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The $40 million fund was launched last year and is being disbursed through CABS.
Industry and Commerce permanent secretary Abigail Shonhiwa told the Parliamentary Portfolio Committee on Industry and Commerce that the Government was yet to avail its half.
“As of early March our partners had put in their half but as Government we had not yet put in ours,” she said.
“I am aware that Treasury is busy making efforts to raise the money.”
Shonhiwa said many companies were failing to access the money due to the stringent requirements to qualify for the loans.
She said her ministry had engaged CABS with a view to relaxing some of the conditions
“The conditions for accessing the facility should be reviewed and the bar should be lowered because we are dealing with companies under distress.
“There should also be a clear understanding between the partners so that the objective of setting up the fund is met and there is need to beef up this fund,” said Shonhiwa.
Director for Enterprise Development in the ministry Stanislaus Mangoma said many companies were failing to meet the criteria for accessing the loan facility.
He said most of the applications were still pending adding that to date only $3,1 million had been disbursed.
“There has been some preliminary contact with CABS. They have shown some flexibility in terms of interest rates and collateral for SMEs but for those listed on the stock exchange those old terms will apply,” he said.
A number of industries are operating below capacity as funding needed to retool and recapitalise has proved to be elusive and expensive.
Most Bulawayo companies have relocated to Harare and other cities as conditions for operating in the once industrial hub continue to deteriorate.
It is estimated that at least $2 billion in fresh capital is required to recapitalise industries in Zimbabwe.
In addition to Dimaf the Government has launched other funds like the $70 million Zimbabwe Economic Trade Revival Facility (ZETREF) for local industries to access. — New Ziana.
Online Reporter