Business / Local
SA to bail-out Bulawayo companies
20 Oct 2013 at 03:08hrs | Views
SOUTH Africa has identified five companies from various sectors in Zimbabwe that are under stress for a pilot bail-out programme after the neighbouring country took a decision to assist them through joint ventures.
In an interview last week, South African Deputy Minister of Trade and
Industry Minister Mrs Elizabeth Thabethe said Bulawayo had been given first priority in the programme although she could not disclose the names of the companies.
"Through IDC, we intend to bail out Zimbabwean companies that are in distress and those that are about to close down. We are starting with five companies from different sectors and see how best we can assist them through joint ventures so that they don't close. We are starting now up to 2014," said Mrs Thabethe adding that there were also private South African companies ready to assist.
South Africa Ambassador to Zimbabwe Mr Vusi Mavimbela said his Government had also instructed financial institutions with Government shareholding to finance investment projects in Southern Africa particularly in Zimbabwe.
"The SA government took a Cabinet decision to instruct the finance development institutions of South Africa like the Development Bank of Southern Africa, Industrial Development Corporation of South Africa (IDC) and Public Investment Corporation (PIC) to look for investments mainly in Southern Africa. These companies are looking at Zimbabwe to fund concrete projects that are there," said Mr Mavimbela.
He said more South African companies were also keen to invest in the energy sector.
"The DBSA and PIC are looking at financing power generation in Zimbabwe".
Meanwhile, Zimbabwe's Small and Medium Enterprises Cooperative Development deputy minister Noveti Muponora said there is a lot that Zimbabwe can learn from South Africa's Small Enterprise Development Authority (Seda) through exchange visits as well as learning how SMEs under Seda are being developed.
He said there was a Memorandum of Understanding between the two countries that would see them cooperating in areas of training, joint venture partnerships and resource mobilisation for small to medium enterprises.
"We are looking at more cooperation between Sedco and Seda especially on SME incubation that South Africa is already doing as well as how we can mobilise resources for the benefit of this sector," said Muponora.
He said it was important to develop the SMEs sector considering the role it plays in the economy with statistics showing that they were the major lifeline for many families.
"It is important for all SMEs and large companies that enter into agreements ensure that they are implemented for the benefit of our countries. There are various opportunities at your disposal, use them, enter into partnerships in order to exploit them," he said.
Government has always said the sector has proved capable of significantly contributing towards the recovery, growth and development of the economy.
The sector, however, faces a number of challenges ranging from limited access to capital, skills shortage, a hostile regulatory environment and lack of proper infrastructure.
In an interview last week, South African Deputy Minister of Trade and
Industry Minister Mrs Elizabeth Thabethe said Bulawayo had been given first priority in the programme although she could not disclose the names of the companies.
"Through IDC, we intend to bail out Zimbabwean companies that are in distress and those that are about to close down. We are starting with five companies from different sectors and see how best we can assist them through joint ventures so that they don't close. We are starting now up to 2014," said Mrs Thabethe adding that there were also private South African companies ready to assist.
South Africa Ambassador to Zimbabwe Mr Vusi Mavimbela said his Government had also instructed financial institutions with Government shareholding to finance investment projects in Southern Africa particularly in Zimbabwe.
"The SA government took a Cabinet decision to instruct the finance development institutions of South Africa like the Development Bank of Southern Africa, Industrial Development Corporation of South Africa (IDC) and Public Investment Corporation (PIC) to look for investments mainly in Southern Africa. These companies are looking at Zimbabwe to fund concrete projects that are there," said Mr Mavimbela.
He said more South African companies were also keen to invest in the energy sector.
"The DBSA and PIC are looking at financing power generation in Zimbabwe".
Meanwhile, Zimbabwe's Small and Medium Enterprises Cooperative Development deputy minister Noveti Muponora said there is a lot that Zimbabwe can learn from South Africa's Small Enterprise Development Authority (Seda) through exchange visits as well as learning how SMEs under Seda are being developed.
He said there was a Memorandum of Understanding between the two countries that would see them cooperating in areas of training, joint venture partnerships and resource mobilisation for small to medium enterprises.
"We are looking at more cooperation between Sedco and Seda especially on SME incubation that South Africa is already doing as well as how we can mobilise resources for the benefit of this sector," said Muponora.
He said it was important to develop the SMEs sector considering the role it plays in the economy with statistics showing that they were the major lifeline for many families.
"It is important for all SMEs and large companies that enter into agreements ensure that they are implemented for the benefit of our countries. There are various opportunities at your disposal, use them, enter into partnerships in order to exploit them," he said.
Government has always said the sector has proved capable of significantly contributing towards the recovery, growth and development of the economy.
The sector, however, faces a number of challenges ranging from limited access to capital, skills shortage, a hostile regulatory environment and lack of proper infrastructure.
Source - SundayNews
