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Minister Bimha

Government is negotiating with the Industrial Development Corporation and the Reserve Bank of Zimbabwe to set up a facility to fund recapitalisation of ailing strategic companies.
Industry and Commerce Minister Mike Bimha told captains of industry and the media ahead of the Confederation of Zimbabwe Industries annual congress in eastern border city that the dire conditions of industries in Mutare required an urgent solution.

Minister Bimha toured the Kenrose Filters, Cairns Foods Mutare, Quest Motors and the Mutare Bottling Company to appreciate their operations and challenges.
The development is expected to mark the initial stages of the revival of industries in the province, which have been operating below 10 percent capacity.

Apart from the diamond and hospitality sectors, the provincial citrus farming, timber and agricultural sectors have declined sharply over the past 13 years when the country was in the throes of debilitating economic challenges.

Several companies that were strategic to the province including Karina and Textile, Lion Matches have either closed down or downsized.
“Our efforts must be directed to revive struggling industries to make sure that we create employment, add value and quality on our locally produced products,” said Minister Bimha said.

He said the Government would let IDC identify strategic companies that needed resuscitation.
“Do not close businesses. We have just started work and you need to be patient enough.

“While we may need new companies on the fold, it is prudent to revive those that are struggling but we must prioritise those that are operational but struggling to meet their targets for economic development,” he said

Minister Bimha did not disclose the amount that would be put in the pool but indicated that the Government would supervise the facility to ensure that struggling companies were revived.

In Mutare, Border Timbers Limited closed two of its factories, vehicle manufacturer Quest Motors is operating at five percent capacity while Cairns Foods was placed under judicial management.

Karina Textiles, Pine Products, PG Safety Glass and newsprint producer Mutare Board and Paper Mills have all folded. – New Ziana.