The president of the Bankers’ Association of Zimbabwe, John Mushayavanhu, has refuted accusations that the country’s financial institutions were deliberately marginalising companies in Matabeleland by denying them loans to recapitalise their operations.
Addressing businesspeople at a stormy breakfast meeting organised by the Confederation of Zimbabwe Industries (CZI) in Bulawayo yesterday, Mushayavanhu said banks were keen on spreading their “risks” across geographic regions in the country and would not confine themselves to Harare.
“As banks, there is what is called concentration risks. We have to spread our risks by sector and by region,” said Mushayavanhu.
“Banks are forever looking for customers as far as possible in order to have what we call a diversified book. I don’t see why banks would say we don’t like Bulawayo.
“At the end of the day, banks lend money basing on project viability.
“What we have to realise is that over the last decade, we have not been servicing our machinery and buying any new technology.
“The implications have been that we are producing goods at higher costs compared to firms in China, for example.
“We can try to produce for the sake of producing, but that will not be viable. We (banks) can’t lend you money that you will lose because it’s not ours, but depositors’ money,” he said.
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But the immediate past president of CZI’s Matabeleland chapter, Ruth Labode, insisted banks were shunning companies in the region.
“We are indeed marginalised here in Matabeleland. I disagree fully with anyone who stands up and says we are not marginalised,” said Labode.
“Mushayavanhu, if you think Bulawayo industries are useless with their dilapidated machinery, if you think we are hopeless, why not close your bank and go elsewhere?
“Why run a bank at a place where there is no hope?” she said.
Another businessperson, Themba Sibanda, said the last thing they wanted to hear were lectures on technology because they knew that.
“It is clear to us that we need new technology, it is clear to us that we need to change the game plan about the revival of Bulawayo. We don’t need to be schooled about technology transfer and all that. What we need is funding,” he said.
The meeting was organised to coincide with the Zimbabwe International Trade Fair that ends today.
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