Business
10 - 16 February 2014 - The Observer
The Observer
16 February 2014 10
The Observer - 08 December 2013 -- 10
‘Don’t compete withapply
149 companies cheap
Chinese products’– EU Ambassador
for liquidation
recently signed an interim EPA along with
Madagascar, Mauritius and Seychelles.
The agreement allows goods from these
T least 149 companies filed for applied for liquidation. The number increased to buy basic material required to revive them.
countries to enter the European market duty
“The major problem we face as judicial
liquidation at the High Court in to 73 in 2011 and more than doubled in 2012
and quota free.
managers is lack of access to capital in order
2012, failing to keep up with high to 149.
EU has in the past supported various
The number could be higher in 2013 as to address these problems,” he said.
operational costs a local think tank said on
Another judicial manager, Reggie Saruchera activities in the country including the industry
Friday, and more are seen going under in 2013 the economy is stuttering in the aftermath
as economic conditions worsen.
of a disputed July 31 election that extended of Grant Thornton said the empowerment ministry in establishing a national trade policy.
Companies are battling with high financing President Robert Mugabe’s 33-year rule and law requiring foreign owned companies to be It also sponsored the textile industry to host
costs, with banks charging as much as 20 a cash squeeze that has reduced consumer 51 percent owned by local blacks was making the clothing indaba in 2012 and 2013 as well
it difficult for potential investors to put their as the Made in Zimbabwe campaign aimed at
percent interest and the Zimbabwe Economic demand.
promoting local products.
Policy Analysis and Research Unit (ZEPARU)
Cecil Madondo of Tudor House money in distressed companies.
“There must be a difference on how the
said most of those that applied for liquidation Consultants who has managed 25 companies
EU has also supported ZimTrade in
were on the basis that they could not pay their in nearly two decades, said most companies company is being bailed out,” he said.
hosting its annual exporters conference and
were placed under judicial management or
He called for a legislation that forces the Confederation of Zimbabwe Industries
debts
Labour costs in Zimbabwe are among the liquidation due to gross mismanagement, lack shareholders of distressed companies to to launch its anti-bribery, anti-corruption
highest in Southern Africa while the electricity of effective corporate governance structures relinquish power for the benefit of creditors.
campaign.
“They don’t want to relinquish shareholding,
costs remain prohibitive and most companies and high level of indebtedness.
Industry and commerce minister, Mike
“You find a company technically insolvent they don’t have money to put into the business
are stuck with aged machinery that is expensive
Bimha said the EU project, which would
sometimes with more liabilities than assets and at the same time the depositors and
to maintain.
be Reggie Saruchera oftwo and Thornton
implemented over Grant a half years,
creditors are suffering, where do we draw the
The number of companies seeking regardless of its viability,” he said.
complimented government’s
employers making it difficult for a five-year
judicial
liquidation has progressively increased since
He said undercapitalisation was a major line?” he said.
economic retrench where necessary in order
manager toblue print, Zimbabwe Agenda for
He also complained about the country’s
dollarisation in 2009. In 2010, 50 companies, challenge facing most companies under
Sustainable Socio-economic Transformation
almost five times more than the prior year judicial management resulting in them failing labour laws which were not favourable to to revive a company.
(ZimAsset).
“Capacitating of such important institutions
as ZimTrade, Standards Association of
Zimbabwe, Business Council of Zimbabwe,
The EU ambassador to Zimbabwe, Aldo Dell’Ariccia
HARARE
Dell’Ariccia urged Zimbabwe to revive local conditions to access the markets and you can SMEs and women organisations is critical
to the successful implementation of both
imbabwean companies have been companies and produce special products.
be competitive on these markets,” he said.
urged to develop their own niche
“Don’t compete with the Chinese for
Dell’Ariccia said the EU was convinced ZimAsset and the interim EPA,” he said.
He said another project valued at 5.2
markets on the international cheap t-shirts. One of your t-shirts will cost that enhancing trade and supporting private
million euro was in the pipeline of which one
he United States Embassy government ofofficials Go for excellence,” he said. chapter sector development, AWEP was established in coincides with the Africa Growth
is to capitalize
market and to desist from 10 theirs. from the Zimbabwe
in particular the SMEs,
has supported the launch Ministry of Women Affairs, Gender supportprovidingat (opportunity) for July for poverty alleviation, million euro would beAct (AGOA) Forum
competing with cheap Chinese products.
The three million euro on is aimed
were essential elements 2012 by the United States’ Opportunity used to support the
implementation of the Washington, DC, and
of
Zimbabwean and
Department of State
Speaking at the launch of a three million Community SMEs access to market information job creation and overall development of the through when held in EPA while 4.2 million
the
facilitating Development; women in business.
euro
Chapter of the African Women and the and to remove trade barriers “We believe as country.
is designed to to support regional
euro facility to empower small and medium Ministry of Industry and between EU and AWEP that once international exchange programswould be used help the entrepreneurs
Entrepreneurship Program with the European Zimbabwe.
(AWEP)
involving American and African build development. - Source develop
integration and business alliances,
enterprises (SMEs) to trade
Zimbabwe signed an Economic Partnership
at a funtion in Harare recently.
women.
advocacy and communication
Union, EU ambassador to Zimbabwe, Aldo
“Make sure you know exactly the Agre