Bulawayo - Economy

Economy

Bulawayo has long been known as the industrial hub of Zimbabwe. It has a large manufacturing presence, and large industries such as Merlin Textiles, Zimbabwe Engineering Company (Zeco), Hubert Davies, Radar Metal Industries, National Blankets, G & D Shoes, Merlin, Tregers Group, Stewarts & Lloyds, Hunyani Holdings, Cold Storage Commission. However, some of these companies have either moved operations to Harare or no longer exist altogether which has crippled Bulawayo's economy. The industries are deserted and the infrastructure has since been left to deteriorate, further deterring investors from operating in the city. The reason for the city's de-industrialization has been heralded to be the lack of infrastructure to support the size of the city and its operations and an unreliable source of water and the collapse of the rail infrastructure which was a core reason of placing industry in Bulawayo to begin with. Many locals argue that it is because of marginalisation they experience against the government due to cultural differences between the Shona in Harare and the Ndebele Proper in Bulawayo because the National railways of Zimbabwe (Headquarters Bulawayo) is a government parastatal and as such should have been thriving had it not been for embezzlement of allocated funds by company executives who are believed to be Shona. The water issue is not new and had brought about the "help a thirsty Matabele" initiative of the 1970s and the Matabeleland Zambezi Water Project which would put an end to the water issue in Matabeleland was drafted, however this project was put on hold soon after independence. these allegations have all been labeled hogwash by the relevant authorities, however they have only fueled the secessionist initiative into a general opinion. Before the collapse of Zimbabwe's rail infrastructure, Bulawayo was an important transport hub, providing rail links between Botswana, South Africa and Zambia and promoting the city's development as a major industrial centre. The city still contains most of what remains of Zimbabwe's heavy industry and food processing capability including a Thermal Power Station which resumed operations in February 2011 after a capitalisation deal with the Government of Botswana where Bulawayo would supply 45 Megawatts in three years. Like many parts of the country, Bulawayo has for the past ten years seen a huge drop in service delivery and an increase in unemployment due to the number of resignations of people seeking better prospects across the border. Many people resorted to farming, mining and the black market for sustenance, while others depended on the little foreign currency that would be sent by family in other countries. However, with the introduction of the multi-currency system in 2009, a new approach is seen by investors in the city who admire the already-available infrastructure and the huge workforce and Bulawayo as great prospects for the future and is set to once again contribute greatly to the economy of Zimbabwe. The city is served by Joshua Mqabuko Nkomo International Airport which has been expanded a number of times to cope with the influx of visitors into the region. The Edgars clothing stores are headquartered in Bulawayo. The Rovos rail run luxury train, Pride of Africa makes a stop in Bulawayo for pick up and dropping off passengers. Bulawayo is situated along the Trans-African Highway network important trade route of Cairo – Cape Town Highway. Most of the city's industries are privately owned, especially in the transport sector.