The ManicaPost
BUSINESSES across the world have been adversely affected by the Covid-19 pandemic, which has seen most countries closing their borders and enforcing lockdowns in order to curb the spread of the highly contagious disease.
Zimbabwean businesses have not been spared. The Manica Post News Editor, Cletus Mushanawani (CM), recently caught up with Confederation of Zimbabwe Industries Manicaland president, Mrs Victoria Jakazi (VJ), to hear how companies in Manicaland intend to get back on their feet after the lockdown.
CM: The 21-day national lockdown was extended by another two weeks, how is the manufacturing sector in Manicaland coping with the lockdown and what does the future hold for affected companies?
VJ: The lockdown itself is understandable. Yes, it has been hard since no business had planned for it, but we understand that the pandemic is an act of nature and there is nothing else that can be done, except to shut down until the pandemic is under control.
In Manicaland, most of the companies have either shut down completely or are working at 50 percent capacity and below. There is not much going on. We will have to re-strategise and see how industry can move forward.
We are hoping that Government will assist the private sector in getting some foreign direct investments. This funding should come directly to the manufacturing sector so that we recover from the losses.
CM: So far, how much revenue has Manicaland businesses lost due to this pandemic and the lockdown?
VJ: The losses are huge. I cannot give a conclusive figure for now, but we are saying with capacity utilisation at 50 percent and below, the losses are huge. If anyone is actually working at 50 percent, they are doing very well, most of them are below that. A time will come when we will get back together, count our losses and look at our needs. During this lockdown, there has been no cash flow coming into the companies so they are almost dry. This is why we are saying Government needs to intervene by guaranteeing some credit facilities from the banks. These can be given to the companies that are badly affected.
CM: Most of the revenue for the horticulture and timber industries come from exports, and of late nothing much has been happening in that department. How are you going to ensure such sectors remain afloat?
VJ: What is making the whole situation difficult is that the countries that supply us with raw materials, including South Africa and those in Europe, are also on lockdown.
China is still picking itself up from the effects of the Covid-19, so our raw material sources are seriously affected. So in terms of manufacturing, some companies are crippled.
With regards to exports, while we have been producing at low capacity, our timber regional markets are locked down so there is no real market for us. But there has to be a way of re-opening the markets. Industries will get off their feet. However, this will be slow and difficult.
CM: In terms of employment, many employees are working from home during this lockdown. Are businesses considering retrenching these employees?
VJ: So far there hasn’t been any talk of retrenchments from our businesses in Manicaland. It is a question of trying to get back into business and then we will see what happens from there. We are aware of what the Minister of Public Service, Labour and Social Welfare, Professor Paul Mavima has said, and everyone understands the difficult situation we are in. So everybody needs to play ball to come up with a way forward — the employer, the employee and Government.
CM: What is your position on the minimum wages issue?
VJ: At CZI, we are looking at a situation where each sector can negotiate the wages to be paid to employees. We are talking of sector by sector negotiations because our business models are different and our ability to pay certain amounts also differ. I am not saying we don’t want to consider the national minimum wage, we have heard about it and we are aware of it, but we are saying the different sectors and their capacities to pay need to be considered. That is why a sector by sector forum might help.
CM: Now that President Mnangagwa an extension of the lockdown is underway, are businesses prepared for it?
VJ: The lockdown has been very difficult but it is necessary.
Any extensions should be modified to ensure that the economic side is also taken care of. The President did just that by opening the mining and manufacturing sectors.
The health sector is very critical, but we also need to take into consideration everything that can be done to uplift the economy without jeopardising lives. That is our stance at the moment and it is a question of us coming together with Government to come up with a way forward that ensures a win-win scenario.
