HomeBusinessCompany closure in Byo leaves 200 jobless

Company closure in Byo leaves 200 jobless

The company has been in existence since 1952. The closure of Harven comes amid delays by government in releasing money under the US$40 million fund to bail out Bulawayo companies.

Under the Distressed Industries and Marginalised Areas Fund (Dimaf) set up last year, companies in Bulawayo are supposed to access cheap funds meant for recapitalisation.

Zimbabwe Congress of Trade Union (ZCTU) Bulawayo spokesperson, Percy Mcijo, confirmed the closure of Harven, saying it was a slap in the face of the government which was delaying in disbursing the recapitalisation funds.

“It is very unfortunate that Harven clothing company which has been operating for the past 60 years has become the latest Bulawayo company to shut down,” said Mcijo.

“It is very unfortunate because its closure comes at a time when the government is dilly-dallying with the release of the Dimaf to save the few remaining struggling companies.”

The protest threat comes weeks after Reserve Bank of Zimbabwe governor, Gideon Gono, urged companies to hold demonstrations at the ministries of Finance and Industry and Commerce against the slow disbursement of the funds.

Gono recently disclosed that only US$900 000 has been disbursed out of the applications worth US$27 million.
Bulawayo’s textile industry has been hardest hit in terms of capacity utilisation as seen by the continued closure of clothing companies.

Last month, Archer Clothing Company ceased operations leaving about 600 workers jobless. In 2007, the clothing and textiles sector employed 13 500 workers in 237 companies.

Before independence, Bulawayo was generally known as the country’s hub of industry and at one point accounted for 75% of the country’s manufacturing activities.

However, the city’s industry now resembles a ghost town as companies continue to relocate or close shop altogether.
Last year, about 87 companies ceased operations.

 

 

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