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Farirai Machivenyika-Senior Reporter
THE Ministry of Industry and Commerce has still not received the US$30 million for on-lending to industry it was allocated from the US$961 million Special Drawing Rights released by the International Monetary Fund to alleviate economic challenges spawned by the Covid-19 pandemic.
The ministry has identified businesses in the leather value chain, cotton, pharmaceuticals, glass manufacturing, fertiliser and rural industrialisation sectors.
The Permanent Secretary for Industry and Commerce, Dr Mavis Sibanda, told a Southern Africa Parliamentary Support Trust and Parliament’s Portfolio Committee on Industry and Commerce workshop to monitor and track use of the SDRs and implementation of projects under the NDS1 held recently, that the delay was affecting implementation of Government programmes.
The money allocated to the ministry for on-lending to industry would be managed by banks and be a revolving fund.
“We have not received the money, so the issue of how we have used the money does not arise,” she said.
“We submitted our concept note on how we want to use the money to the Ministry of Finance and they said what we have proposed is acceptable, but up to now the funds have not been released.”
Dr Sibanda said they have engaged Treasury on the issue and agreed on how the money was going to be used and the disbursement modalities with the banks.
Sectors they had identified were for import substitution and those which had potential to earn the country foreign currency through exports and to repay their loans.
Dr Sibanda said rural industrialisation in particular was important to uplift livelihoods of the rural population.
Director of the Parliament’s Budget Office Mr Pepukai Chivore said it was incumbent on parliamentarians to engage Finance and Economic Development Minister Professor Mthuli Ncube when he presents his mid-term budget review.
Treasury has so far released US$279 million from the SDR funds.
Online Reporter