HomeBusinessDimaf has $3m ready for borrowing

Dimaf has $3m ready for borrowing

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THE Distressed Marginalised Areas Fund (Dimaf) has $3 million readily available for borrowing by businesses and various projects are being assessed for possible support, an official has said.

BY TARISAI MANDIZHA

Dimaf was formed in 2010 to help companies retool. Government and Old Mutual were supposed to inject $20 million each. To date, Old Mutual has put in $27 million. Old Mutual’s subsidiary, CABS, manages the fund.

CABS acting managing director Simon Hammond said the availability of money for the revolving fund was determined by borrower payoffs.

“There is $3 million readily available and the society is assessing various projects for possible funding,” Hammond said.

Confederation of Zimbabwe Industries president Charles Msipa said there was need for more initiatives like Dimaf to resuscitate industry.

“It is positive that there is $3 million readily available. But there is need for more significant amounts of money for debt funding which is affordable and available for short as well as long-term funding as currently a lot of the capital projects in Zimbabwe require a lot of money,” Msipa said.

He said Dimaf was a good initiative and many companies had since benefited although others had failed to access funding due to rigorous requirements.

Msipa said industry required two types of funding: debt funding and shareholder equity funding.

“Some of the companies in Zimbabwe are at the stage that they are so distressed and do not qualify because they are now a risk. We must understand that Dimaf is funding to the business but some businesses actually need (new) shareholding to inject new capital,” he said.

Industry and Commerce Minister, Mike Bimha has in the past complained that Dimaf funds were inadequate while the terms and conditions were too stringent for ailing companies to be able to access the fund. He said government has engaged Old Mutual and CABS to relax the terms and conditions.
Companies that required Dimaf support have to produce audited accounts for the past five years and collateral. Ends.

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