Bulawayo leads other provinces in Zimbabwe on the export market

Zimbabwe's second-largest city, is leading the country in export volumes, but there is a growing need for more export incentives to help the city unlock its full potential, according to industry experts.

Speaking at a business engagement in Bulawayo on Friday, Confederation of Zimbabwe Industries (CZI) Matabeleland Chamber president Stephen Ncube emphasized the city's vital role in Zimbabwe's export landscape. He highlighted that despite challenges, Bulawayo remains more export-oriented than most parts of the country.

"Bulawayo is more export-oriented than the rest of the country. At a national level, only 7% of output is exported, but in Bulawayo, 11% of output is exported," Ncube said.

"We have great potential in the city, and we need more export incentives as most raw materials used are imported."

Calls for More Export Incentives

Mr. Ncube called for increased support for businesses in Bulawayo to enhance their export capabilities, particularly as they face challenges with sourcing raw materials, which often have to be imported. He stressed the importance of incentivizing the manufacturing base in the city to spur further growth.

With the proper support, Bulawayo's industries could expand their contribution to the country's economy, helping to reduce Zimbabwe's reliance on imports and increase the nation's foreign currency earnings. The city, once Zimbabwe's industrial hub, has seen a decline in its manufacturing capacity in recent decades due to economic hardships and infrastructure challenges.

Water Shortages Hurting Investments

However, Mr. Ncube pointed out that crippling water shortages are negatively impacting business operations in Bulawayo, deterring potential investors and slowing industrial growth. He expressed concerns that the water crisis is discouraging investment and stifling economic opportunities in a city that has the potential to drive national growth.

"Bulawayo is facing water challenges, and it's draining investment in the city," Ncube said, underscoring the urgency of finding sustainable solutions to the problem.

Infrastructure Funding: Need for Private Sector Involvement

While calling for more export incentives, Mr. Ncube also noted that the city's infrastructure challenges, such as its water shortages, cannot be solely addressed by the government. He advocated for a diverse funding approach that includes private sector involvement in developing the city's infrastructure.

"We need to reduce over-reliance on government for infrastructure funding," Ncube said. "There's a need to restore capital and financial markets to fund infrastructure development. We should have a basket of potential funding sources."

Resuscitating Bulawayo's Manufacturing Base

Bulawayo, historically known as Zimbabwe's industrial heartland, has seen a significant decline in its manufacturing sector over the years. However, there is a growing movement to resuscitate the city's manufacturing base, with calls for policies that encourage investment in local industries and export-oriented businesses.

The city's strategic location, close to neighboring countries like Botswana and South Africa, makes it a prime candidate for export-led growth. With adequate infrastructure development and incentives, Bulawayo could reclaim its status as a key player in Zimbabwe's industrial and export sectors.

Bulawayo's export potential remains strong, but addressing infrastructure challenges, particularly water shortages, and providing more incentives for export-oriented businesses will be crucial for the city's future growth. The call for broader funding mechanisms and private sector engagement in infrastructure development reflects the need for a comprehensive strategy to revive the city's manufacturing base and expand its role in Zimbabwe's export economy.