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Let Bulawayo manage DIMAF
Zimbabwe Unemployed People's Association (ZUPA)
February 17, 2012

Zimbabwe's $40 million Distressed Industries and Marginalised Areas Fund (DIMAF) created to bailout Bulawayo industries is in danger of itself failing unless the Government urgently hands over the project to the people of Bulawayo to manage it.

Last month, ZUPA called for speedy disbursement of the DIMAF by Zimbabwe's Ministry of Industry and Commerce, as more companies in Bulawayo dropped into distress with more job losses. The Ministry responded by appointing CABS, to manage the fund.

On the 2nd of February as CABS began the process, we asked the ministry to be transparent about the DIMAF process and release the names of the shortlisted companies, the criterion used to shortlist them, whether the companies were getting grants or loans and what the people of Bulawayo and the Government were getting in return.

We invited the responsible Minister to Bulawayo to a roundtable discussion with businesses and residents in Bulawayo on the issue. Bulawayo will be discussing DIMAF among other issues at the Monday Lunch Forum at the ZNCC in Bulawayo every Monday between 13:00 - 14:00 hrs.

The reason we have vested interests is that ZUPA would like industry in Zimbabwe to flourish so that jobs could be created for the millions of unemployed Zimbabweans, whose interests ZUPA seeks to advance.

ZUPA takes the view that Zimbabwe has failed in the past due to a top down philosophy where those at the top plan from air-conditioned offices without involving the grassroots, only to realise that the nut does not fit the bolt when implementation is due. Through our work with grassroots, we have learned that Zimbabweans at grassroots know better and should be given the opportunity to participate in decisions that affect them.

De-industrialisation in Bulawayo has resulted in more than 87 companies closing shop in Bulawayo and more than 20,000 people losing jobs. Using the conservative figure that any employed Zimbabwean looks after 9 souls, about 200,000 people lost their livelihoods because of these jobs losses. The situation is dire and worsening.

The Ministry of Finance Permanent Secretary Willard Manungo said that 58 companies had been shortlisted by Government as meeting the DIMAF criterion. We welcomed the announcement but warned that the jury was still out on the project. This week, ZUPA raises concerns about the approach and question the capacity of those chosen by Government to implement the DIMAF project effectively.

Of the 58 or 60 companies that Government shortlisted, the Minister of Industry and Commerce has been reported to admit that only 3 had benefited with 57 being turned down by CABS as not meeting the criteria. The Minister is further reported as planning to push for a cabinet resolution to change the checklist that CABS has to use.

Meanwhile, more companies will go under and more people will lose jobs.

It is for that reason that we, as ZUPA, on behalf of the unemployed people in Bulawayo and surrounding areas now ask the Government of Zimbabwe to change course and allow the capable people of Bulawayo to manage the DIMAF.

The Business people, industry federations, chambers of commerce, workers' unions, residents associations, academics and ZUPA, representing the unemployed should urgently form a committee to manage the $40 million DIMAF in the best interest of Bulawayo.

Bulawayo has people who are willing and capable of implementing a successful programme of recovery for the city given the resource.

ZUPA would like to ensure that in every board of a company given a bailout, there is a ZUPA member representing the interests of the ordinary residents of Bulawayo. The board member would ensure that the bailed out company employs people from Bulawayo and the surrounding areas once jobs are created.

The ZUPA representative board member would also ensure that the management strategy is one that favours employment creation, this being the stated aim of the fund.

We further restate our previous view that the fund should have been extended to a wider group to include forward looking entrepreneurs and small businesses whose products may be more suited for the new world market. One reason why CABS has not played ball may be lack of viability in some of the former big companies.

We are confident if the people of Bulawayo are given an opportunity to manage the fund created to benefit them, the objectives of Government would be achieved, easily.

We hope the Minister would be tabling a cabinet resolution to ensure that this happens instead.

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