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Sukulwenkosi Dube Plumtree Correspondent
VICE-PRESIDENT Phelekezela Mphoko has urged banks to reduce interest rates which he said remained too high thereby discouraging businesses from borrowing.
Speaking yesterday at the official opening of Golden Harmony Shopping Complex in Plumtree, VP Mphoko said financial institutions had a crucial role to play in promoting the government’s agenda of developing communities.
Banks recently reduced interest rates to between six and 10 percent from an average of about 30 percent following a directive by the Reserve Bank of Zimbabwe.
“A number of emerging businesses can’t access loans due to high interest rates and this is adversely affecting the growth of businesses,” said VP Mphoko.
He said banks should focus on volumes because once interest rates are reduced more people will apply for loans.
The VP said the government was aware of the challenges faced by emerging businesses and was committed to addressing them.
He said the government would also ensure commercial activities were decentralised instead of being concentrated in Harare and Bulawayo.
VP Mphoko said locals should play a leading role in providing essential services in their respective communities.
He said investment and economic development was the responsibility of locals.
“As a community you shouldn’t expect an investor from another district or province to come and develop your area because they’ll shortchange you. Investors should be locals who should take advantage of the available business opportunities,” said the VP.
VP Mphoko warned businesses against charging exorbitant prices for their goods and services saying the goods should remain affordable to the majority of people.
He said those in the diaspora should also invest in their communities.
VP Mphoko said it was time Plumtree grew into a big town and not just train station as is the case now.
He applauded the proprietor of the Golden Harmony Shopping Complex, Micah Sibanda for opening a state- of-the-art supermarket. He urged other members of the business community to also invest in the town.
“There is a ready market for goods and services in Plumtree. This is confirmed by the great numbers of cross border traders who buy their wares from Francistown in Botswana for resale here,” he said.
In an interview, Sibanda said the new complex comprises a supermarket, bakery, butchery, restaurant and bar.The complex has created 85 jobs.
The supermarket is the second to be opened within the Plumtree CBD.
derick.khumalo