A textile company in Bulawayo, Merlin Limited, which is under judicial management, has secured a partnership in order to resume its operations after delays of investment in the industry.
Merlin Limited expressed hopes of resuming its operations at minimum capital following delays in securing an institutional investor to inject at least $30 million into the industry according to The Chronicle.
“Following some technical delays in securing an institutional investor to inject at least $30 million required to revamp the whole production process at Merlin, it was decided that, as a way forward, the company could start with a minimum capital” said Cecil Madondo, Merlin’s judicial manager to The Chronicle.
The once Bulawayo textile giant was placed under judicial management in 2012 for the second time in 10 years. Merlin Limited is one of the companies that are still finding it hard to secure investment for full operation as Zimbabwe fails to attract investment in the country.
The country’s ability to attract foreign investors has in the past been frustrated by high costs of labour, erratic electricity supply, high taxes and poor transport infrastructure according to the Zimbabwe National Competitiveness Report.
Bulawayo, once a strong industrial hub has witnessed many companies closing down and lacking investment only to be replaced by churches as centers of worship. The World Bank ‘Ease of Doing Business’ has ranked Zimbabwe at number 183 a drop from last year’s number 182.
Merlin was established in the 1950s and employed about 1000 workers at its peak.
The textile company in 2011 was once put under provisional liquidation as of 30 June 2017 if it would not have found new investors to raise working capital and resume operations.