Industrialists, Diplomats tour Byo Industries

INDUSTRIALISTS and diplomats from the SADC region yesterday toured Bulawayo industries with a view of creating potential investment and understanding how these companies are operating in the midst of de-industrialisation worsened by low economic activity in the city, Radio Dialogue reported.

The team also comprised of Deputy Minister of Finance, Samuel Undenge, Zimbabwe National Chamber of Commerce (ZNCC) and Confederation of Zimbabwean Industries members.

The diplomats consisted of Gabriel Owusu Ansah from Ghana, Makamba Duhari from Tanzania, Jacquie Boketsu Katuala from the Democratic Republic of Congo, Frank Stephens from South Africa and Ambassador Elio Savon Oliva from Cuba.

The team led by ZNCC member, Obert Sibanda started off at National Railways of Zimbabwe then headed to Datlabs, Ingwebu Breweries, United Refineries Limited, National Foods, and Asphalt.

Sibanda said the tour was for companies to meet with envoys from other countries in order to initiate dialogue, which might lead to partnerships and investment opportunities.

"The minister (Undenge) was also a ZNCC member. He is here to listen and after taking note of challenges, he will channel them to his counterparts. The diplomats too can take these challenges as investment opportunities," he said.

Most company officials cited the importation of goods as a major blow to local production , as their products were facing "unfair' competition from cheaply made goods while the cost of bringing in raw materials exacerbated their production costs.

Therefore, consumers preferred cheaper imported goods than locally made products.

In comparison, however, locally made goods are of better quality than imports.

Industry officials strongly urged the government to strictly control the flow of imports into the country while the diplomats took notes and asked questions.

National Foods Executive Director for Maize meal, Nathaniel Nyathi, confidently said the milling company had capacity to feed the entire nation and SADC region but due to cheap imports coupled by operational costs, local products were more expensive.

"No country wants to have a warehouse. The imports have destroyed us but we continue producing 24 hours a day. Prices from finished goods are high, as they are deduced from the manufacture costs.

"Industry is not suffering because of inefficiency, we have rich personnel. This plant can produce 20 tonnes per hour, 480 tonnes in four hours. We have two factories here and in Harare. In history we supplied SADC but now we don't even export products," he said.

National Foods is now operating at 68 percent higher than the previous 38 to 45 percent.

Nyathi said investment would be welcomed in updating technological equipment.

"We want to advance our know how, we are failing because of lack of technology," he said.

Asphalt Products, Chief Executive Officer, Francis Mangwendeza listed high financing costs, short term loans, late payments especially from government or quasi-governmental organisation, corruption and bureaucracy as negatives that affected production.

He said when it came to debts, late payments came with no interest yet when borrowing money from banks, companies were charged high accumulative interests.

After the tour, Undenge said the problems in the production sector called for joint ventures, where companies could brush up on their technological capableness and access capital.

He said the importation of goods needed constant monitoring and the tariff issue had to be revisited when it came to importing raw materials into the country for manufacturing.