Firms must have clean tax records for $40m fund

In an interview, the Permanent Secretary in the Ministry of Finance, Mr Willard Manungo, said they were using a criteria that would effect positive changes in the companies’ operations in terms of profitability and employment creation.
He, however, said the ministry could not reveal the names of the shortlisted companies for security reasons.
“We are not yet in a position to reveal the names of the companies that were shortlisted or those that have benefited from the fund so far, but the criteria being used for assessing the applications is meant to facilitate profitability and employment creation,” said Mr Manungo.
“The applicants and their directors must have clean tax records and may be from any sector of the Zimbabwean economy. They must also have a sound credit standing, with a manifest willingness and ability to repay any facility granted.”
He said the applicants must also have skilled management teams in place to run their businesses.
“We need companies with sound business plans and clear evidence of the positive impact that the granting of the requested facility will have on their operations in terms of profitability and employment creation,” said Mr Manungo.
“The companies must establish that in their businesses, a minimum of 40 percent added value in Zimbabwe takes place.”
Although Mr Manungo said his ministry would not release the names of the beneficiaries, the Minister of Industry and Commerce, Professor Welshman Ncube, told Chronicle on Tuesday that his ministry would soon disclose the companies that would benefit from Dimaf to promote transparency.
He said the ministry was still in the process of compiling the information.
“We are still in the process of compiling the information and I am sure that by the end of this week we would be able to release the names of the companies that would benefit from the fund,” said Prof Ncube.
“Bulawayo businesses should be patient as we are still working on the list. There is no secrecy in the disbursement of the fund, but the process has to be done accordingly.”
Prof Ncube, who is the chairperson of the Cabinet taskforce on the revival of the city industries, said they shortlisted strategic companies that would surely revive the Bulawayo industries.
“The Cabinet agreed that the selection criteria should be limited to strategic companies with upward, downward and sideways linkages that would revitalise the Bulawayo industries and create employment opportunities for a large number of people in the city,” he said.
“For example if a company like Datlabs benefits, it would obviously give a huge impact to Bulawayo because it employs several people and pharmaceuticals will also benefit, while companies that provide packaging for the company get good orders that would also improve their business.”
He said small and medium businesses were not shortlisted to benefit from the fund.
“If you are an SME, the idea is that we will not include you in the list because SMEs do not suit the criteria. That is the philosophy and it is not a secret. We will continue to do what the Cabinet directed us to do,” said Prof Ncube.
Businesses in Bulawayo last week demanded the publication of the companies that benefited from the fund, saying it would promote transparency.
The Government short-listed 58 Bulawayo companies earmarked to benefit from the $40 million fund.
Out of the 58 companies, only 28 had applied for the fund as of last week.
The 28 companies would share $15 million, of which $2 million has already been disbursed.
Finance Minister Tendai Biti launched the $40 million under Dimaf in October last year following recommendation by the task force on the “Let Bulawayo Survive” campaign.
However, the fund has been mired in controversy amid squabbling in the Inclusive Government with some saying it was not meant for Bulawayo companies alone.