewu plant while Lobels Bread has added another line to its production unit which has already increased bread output. These are projects that are not only on paper but are in progress showing that while some companies and investors have stood on the grandstand waiting for some referee to blow the whistle to signal that the game is on, others are already in the field and scoring.
Of course like any other company or business right now, these companies can do better with a bit of financial help. We know the Government availed the Distressed Industries and Marginalised Areas Fund which was meant to breathe life into some companies, but the money was not enough, everyone agrees, but it is pleasing to note that a number of firms have managed to move a step up after receiving the money.
However, above all, the performance of some of the companies in Bulawayo shows that shareholders need to think outside the box and come up with ideas and programmes to attract new investment.
Right now other companies hide behind the unavailability and insufficiency of Dimaf but we all know that the Government, which is one of the source partners of the money, is also struggling to meet its own finances.
This, therefore, calls for innovative shareholders who do not have to just sit on the fence and hope that one day the Government will come with a bucketful of money to revive their companies. There is a need to move forward and look for alternative sources.
The case of Archer is a good example. The stakeholders of the company have looked for an investor in the form of Paramount Garments and now things are back in motion.
In five years’ time the new investor has promised to inject $5 million capital and employ more than 1 000 workers.
The $5 million is huge capital which the company could have waited for for eternity to get if they had bought the idea of waiting for handouts.
Other companies must follow suit. Owners of these companies must know that it is better to attract those with the money than to keep holding on to something that is not working.
What help does it bring to boast of owning empty shells. It is better to negotiate with those with the money and see that even if you lose a bit of some shares, the company is running.
The few companies that Dr Mangudya toured showed that it’s not all gloomy. We need to support and copy their efforts and maybe it does not even need heavy Government support to revive the city to its former glory.
But more importantly we remove our hats and bow our heads to some of the companies which have demystified the notion that Bulawayo is dead. The city is alive after all.
