Mutare city fathers have extended an investment opportunity to prospective takers for its Pungwe Breweries, as the unit’s viability challenges persist.
Legacy debts, operational challenges, and the dearth of the local industry have caused the concern to run perennial losses.
City fathers and management have since resolved to pull the plug on the subsidy, that is being cushioned by other council funds, causing an unsustainable drain on its coffers.
Speaking during a roundtable service delivery interface organized by TellZim Media Trust, the chair of the Business Investment Promotion Committee, Councilor Xavier Upare confirmed that the council is considering all options.
Upare said this was in part a response impact of the Covid 19 pandemic has affected the municipality’s revenue flows, as well as a strategic upgrading exercise for its properties and systems.
“While we have council properties that we are leasing, we still have infrastructure that is not being put into good use. Some of these properties include beerhalls which have somehow outlived their business viability as they are not of any social relevance.
“We have several other low-hanging fruits that can be leveraged through private-public partnerships, that need to be advanced by the council,” he said.
Upare also revealed that Mutare city is also seeking partners to resuscitate its dilapidated real estate, which also includes beerhalls in high-density residential areas.
He said the council is considering strategic disposal or leasing its underutilized beerhalls, as well as total renovation and use conversion of properties, in a bid to raise revenue by stimulating investment.
“Who wants to drink in those old beer halls anyway, they have outlived their purpose and are no longer attractive,” said Upare.
David Mutambirwa, programs coordinator for Mutare Residents and Ratepayers Association (MURRA) called for the committee to embrace innovation, e-governance systems to improve its operational efficiency.
Mutambirwa challenged city fathers to prioritize renovation of idle council properties, that are losing value from disuse degradation while others are now illegally occupied by prospectors.
“Our views as residents on business and investment opportunities in the city to develop strong Private-Public Partnerships (PPP) is that council should be proactive to seek and approach investors.
“While we appreciate that sometimes bureaucracy and politics may not delay such partnerships, there is still need for the council to show that initiative to attract business investment in the city,” he said.
He added, “We are also worried that during such a lean period council has not shown probity in financial matters, as they spend revenue on retreats and cars for its management in spite of the service delivery challenges it is facing.”
Mutare city set up the Business Investment Committee to strategize on a sustainable revenue generation model, leverage the city’s proximity to the sea in Mozambique, and ease the burden on residents and ratepayers.
Previous efforts to resuscitate Pungwe Breweries, through direct cash injections have failed to bear fruit, while tenders previously flighted for a private partnership joint venture were not taken up.
Urban and local authority-run breweries countrywide have gone down under similar circumstances including the Kadoma Liquor Marketing, Simba Breweries, and Dandaro Marketing in Kwekwe, Go-Beer Breweries in Gweru, and Ingwebu Breweries in Bulawayo.
