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Confederation of Zimbabwe Industries (CZI) meeting with Vice-President John Nkomo imploring the Bulawayo business community to unite and lobby for the speedy release of the $40 million.Speaking during a heated breakfast meeting at a Bulawayo hotel, Vice-President John Landa Nkomo said it was unfortunate that there were stringent measures imposed on already ailing companies by CABS, which is the formal agent disbursing the resources.
The Minister of Finance, Mr Tendai Biti, launched the $40 million fund for Bulawayo industries in October last year after counsel by the inter-ministerial task force on “Let Bulawayo Survive”.
Old Mutual complemented Government by availing $20 million to set up the $40 million facility.
“These companies are sick and to ask for audited financial statements is too much to ask for considering that some of them were no longer operational while others have downsized operations,” said VP Nkomo.
He said there was a need for the Bulawayo business community to unite and lobby for the speedy payout of the Dimaf.
“Lifuna ukwenzelwa ngubani? Bulawayo people should stand up and make noise about this issue,” said VP Nkomo.
To date, about $1 million has been channelled to companies that had applied for the $40 million Government rescue package.
The Reserve Bank Governor, Dr Gideon Gono, urged the business community in Matabeleland not to over-depend on the political leadership to address de-industrialisation in the region.
He said Bulawayo companies lacked a masterplan in their approach to Dimaf. Dr Gono said gone were the days to blame political leadership to sort out issues of economic activity in the region.
“We need to identify the economic strength of Matabeleland to address the challenge of de-industrialisation. Deliberate policies must be drawn and implemented to promote economic activity in the region. We must not just look upon our political leaders to say do this for us,” said Dr Gono.
He said this in response to calls by the Matabeleland Chamber of Industries president Dr Ruth Labode that there were reports that $30 million of the $40 million Dimaf fund meant for firms in Matabeleland was being disbursed to companies in Midlands.
“In the case of Dimaf, you need to go where you think there is an issue. Go and occupy where you think the money is. If it is the Ministry of Industry and Minister Biti (Tendai) or CABS, go and occupy the offices to fight for the money. I am not advocating for violence but I am only saying go and propose for the funds,” he said.
Dr Gono said Government made a deliberate policy to allocate $40 million under Dimaf, adding that it was a fact that the policies have not been adequately followed.
He said Dimaf should ensure the resuscitation of companies such as Cold Storage Company (CSC) and the National Railways of Zimbabwe (NRZ), which used to form the core of Bulawayo’s industrial hub status.
“Funds from the Zimbabwe National Road Authority (Zinara) should also be made available to Bulawayo companies in order to speed up its recapitalisation,” said Dr Gono.
He said Government remained committed to spurring capitalisation of the country’s industry as evidenced by the availing of the Zimbabwe Economic Trade and Revival Facility (Zitref) and the Dimaf.
“It is the role of the business community to facilitate the disbursing of this fund than to cry, cry and cry. No, no, no and no,” said Dr Gono.
Voicing their plight to VP Nkomo at the same occasion, the business community bemoaned the slow pace at which the fund was being disbursed, saying the conditions imposed on them delayed the payout.
Dr Labode said: “The $20 million that came from Government under Dimaf must be drawn from CABS and given to the Reserve Bank of Zimbabwe for speedy disbursement to Bulawayo companies.”
The Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland region chairperson, Mrs Ntombenhle Moyo, added:
“We agree that Bulawayo has got the best brains but how can we produce if we are not well-equipped. Dimaf should be channelled towards ailing industries in Bulawayo.”
ZNCC Matabeleland region vice-chairperson Mrs Sheila Sidambe said liquidity challenges in the economy were exacerbated by some banks that kept offshore funding, which otherwise could be in the country to support programmes such as Dimaf.
The business community has of late called for the publication of companies that would benefit from Dimaf to avoid abuse of the fund.
Online Reporter