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Rumbidzayi Zinyuke Manicaland Bureau
As the year 2019 ends tomorrow, businesspeople in Manicaland will want to forget it in a hurry.

They have described it as one of the toughest for them, and the rest of the country given the challenging macro-economic environment characterised by skyrocketing operational costs on the back of austerity measures implemented by the Government under the Transitional Stabilisation Programme (TSP) to re-jig the economy. The austerity measures have since been relaxed as the economy moves into the production phase.

Most industries in Manicaland have been operating at below 30 percent capacity utilisation due to a myriad of challenges, principally foreign currency shortages and electricity outages.

An adjustment of the power tariffs late this year has also piled pressure on the manufacturing sector.

In a recent wide-ranging interview with our sister radio station, Diamond FM, Confederation of Zimbabwe Industries (CZI) national council chairman for trade development and investments promotion Mr Henry Nemaire said 2019 had been a bad year for business.

“Lack of power has affected production. Without power, companies could not irrigate so we could not produce and, subsequently, there was a drop in production,” he said.

To overcome the challenge, some companies have been opting to use solar power, a more reliable and cleaner source of energy than thermal power.

But this option has its own drawbacks.

Mr Nemaire said solar had become the in-thing and most companies were setting up solar power plants.

However, the biggest challenge being faced by companies was getting licences, particularly those for independent power producers.

Mr Nemaire urged the Government to look into the high costs and bureaucracy associated with obtaining licences, which he said cost up to US$300 000, for companies willing to invest in solar energy.

But beyond the challenges that most companies battled with, Manicaland businesses bore the brunt of Cyclone Idai, which hit Zimbabwe’s Eastern Highlands on March 15 and caused extensive damage to infrastructure and killed 350 people.

An equal number are still missing after they were swept away by heavy  floods and their relatives are yet to get closure.

Cyclone Idai cost businesses about US$7 million, amid indications the figure could be higher if SMEs are included.

Agro-based industries including Border Timbers, The Wattle Company, Allied Timbers, Manica Boards and Doors, tea giant Tanganda, banana producer Matanuska, and diversified conglomerate Ariston Holdings, among others, were badly affected by the disaster.

A report on the state of industries in Manicaland after the cyclone indicates that Allied Timbers suffered the biggest loss estimated at US$4,5 million; Border Timbers (US$1,5 million); The Wattle Company (US$1 million).

In June, Border Timbers said its lumber production in the nine months to March 31, 2019 went down to 52 889 cubic metres from 65 686 cubic metres in the same period last year mainly due to general power outages and Cyclone Idai.

Matanuska Zimbabwe, incurred a US$81 687 loss while Makande lost US$240 000 worth of infrastructure and products.

However, despite the setback, it is not all doom and gloom as some of the companies have covered considerable ground in turning around their operations.

In October, State-owned timber processing firm, Allied Timbers, acquired machinery worth US$550 000 to take the company out of the woods.

The machinery included five 20- tonne haulage trucks, four tractors and a compressor.

Three of the trucks were meant for Erin Forest plantation in Nyanga and two for Gwindingwe plantation in Chimanimani.

Allied Timbers has been reeling under low capacity utilisation over the years, owing to obsolete machinery, low replanting rate and uncontrolled fires mainly caused by illegal settlers.

Another positive development happened in January where Hotspeck, a subsidiary of the Rural Electrification Fund (REF), secured a pole treatment deal with a Mozambican company, which was expected to be instrumental in generating foreign currency.

Another significant milestone was the diversification by Eastern Highlands Plantations Limited (EHPL), which has committed more than $6 million in a new venture that will see it replacing 500 hectares of tea with macadamia trees.

EHPL is one of the largest tea producers in Zimbabwe, with close to 2 000ha under the beverage crop.

Commercial tea producers want Honde Valley to be considered for Special Economic Zone (SEZ) status to create an environment conducive for investment into value-addition of tea and other horticultural products.

If granted, this is expected to attract more investment into the area that is renowned for its production of fruits and vegetables.

The granting of SEZ status to Honde Valley would complement the Gemmology Centre, which was granted SEZ status last year.

The Gemmology Centre is a project that will involve value addition of diamonds being mined in Chiadzwa and will be subdivided into four sections: the School of Gemmology, which will offer training across the value chain, a section for cutting and polishing of diamonds, Jewellery Blacksmith and Manufacturing for Blacksmith and Manufacturers as well as Ancillary Services that will house all supporting businesses.

To complete the equation, businesses in Mutare and surrounding areas will benefit a great deal  from the Sakubva Urban Renewal Project launched by President Mnangagwa two weeks ago.

The project, which is being bankrolled to the tune of US$8 million by BancABC, will give the city’s oldest suburb a major facelift, ranging from residential flats, market stalls to public and social amenities.