Govt sits on $300m Afreximbank loan

The loan was meant for the resuscitation of local industries, which are facing serious liquidity challenges.
Addressing journalists last week, Dr Kanyekanye said the delay to disburse the money was costing the economy.
“The Government must direct this issue at relevant ministries for the fund to be issued out because the $300 million could help.
“The Distressed Industries and Marginalised Areas Fund is not enough to resuscitate distressed companies,” he said.
“Many companies in Zimbabwe are financially handicapped. If all these funds are made available, they would go a long way in the economic recovery process.
“This is the time for companies to use the funds and there is no point sitting on them when they could be used now.”
He said if various facilities to resuscitate industry were availed, the face of local industry could be changed by increasing productivity levels.
“Liquidity is the major factor that has resulted in the stunted growth of the economy hence the need to come up with initiatives to address this problem.”
He encouraged government to allocate Dimaf and the Afreximbank loan to companies that were competitive as this was the best way to revive the industries.
“This fund should benefit companies that have the potential and competitive drive as this will quickly bring back the country’s economy to its feet.
“This will also help the small industries grow as well as create employment in the country because many people lost their jobs due to the economic meltdown,” Dr Kanyekanye said.
He lamented the shortage of cash in the country saying there was a need for big mining companies and other companies that are banking outside the country to consider bringing back some funds into the country.
“For example if a company is banking $1,2 billion outside the country, it could consider bringing back only $500 million to help with liquidity challenges.
“However this should not be legislative but Government could discuss it with the companies,” the CZI president said.
He encouraged the Government to work on its relations with the world so that local industries can get assistance from outside the country.
“Overseas development assistance is not coming to the country because of sanctions and I strongly feel that we have to deal with that as we don’t have money that is coming through at the moment,” he said.