The Financial Gazette

Ray Ndlovu, Senior Staff Reporter

BULAWAYO — A working visit by a European Union (EU) delegation to Matabeleland last week has brought to the fore the raft of problems holding back development in the region. Identified as central to these challenges, is the migration by people and businesses in search of “greener pastures”. This has had the effect of leaving a vacuum in Matabeleland.
The EU delegation, led by Ambassador Aldo Del’ Ariccia, moved its senior staff to Bulawayo for a week as part of a programme aimed at “engaging with local economic, social and political actors”.
Officials said the move, strongly resisted from the onset by ZANU-PF’s point-man in the region, Cain Mathema, was meant to “assert publicly and clearly the EU’s commitment to the development of the region as well as to seek insights and ideas for the future prospects of engagement in Matabeleland.”
Several roundtable discussions on the region’s state of affairs were held at the National Gallery of Zimbabwe and focused on health, education and food security.
It was, however, the discussion on migration in the region that resonated strongly with the city’s stakeholders and residents.
It was strongly felt that the void caused by the movement of people and companies from Matabele-land had dealt a hammer blow to the city, particularly in the past three years.
Not even the dollarisation of the country’s economy in February 2009 could slam brakes on the de-industrialisation of the region.
Since 2010, nearly 90 companies have closed shop in the city, and with most of these having relocated to Harare.
The short-listing of 58 firms two weeks ago to access a US$40 million resuscitation fund provided for by the government and Old Mutual Zimbabwe under the Distressed Indu-stries and Marginalised Firms (DIMAF) had offered a glimmer of hope to the struggling firms, but the anticipation has since dissipated.
Captains of industry say those companies that fail to access the DIMAF, and these are likely to be the majority of the companies operating in the region, might remain closed.
It has since emerged that smaller companies are crying foul over the perceived favouritism of larger firms ahead of them in the processing of DIMAF applications, as they are thought not to have adequate collateral to cede to the banks.
Peter Nyoni, president of the Bulawayo Industries Businesses Association, said the disbursement of the fund has a bias in favour of  big companies, in the assumption that they em-ploy many people, which is not always the case.
With the closure of several leading companies such as Cotton Printers, Security Mills, Bulawayo, the hub of the Matabele-land province, which is situated close to South Africa and Botswana, has seen scores of people make a beeline to the neighbouring countries to eke out a living for themselves.
Observers  view the city’s proximity to South Africa and Botswana as the major reason for the high migration patterns and likely to hurt its push for the revival of its business operations.
Godwin Phiri of the National Association of Non-Governmental organisations said the continued marginalisation of the region in all facets of life has also contributed immensely to mig-ration.
“Jobs are sca-rce, the economy is collapsing, and the decision-making remains central . . . There is a certain view that perhaps South Africa and Botswana provide better stability.
“As long as people do not have confidence in their own country, people will not stay in it”.
He added: “As a result, we have lost potential leaders.
“A lot of the young people who should be ready to take over leadership have actually run away and gone to South Africa and this has created a leadership vacuum”.
Nearly 1,5 million Zimbabweans are thought to be living illegally in South Africa, and in October last year only 275 000 had taken advantage of a regularisation offer from that country’s Ho-me Affairs Depart-ment.
Political analyst, Effie Ncube, conceded that the bulk of deportees ret-urning from South Africa were youths who left the country citing the record-breaking economic meltdown that reduced Zimbabwe from being the region’s breadbasket to a basket case.
It is also beli-eved that with political parties itc-hing for elections this year, the eruption of political violence may also further fuel increased migration as people in politically-charged rural are as flee from pockets of disturbances.