adminThe confusion had deepened to the extent that the business leadership in Bulawayo and the region had to conduct several meetings to discuss the issue.
However, those companies that have benefited from other facilities would not be eligible for the fund.
Speaking in an interview on the sidelines of his party’s rally at Stanley Hall in Makokoba on Sunday, Prof Ncube, who chairs the Inter-ministerial Taskforce for the “Let Bulawayo Survive Campaign” said Cabinet had ruled that the first phase of the DIMAF focus on Bulawayo.
“There is absolute clarity on DIMAF because the Cabinet has ruled that the fund must go to Bulawayo companies,” said Prof Ncube.
He said Cabinet also agreed that another $10 million be released to add to the fund as confirmation to the initial plan after touring distressed companies in Bulawayo.
The taskforce team in its findings recommended that about $50 million was needed for the revival of the industries in the country’s second largest city.
Prof Ncube said his ministry was assessing progress in the other distressed companies facility, the $70 million Zimbabwe Economic and Trade Revival Facility (ZETREF) launched last year to show which companies had benefited.
Finance Minister Tendai Biti a few months ago said the ZETREF was now operational, and invited local businesses to start applying for funds.
Prof Ncube said those who benefited from ZETREF would not be considered for DIMAF, a fund administered through CABS, the official Government agent.
“We will let the fund be administered as would be set up by CABS. What we need to know is how many companies have accessed ZETREF so that they do not also access DIMAF,” he said.
“As a ministry, this is what we are doing and we will be done by the end of the week and submit a report to CABS but we cannot decide when CABS would complete its exercise. We are going to write to them with recommendations to say ‘can you now start accepting applications’ after we complete our exercise’.”
Prof Ncube said companies that would be eligible to access the fund were those that were visited by the Inter-Ministerial Taskforce Team.
“The modality is simple. Those companies which were visited are the ones which are in the basket, but we will continue to source other funds so that more of these could benefit as well.
“We will start with strategic companies, which would have the biggest impact on the economy once revived and those that would be able to assist other companies as well in the same line of business,” said Prof Ncube without giving examples of these companies.
He also dismissed claims that CABS was accepting applications from companies from outside Bulawayo.
DIMAF was mooted after concerns over closure and relocation of Bulawayo industries, which has left thousands unemployed.
The Government announced the $40 million in October followed by another $30 million during presentation of the 2012 National Budget last month.
In his closing remarks at the Zanu-PF 12th annual People’s National Conference at the Zimbabwe International Trade Fair grounds recently, President Mugabe said the disbursement of the fund was stalled by the stalemate in the inclusive Government.
Online Reporter