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The two countries on Monday signed an agreement to start operationalising the $64,3 million lines of credit Botswana pledged to help resuscitate distressed local companies in the manufacturing and agriculture sectors four years ago.
In separate interviews, economic commentators said the signing was long overdue as the pledge was made in February 2009 following the formation of the inclusive Government.
“Although it has taken longer than anticipated, the finalisation of the agreement is what we have been waiting for. Now that the deal has been signed we expect to see the disbursement of the credit lines taking place in the next few weeks to come.
“It is our hope that priority will be given to Bulawayo companies in the manufacturing sector. If possible, relevant authorities should prioritise allocating the bulk of the money to the manufacturing sector so that the city regains its industrial hub status,” said an economic analyst, Ms Wendy Mpofu.
She said Government should ensure that the resources under this facility were not mired in controversy as has happened to the $40 million Distressed Industries and Marginalised Areas Fund (Dimaf).
Recently, confusion has taken centre stage with regard to the disbursement of Dimaf as stakeholders have given contrasting views that the resources were not meant to rescue Bulawayo companies alone.
Ms Mpofu said at least half of the resources should be channelled to the manufacturing sector in Bulawayo.
Affirmative Action Group former national vice president Mr Sam Ncube echoed similar sentiments adding that the resources under the Zimbabwe/Botswana agreement should also be disbursed at concessionary rates so that distressed firms stimulate productivity.
“We also appeal to relevant authorities to ensure that the credit lines from the $64.3 million are accessed at concessionary rates,” he said.
“If things could go our way, the manufacturing sector in Bulawayo should be allocated $30 million to restore the city’s industrial hub status. Last year, there was an Inter-Ministerial Committee on Let Bulawayo Survive Campaign that was also set up to look at the economic challenges crippling industrial productivity in the country. The committee gave Bulawayo the first priority in terms of availing funding to revive city industries; the same need to be done now that the money is available.”
Mr Ncube said Government should work on eliminating the bureaucracy that has also affected the Dimaf facility.
He said the Government should ensure that the disbursement of the credit lines would have begun in the next two weeks.
Another economic analyst Mr Trust Chikohora said finalisation of the $64,3 million agreement was what industry had been waiting for.
He said the funds would go a long way in stimulating industrial productivity.
“We hope it (finalisation of the agreement) will stimulate the fulfilment of similar pledges other countries made following the formation of the inclusive Government in 2009. The most important thing now is that the funds are available and banks to disburse the money should ensure that the resources are distributed to deserving firms in time,” he said.
He said access to the funds should be based on merit adding that the disbursement needed to be executed in a transparent manner to ensure that deserving firms secured the resources.
“Those that deserve accessing the credit lines should receive the resources from a normal financial analysis point of view. We also hope that the interest rate will be reasonable because the funds are not from the local market but from other countries with stronger economies,” he said.
Under the terms of the agreement, the two countries agreed that the facility would cover the export of goods and services from Botswana to Zimbabwe as well as joint venture deals.
About 70 percent of the funds could be allocated to the manufacturing sector, while the remaining 30 percent would go towards other sectors of the economy.
Online Reporter