Bulawayo still reeling from illegal sanctions
THE tale of the demise of Bulawayo’s industries is a story which cannot be separated from the illegal sanctions imposed by Western countries on Zimbabwe.
Once considered the country’s industrial hub with flourishing factories, Bulawayo is today a pale shadow of its former glory.
At the turn of the millennium, the manufacturing sector in the city suffered the most due to economic sanctions, which stifled its ability to effectively operate.
Productivity nose-dived as companies failed to retool due to their inability to access cheap financing.
The country’s Land Reform Programme implemented in 2000 triggered the imposition of economic sanctions against Zimbabwe, mainly in the form of the so-called Zimbabwe Democracy and Economic Recovery Act (ZIDERA) in America.
Our Bulawayo Bureau yesterday visited selected industries in the city, which are still bearing the brunt of the embargo.
What used to be the city’s bustling industrial area today resembles a ghost town with a few firms such as United Refineries, Archer Clothing, Datlabs and Arenel operating at decent capacity utilisation levels while a majority have either closed or are operating below capacity.
Most of the buildings have obsolete and decaying equipment while some have completely closed shop.
Big engineering firms synonymous with Bulawayo’s industrial heartland, which include what was once the giant iron and steel engineering firm F Issels and Sons, General Belting, Radiator and Tinning, and Hubert Davies are now just factory shells whose machinery is now coated in red dust and rust.
Our Bulawayo Bureau also observed that some of the buildings such as Merlin Towels, which was once a textile giant, has peeling paint on the walls due to years of decay.
The now defunct giant textile firm, National Blankets Limited is a shadow of its former self. SMEs are renting out space.
Goldstar Sugar Refineries along Khami Road is also closed and the building has also gathered dust with broken window panes.
Industrialists and social commentators attributed the collapse of the city’s industries to the illegal sanctions.
Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland regional chairperson, Mr Golden Muhoni said Bulawayo companies were feeling the pinch of sanctions.
“Sanctions and the collapse of industries in Bulawayo are interconnected to each other. We are a global economy where financiers and recipients of the funds work in harmony. When you are under sanctions what it means is that you are no longer able to access cheap funding from global institutions such as World Bank and IMF,” he said.
“Even the funder who might be willing to fund will not be able to do so because the country risk is very high. Ultimately, it affects those industries which want to replenish.”
Mr Muhoni said at independence, the country’s industries were connected to the United States and Europe in terms of accessing spare parts and machinery.
“Due to sanctions, it means companies are no longer able to access the equipment including the funds because those willing to fund risk are being penalised and, in that sense, industry feels the impact,” he said.
Mr Muhoni said sanctions also affected a lot of industries which used to rely on European markets.
“Some of our products have been going to foreign markets via the backdoor and an example is our diamonds which we were not able to sell on the open market because of sanctions. These are some of the negative effects of sanctions because if you are not able to go to the open market, we will do so via third parties,” he said.
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