Civic groups and labour meet over dying Matabeleland businesses

Civic society and labour groups in Matabeleland province met in Bulawayo on Tuesday to discuss the critical lack of development funds for the area, which has seen many businesses closing or relocating to Harare. Economic conditions in the province are said to be so dire that most companies cannot continue to operate there. Critics say areas of Zimbabwe that have been ignored since independence remain underdeveloped and this has caused resentment among residents and businesses. The Tuesday meeting follows increased criticism of the Distressed and Marginalised Areas Fund (DiMAF), a government subsidised loan scheme that was established with the aim of assisting businesses in marginalised areas, particularly Matabeleland province. The government pledged $40 million dollars to help these areas, but according to SW Radio Africa correspondent Lionel Saungweme, only $3 million has been disbursed so far and companies in Bulawayo were not assisted. Saungweme said the groups that met on Tuesday are planning a demonstration to highlight the plight of businesses and workers in distressed areas. They are also calling on government to prioritise Matabeleland development with urgency, and make DiMAF a Bulawayo scheme. Saungweme, who has copies of loan applications from CABS Bank, reported last month that the applications revealed Bulawayo was still being ignored, even under the DiMAF scheme. Out of 215 applications in his possession, Saungweme said only one company from Bulawayo received funds. He explained that workers are losing their jobs due to relocations, with companies making it so difficult to move house that many decide to resign instead. Harare is considered a prime location because it is easier to access loans and investors in the capital. Groups represented at the Tuesday meeting included the umbrella Zimbabwe Congress of Trade Unions (ZCTU), the National Constitutional Assembly, Zimbabwe Election Support Network, Bulawayo Agenda, Radio Dialogue, Habbakuk Trust and Bulawayo Progressive Residents Association.