Dimaf still available

Oliver Kazunga Senior Business Reporter
THE Distressed Industries and Marginalised Areas Fund (Dimaf) meant to assist ailing companies is still available.

Dimaf was set up in 2011 primarily to resuscitate ailing companies with the government and Old Mutual agreeing to provide $40 million as seed capital.

Resources under the facility are administered by Old Mutual and the disbursement of loans is done by CABS, its subsidiary.

CABS managing director Simon Hammond said since the establishment of the fund, only $28 million has been disbursed to ailing companies.

“About $28 million has been disbursed to industry and we’re committed to ensure that the fund continues in future. We’re in discussions with the Ministry of Industry and Commerce to keep the facility going,” he said.

Hammond said despite the funding constraints in the economy, the government was committed to availing funding to bail ailing companies.

“The government has provided a guarantee and it’s very much committed to keeping the fund going despite the tight liquidity situation in the economy.

“Of the $28 million that has been disbursed so far, Bulawayo has benefited a largest proportion compared to companies from other cities,” he said.

Turning to Dimaf interest rates, he said: “It’s 10 percent which is relatively cheaper”.

Since the adoption of a multi-currency system in February 2009, liquidity challenges have dogged the economy thereby impacting negatively on the growth of industries.

This has been evidenced by low capacity utilisation in the manufacturing sector.

According to the Confederation of Zimbabwe Industries, capacity utilisation in the manufacturing sector remained depressed in 2015 closing the year at 34,3 percent due to a tight liquidity situation among other challenges.