The massive job losses were attributed to the continuous closure of industries in the eastern region by a report from the Ministry of Industry and Commerce regional office. The report further indicated that a mere 13,000 workers are still employed in the city’s manufacturing sector – a figure that is set to decline as more industries face operational challenges and are likely to fold.
Mutare, which has an estimated 188,243 population, has been hit by mass company closures such as Mutare Board and Paper Mills (MBPM), Karina Textiles, Pine Products, Arda Katiyo and Devstar Clothing, Industrial & Domestic Wear, Dairiboard Mutare Factory, Kenge Breweries, Cotton Company of Zimbabwe (CCZ) and Zimbabwe Coffee Mill.
Since the controversial July 2013 elections, the Zanu (PF) government has been consumed by a bitter internal succession battle. The report hinted that the jobs losses and industry collapse were largely due to policy inconsistencies, and cited the controversial Indigenisation Act and land grab. “There should be harmonisation of policies from different line ministries to avoid policy inconsistencies, which have been one of the major challenges in the motor and timber industry.
“There should be a clear outline of how the Indigenisation Act is going to work, because there have been misunderstandings emanating from it affecting investor confidence. The land reform programme has also resulted in the collapse of the once vibrant timber industry. Illegal settlers have continued to besiege timber estates and government has to address this anomaly to bring sanity into the sector,” said Industry and Commerce Ministry acting regional director Phenias Skanda, quoting the report.
The document called for labour reforms, re-tooling of manufacturing and good corporate governance within institutions in order to survive the harsh economic environment.
Post published in: News