Brunette Tshuma
Bulawayo is taking significant steps to revive its economy, with a recent meeting held on September 13 to discuss strategies for growth and development. The meeting, hosted by Dr. Mhlophe of the Sojoma Economic Development Institute, brought together business owners, company representatives, and NGOs to identify limitations and explore opportunities for growth.
One major challenge facing Bulawayo is the dominance of Small-Medium Enterprises (SMEs), which account for almost 90% of businesses in the city. These SMEs often focus solely on direct cash flow, neglecting other revenue streams such as increasing company value and expansion through shares ¹. Dr. Mhlophe emphasized the need for aggressive business approaches to drive growth.
Other obstacles include:
- Lack of Business Management Skills: SME owners often lack essential documents like product development files and committee files, hindering their ability to review and improve business efficiency. They operate the business as if it were a sole trade entity, with decisions being made or taken by one person. Most SMEs are not Tax Complaint as such this hinders collection of Revenue by the Council as well as the Tax Authority (Zimra).
- Trademark Issues: Many businesses have failed due to stolen business names, limiting their expansion and contributing to Bulawayo’s economic decline.
- Government Priorities: The government’s focus on social and political aspects has overshadowed economic and security concerns, hindering growth. The City of Bulawayo in particular has been sidelined by government eversince its elected councilors emanate from the opposition party. As such development decisions, no matter how viable, will always be thwarted by Central government through the Ministry of Local Government. Currently Bulawayo is facing a severe water crisis, but Central government is dragging its feet to release funds for projects that the Council tabled to try and alleviate this crisis.
To address these challenges, the Bulawayo City Council plans to educate the public on starting businesses at a corporate level, with evolving strategies over time. Dr. Mhlophe also encouraged business owners to diversify their currency usage, citing potential benefits for market expansion.
As Mrs. Nesisa Mpofu noted, “Our diversity, our uniqueness is what is going to change the economy of Bulawayo.” This sentiment echoes calls from industrialists like Golden Muoni, who advocate for new industries and technologies to drive growth, rather than reviving outdated companies.
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