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amid reports that only two businesses from Matabeleland region have applied for the fund.
Industries are reportedly frustrated and confused whether to apply for the CABS loan scheme advertised last week because they feel if they do, they would not be eligible to apply for the $40 million Distressed Industries and Marginalised Areas Fund (DIMAF).
The Confederation of Zimbabwe Industries president for Matabeleland region, Dr Ruth Labode, said in an interview on Sunday her organisation was concerned that industries and businesses from the region were not applying for the fund.
Although not giving names of the companies that had applied as the process was still in progress, Dr Labode said prospective applicants most of whom should be distressed companies could be reluctant to apply because they felt if they did so they would not be considered for the DIMAF.
“We met as industry and encouraged our members to apply for the Old Mutual fund that was advertised recently, but when we inquired with CABS, only two applications had been received from this region while the majority was coming from other regions.
“We expect everybody to apply for this fund not just industry, but even service industry. We could be happy if we are talking about 20 to 30 companies having applied so far. The fund is a national cake and is open to anyone and our industries should not be scared to apply for it because it seems they think if they do they would not be eligible for the DIMAF,” said Dr Labode.
Dr Labode said as business leadership in Bulawayo and the region, they had resolved to lobby political leadership in the region to articulate concerns of the industry at Cabinet level to expedite release of the fund.
“Until Cabinet sits on the DIMAF issue, we can never do anything as industry. All we are doing now is to probe leaders in Matabeleland and so far we wrote them letters last week presenting our position on the fund and the delay that has occurred,” she said.
There has been confusion over whether DIMAF was a national cake or meant for Bulawayo and Matabeleland distressed industries as it was launched with concerns about the dying industries in the former country’s industrial hub.
Old Mutual advertised a new loan facility last week where businesses should apply to CABS to access the fund.
The scheme brought a lot of confusion as industry and business felt the DIMAF had been hijacked.
Recently, the business council in Bulawayo has been holding a series of meetings deliberating about the issue and also accusing CABS of introducing stringent requirements that were putting off industry from the region.
The business council felt that by inviting applications from outside Bulawayo, CABS had sidelined industries from Matabeleland because they are frustrated by the delay in the disbursement of the DIMAF.
However, Dr Labode said the CABS loan facility was a national project that was open to anyone from any part of the country.
She said the DIMAF was also a national cake, but the first phase of $40 million was dedicated to industry in Bulawayo.
Dr Labode also said the $30 million announced by Minister Tendai Biti when he presented the 2012 budget was not an additional figure for DIMAF, as the Government had only added $10 million to the $20 million it pledged when DIMAF was launched to complement the Old Mutual pledge.
The Minister of Industry and Commerce Professor Welshman Ncube recently said the Government was yet to deliberate on the modalities to disburse $40 million fund for the revival of ailing industry through the Let Bulawayo Survive Campaign.
Bulawayo companies have expressed frustration over delays in the disbursement of the fund, which is expected to boost the city’s economy.
derick.khumalo
Online Reporter