Chronicle Editor
Nqobile Bhebhe – [email protected]
The Ministry of Industry and Commerce has urged players in the leather, cotton, pharmaceutical, fertiliser and agro-processing sectors to tap into the US$22,5 million Retooling for New Equipment and Replacement for the Value Chains Revolving (REVCRF) facility by submitting applications.
The ministry said the fund is now operational. Those eager to access the revolving facility should submit an application letter through selected participating banks — FBC, CBZ, CABS, AFC, ZB Bank, Steward and Ecobank for assessment.
The banks will then forward the letter accompanying the support for the project to the Treasury through the respective ministry.
“The Ministry of Industry and Commerce would like to advise that the US$22,5 million Retooling for New Equipment and Replacement for the Value Chains Revolving (REVCRF) is operational,” said the ministry in a statement.
The cotton, leather and pharmaceutical sector were each allocated US$5 million while the fertilizer and agro-processing were allocated US$4 million and US$3,5 million respectively.
Zimbabwe was allocated SDR677 million (US$958 million equivalent) by the International Monetary Fund (IMF), which is part of the SDR’s General allocation of US$650 billion that was released in 2021.
While SDRs are not a currency, they are a critical international reserve asset created by the IMF to supplement the official reserves of member countries to provide liquidity.
The SDRs were meant to address the long-term global needs for reserves, building confidence and fostering resilience and stability while enabling member countries to cope with the adverse impact of the Covid-19-induced crisis.
In line with the country’s drive to transform the economy into a middle-income status by 2030, the Government directed that the funds be used prudently, with accountability and transparency to support key economic projects.
It is from these resources that the Treasury channelled part of the funds towards supporting key economic sectors such as horticulture, industry retooling, tourism, and smallholder farming irrigation systems.
A total of US$80 million has been set aside for productive sector funding and the Government has invited local businesses to start accessing the money to boost the country’s economy.
The breakdown of SDR disbursements towards the productive sector includes; a US$30 million horticulture revolving fund, a US$22,5 million industry retooling for value chain revolving fund, US$7,5 million tourism facilities services development/ upgrading revolving fund, and the smallholder farmers irrigation infrastructure development fund to the tune of US$20 million.
When the funding was unveiled last year, various sector players commended Government for the intervention and appealed to the Government to ensure the cost of the funding is affordable to businesses and consider facilitating the speedy release of the resources to the qualifying applicants.
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