Industry responds to Government support measures 

Nqobile Bhebhe, Senior Business Reporter

THE rapid expansion of industries characterised by installation of additional lines of production is a direct response to Government support measures put in place to stabilise the economy and create a conducive business environment, Finance and Economic Development Minister, Professor Mthuli Ncube has said.

Several firms in Bulawayo are installing additional production lines to increase capacity utilisation.

Notable entities include exotic tanning specialists, Zambezi Tanners which has launched a separate division called “Matobo Tanning”, which specialises in bovine finishing tannery.

National Foods Holdings Limited’s new mill at their Bulawayo site is set to increase wheat milling capacity by 2 000 tonnes per month.

Workers sort out bread at the factory

Other companies such as diversified Treger Group of Companies, Archer Clothing, United Refineries Limited Arenel are emerging stronger.

Riding on the on-going ease of doing business reforms, fiscal support incentives and enhanced access to foreign currency through the Forex Auction System, the Government has pledged that, going forward, more attention will be given to assisting ailing firms and resuscitating some of the closed operations.

In contrast to recent years, where the second largest city suffered massive closure and relocation of big companies, the tide is turning as more companies are now expanding capacity and growing their export footprint.

Prof Ncube said the industry has benefited enormously from the government policies.

The turnaround is happening at a time when the Government is working closely with the private sector to roll out comprehensive economic reforms.

“On the development of industry, we are as a government noticing that industry continues to expand. We are seeing established companies expanding their production lines. For instance, United Refineries are putting additional production lines. 

“Bakers Inn is opening up a new factory in Bulawayo with production capacity of about 8 000 loaves of bread per hour. They will launch in two months’ time,” noted the minister.

Prof Mthuli Ncube

“Generally, industries have benefited enormously from government policies and are expanding. I think that the rate of growth of 2,5 percent for the industry that we predicted for this year might be an underestimate. The growth rate is right across the board and it’s impressive.”

The growth of Bulawayo industries is set to restore the city’s status as the industrial hub of the country with high potential to create more jobs for locals.