Government policies, which have been introduced in the past six months to protect local manufacturers from cheap imports, have revived many Bulawayo companies.
BY BLESSED MHLANGA
Lobels Biscuits and Sweets, which was at one time on the verge of collapse, is now looking to up production by procuring a $2 million oven to ramp up its production line following a Statutory Instrument (SI) 126 of 2014 introduced by government to protect local manufacturers by imposing taxes on imported biscuits.
Lobels Biscuits and Sweets managing director, Clinton Lecluse, told a delegation of ambassadors, officials from the Office of President and Cabinet led by Mary Mubi that because of the SI, his company had clawed back the local market and was now looking to consolidate its position through exports.
He, however, accused the Zimbabwe Revenue Authority of sleeping on the job, saying border posts were porous, allowing syndicated smuggling of biscuits into the country, thereby hurting the local industry.
Conveyor belt manufacturer, General Beltings said its market share trebled to 20% after government introduced the SI, which forced major mining players to buy locally produced goods.
Group managing director, Wilbroad Tsuroh said in the six months since the measures were introduced, turnover went up by 47% to $2,2 million. He said operating expenses dropped by nearly 7% owing to economies of scale and an increase in capacity utilisation.
General Belting currently employs 168 workers from a peak of 320.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
He said if Zimra was diligent on the borders, its market share would increase to 50%.
“Most of the major players have now given us orders and we are supplying, our bankers have responded by progressively lowering our risk rating and interest charges and the future looks bright,” he said.
The story was the same at National Blankets, which is currently under judicial management. It said taxes on imported blankets have spurred local demand and market share was on the rise.
Most companies, however, continue to be affected by aging machinery and are seeking funding to retool and replace antiquated machinery.
