via Govt turns to private sector – NewsDay January 16, 2014 by Tarisai Mandizha
GOVERNMENT has turned to the private sector for solutions as deindustrisation intensifies on the back of liquidity constraints biting the economy.
Speaking at an economic outlook symposium organised by the Mandel Training Centre and the Gordon Institute of Business Science (GIBS) 2014 economic outlook symposium in Harare yesterday, Industry and Commerce minister Mike Bimha yesterday said there was an urgent need to recapitalise the local manufacturing sector amid concerns that some firms could be facing imminent closure.
He said credit should be extended to companies that have viable business models. Experts say most companies have struggled to replace pre-independence machinery, relegating their competitiveness.
According to the Confederation of Zimbabwe Industries (CZI)’s latest Manufacturing Sector Survey, capacity utilisation declined by 5,3% from 44,9% in 2012 to 39,6% in 2013 due to numerous challenges facing the industry.
“Do we have to resuscitate everyone who is dead? I don’t think so. Probably there are some who have reached the end of the circle, but it’s again not for government to decide.
“I invite the private sector. Let’s prioritise who should be resuscitated and who should be left,” Bimha said.
Bimha said government had engaged local financial institutions for funding to revive the manufacturing industry.
“Previously, we have had very fruitful discussion with our local financial institutions for funding to revive the manufacturing institutions,” Bimha said.
He added that government had also made a decision to reconfigure and re-capacitate the Industrial Development Corporation (IDC) to focus more on industrial development.
“A decision has been made also with IDC. IDC will be reconfigured and capacitated to focus more on industrial development . . . The institution will now facilitate industrial funds,” he said.
He added that government was also in discussions with Common Market for Eastern and Southern Africa (Comesa) with the assistance of the PTA bank to fund for the resuscitation of the Bulawayo industries.
COMMENTS
This clown is asking private companies for help and another is demanding 51% shares from them . WHAT IS GOING ON HERE ZANU. Your are clueless for sure . Any first year student can see this. Wake up my Zimbabweans this is now a joke and if nöne of you can see it now I give up .
What do you expect from a cabinet that could be duped into believing that refined diesel flows out of rocks !
Most Zimbabweans would not trust them to run a burger van in Harare city centre, let alone an economy!
A note to all white company owners. If your company is not doing well please increase your capital so that it is worthwhile for the government to take a 51% share. Contact the IDC for investment opportunities.
We urge all people with ailing companies in Zimbabwe, especially those considered to be foreigners (read enemies) to plough more capital into your businesses. ZANU PF wants to grab 51% of them when they are lucrative and can bear some money for the big boys. Once dead, they will probably just leave you alone. although you can ressurectafter 2018.
Mere intentions only. We will do this we will do that and nothing ever materialises. This has been going on for the past 10 yrs or more. Just tell us what you have done and not what you intend to do.