Sanctions stall indigenisation funding

A worker carries tea plucked at Aberfoyle Tea Estates in Honde Valley last week. — Picture by John Manzongo

Herald Reporter
International financial institutions are reluctant to fund indigenisation because of the illegal sanctions imposed on Zimbabwe, parliamentarians heard yesterday. Appearing before the Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment, officials from the Ministry of Youth, Indigenisation and Economic Empowerment said efforts to get funding from the international market had hit a brick wall because of the sanctions.

Gokwe-Nembudziya legislator Cde Justice Wadyajena (Zanu-PF) chaired the committee meeting that was attended by stakeholders from economic empowerment lobby groups and youths.

“The ministry would have raised funds from the international market because we have had visits from the IMF, World Bank and South African banks but we have met stiff resistance because of the current situation of sanctions,” said acting director of indigenisation and empowerment Mr Michael Fungati.

“Even our local financial institutions should be having big windows of funding to all entrepreneurs who are expanding their businesses or who would like to rehabilitate and expand. That is what we would have expected but because of sanctions, it is difficult.” National Indigenisation and Economic Empowerment Board chief executive Mr Wilson Gwatiringa said it was difficult to fund new business because of poor financial backing.

Indigenous Business Women’s Organisation president Dr Jane Mutasa implored ministry officials to be innovative.
She said for indigenisation to succeed there was need for NIEEB to raise at least US$1 billion for local businesspeople.

Restless Development country director Ms Nomuhle Gola asked the ministry to involve other organisations that worked with their target groups.

Acting secretary for the ministry Mr Simon Masanga said they were likely to miss some development projects after Treasury allocated about 52 percent of the total monetary requirements for 2014.

“We have two sub votes within the ministry. First one is administration and general. Under this vote we bid for US$63 million and we were allocated US$40 million, leaving a shortfall of US$23 million.

“The second sub-vote for the ministry is on vocational training. We had bid for US$22 million. We were allocated US$4 million, leaving a shortfall of US$17 million.”