Funding for ailing companies
GOVERNMENT is set to avail funding to support ailing companies in the 2019 national budget to be announced this week and firms should formulate strategic value chains for effective growth, a Cabinet Minister has said.
Industry and Commerce Minister, Nqobizitha Ndlovu, told Business Chronicle an engagement with Finance and Economic Development Minister, Professor Mthuli Ncube, on the matter has been done in order to facilitate Government financing of the distressed companies in the budget.
Prof Ncube is expected to deliver the 2019 budget on Thursday, which will support Government’s economic blueprint, the Transitional Stabilisation Programme (TSP).
“We are putting a bid and to be honest our budget can’t cater for all the distressed companies. I don’t want to pre-empt the budget but we have agreed with the Minister of Finance that we have to come up with alternative funding ways.
“We are certainly working on a venture fund together — my ministry and his. It will certainly go a long way towards addressing challenges faced by distressed companies,” said Minister Ndlovu.
He said it was not all the companies that are struggling that need financial backing as others have their peculiarities that need to be addressed. Minister Ndlovu called on companies to engage in strategic value chain partnership for sustainability.
“My take is that there are number of companies that have to work together to come up with strategic value chains so that we are able to resuscitate sustainable industries.
“We still have to think of how Zisco can come in because it used to play a huge role in Bulawayo’s industries and how the National Railways of Zimbabwe plays a critical role as well,” said Minister Ndlovu.
He said companies should invest in research for them to embark on sustainable life changing projects. Minister Ndlovu said he was in the process of engaging stakeholders in his ministry to try and listen to their challenges and how Government can intervene.
He said in the next two weeks he would be meeting interested players in Bulawayo to help
fundamental issues that foster development and economic progress.
“We are encouraging our members to do their best to use fair pricing models to ensure that consumers afford goods and services while bringing long term sustainable value to business,” he said.
The two cents tax per every dollar transaction was recently introduced as part of Government measures to boost revenue generation. It applies to all electronic transactions above $10 and below $500 000.
The awards event was held to recognise and promote retail excellence while offering retail and wholesale enterprises from across the provinces the opportunity to showcase innovation and creativity within their establishments.
Mr Mutashu said the Matabeleland region was an industrial hub with different industries resuscitate some of the industries while coming up with new ones.
“We are coming up with a plan for Bulawayo and many other industries because we are promoting industrial development throughout the country not just traditional strongholds.
In the next two weeks we want to bring together all the minds in Bulawayo,” the Minister said. — @nqotshili