admin
Minister Moyo told journalists at the Bulawayo Press Club on Monday that Government had deposited its pledged share to the fund and now the onus was on the building society to release the money to needy companies.
He said Finance Minister Tendai Biti could not be blamed for the failure by local companies to access the money.
“The Government played its role and the problem is with CABS not us,” Minister Moyo said.
However, Mr Terry said CABS was assessing all applications for funding from companies which met their criteria.
“We can safely say that all applications that meet the Dimaf criteria are being assessed upon submission to us.
“As of 21 September 2012 we have approved a total of $14 771 250,00 and disbursed $11 486 250,00,” he said.
Benefiting companies have been drawn from five areas — Bulawayo, Victoria Falls, Harare, Goromonzi and Marondera.
Mr Terry said the bulk of money was given to Matabeleland companies.
“A total of 29 companies have accessed the fund and 17 of these are from Matabeleland.
“The 17 companies from Matabeleland have accessed a total of $9 283 000,00,” he said.
The remaining $2 203 250,00 was shared among other companies in the country.
“Companies that have benefited from the fund are in various sectors of the economy including agriculture, manufacturing, service and distribution.”
He, however, would not disclose the names of the companies which benefited from the fund, referring this paper to the Ministry of Finance.
Last month, businesspeople in Bulawayo demanded to know the names of the companies that had benefited from Dimaf.
Minister Moyo said people in the city should, instead of accusing the Government of not releasing Dimaf money, be complaining that the money was not enough.
“Fifty million dollars is too little to revive Bulawayo industries, 85 companies cannot recover from that little funding, more money is needed for Bulawayo,” he said.
Government partnered with Old Mutual to set up Dimaf, with both parties pledging to deposit $20 million each into the fund.
Initially, Dimaf was supposed to benefit Bulawayo companies only but has since been extended to cover other areas, raising the ire of business people in the region who want the city’s status as the country’s industrial hub to be restored.
For companies to be considered for funding, they must provide collateral, audited financial accounts for the past two years, projections for CAPEX loans covering the tenure of the loan, budgets and cash flows and turnaround strategies including a business plan.
Most companies say the requirements are too stringent to meet.
Online Reporter