adminfirst priority is agriculture, followed by mining, information communication technology, manufacturing, distribution and services, and tourism is way down the line.”
He was speaking at the Business Exchange Forum on the opening day of the Sanganai-Hlanganani World Travel and Tourism Africa Fair 2012 in Harare yesterday.
“Other sectors, such as mining and agriculture, have sold their stories very well. As bankers we now understand their business models.
“Your story is not known in the banking sector.”
This is notwithstanding the fact the tourism sector is one of the key sectors that Government is targeting to underpin economic growth in the long run.
Zimbabwe’s tourism sector grew by 13 percent last year.
Mr Guvamatanga also lamented some of the “structural issues” constraining lending to the tourism sector, especially the fact that the structure and composition of total bank deposits is not consistent with long-term investment requirements of the key economic.
“The tourism sector requires long-term capital, between three and seven-year money, but the major problem we are facing is that deposits remain short term, from which we cannot generate infrastructure funding,” he said.
Official figures show that total bank deposits of US$3,7 billion as at July 31 this year consisted of US$57 million in long-term deposits, US$1,9 billion in demand deposits and US$1,1 billion in savings and short-term deposits, reflecting the banking sector’s limited capacity as a source for the much-needed long-term funding.
The figures also show that as of July, total bank deposits were dominated by demand deposits (which took up 53,7 percent) followed by savings and short-term deposits (30,9 percent) and long-term deposits (15,4 percent).
In view of the limited funding opportunities for tourism in the local banking sector African Sun group chief executive Dr Shingi Munyeza proposed the setting up of a financial institution to cater specifically for the tourism sector — a “Tourism Bank”. The BAZ president, however, lamented the limited scope in Zimbabwe’s financial services sector.
“In an ideal situation there is an existence of developmental banks, leasing firms, equity financiers, commercial banks, investment banks and suchlike.
“However, our financial services sector is still evolving, and you tend to see a commercial bank expected to play the entire scope of financial services roles,” he said.
“There is an opportunity in the sector for these various roles but unfortunately everyone is transforming their licence into a commercial one.”
Nothing stops anyone from starting a Tourism Bank, which would be ideal for development of the sector.” Cabinet has since approved the National Tourism Policy, which seeks to harmonise all policies and operations in the sector. It is also expected to result in the improvement of financing for the sector’s infrastructure and for marketing.
leeroy