Chronicle Editor
Leonard Ncube
Victoria Falls Reporter
GOVERNMENT is engaging financial institutions to try and clear bottlenecks in accessing the tourism Covid-19 stimulus fund, which is meant to cushion industry players from the adverse impact of the pandemic, a Cabinet minister has said.
Treasury came up with a $500 million Tourism Support Fund in guarantees for tourism sector players to access working capital in the form of loans from banks.
A total of $20 million was meant to provide seed capital to kick-start a Tourism Revolving Fund while Value Added Tax (VAT) payable by tourists for accommodation and visitor services was waived. The fund is part of an $18 billion Economic Recovery and Stimulus Package by the Government aimed at re-invigorating the economy following the slowdown induced by Covid-19. There are, however, reports that some banks were charging as high as 50 percent interest for the cushion funding.
Responding to concerns by industry players about bottlenecks in accessing the fund, Environment, Climate, Tourism and Hospitality Industry Minister, Nqobizitha Mangaliso Ndlovu, explained that the Government had only undertaken to guarantee the loan funding for industry players.
“Operators should link up with the Zimbabwe Tourism Authority. Meetings have been going on to find clarity and I think it’s much easier if operators register with ZTA,” said Minister Ndlovu.
“This is not a Government fund but it’s coming from the banks. We are still engaging on the issue of interest and the Government is only there to guarantee repayment in the event that you fail to pay.
“We have submitted our presentations to the Ministry of Finance and we wait to hear from them.”
Managing director for Motsamai Safari Lodges, which entered into partnership with the Forestry Commission and is constructing a five-star-lodge in Matetsi, Mrs Cecilia Bhebhe, said accessing the Covid-19 fund was a hustle.
“We had hoped to complete our project in May but we were affected by Covid-19. Now we have a challenge in accessing Covid-19 funds, which could have come in handy in our project,” she said.
“It seems there are challenges between the Government and banks and we now have to source funds from an expensive source where commercial banks are charging interest rates of up to 59 percent yet the Government would have charged 20 percent.”
Minister Ndlovu, who was on a recent tour of Forestry Commission concessions in Hwange and Binga districts, admitted there was a need to increase support for the tourism sector to ensure strong recovery from the crippling Covid-19 lockdown.
Provision of liquidity support to all productive sectors is critical in protecting employment through preventing and minimising Covid-19 induced lay-offs. The tourism sector was one of the hardest-hit as a result of international travel restrictions imposed after the outbreak of Covid-19. — @ncubeleon
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