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NewsDay

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Informal sector — RBZ facility to boost trade

Opinion & Analysis
THE Reserve Bank of Zimbabwe (RBZ)-owned lending group Homelink’s provision of a $15 million loan facility to the Killer Zivhu-led Zimbabwe Cross-Border Traders’ Association (ZCBTA) could not have come at a better time.

THE Reserve Bank of Zimbabwe (RBZ)-owned lending group Homelink’s provision of a $15 million loan facility to the Killer Zivhu-led Zimbabwe Cross-Border Traders’ Association (ZCBTA) could not have come at a better time.

Comment: NewsDay Editor

Therefore, the key word for the cross-border traders should be investment in the future for both the country and their families. We believe the move by the RBZ should spur other economic sector players to urgently put various other packages into effect.

This obviously will stimulate economic activity within the informal sector. Granted the informal sector is always shunned by financial institutions as many do not have the required collateral.

It is hoped that at the heart of the RBZ loan package will be measures to help the low-income earners and uplift their lives using the soft loans.

While we applaud Zivhu and Homelink for penning this well-deserved package for millions of Zimbabweans, few precise details are available — the package contains a laundry list of measures for the ZCBTA to spell out later — but we expect the loans to ensure the informal traders are not systematically excluded in favour of the elite few.

It is important, therefore, that direct spending on ZCBTA member-families and low-income households should find its way into consumption quickly.

There is no doubt that this stimulus package for the informal market traders is coming against the backdrop of a disappointed market in which the majority of Zimbabweans are struggling to make ends meet.

Zivhu should be reminded that the $15 million should be put to good use, stimulate the sector and not serve the interests of the ruling class. Zimbabweans have suffered enough and the gesture by the RBZ is commendable if this can yield results going forward.

In fact, the Zanu PF regime is the one that should be designing economic policies to strengthen Zimbabwe, and not necessarily increase their popularity as the country gravitates towards the 2018 elections.

Indeed, the facility should assist in stemming the tide of externalisation of scarce hard currencies in the economy.

We have no doubt that Zivhu and his association will choose a financially sound partner to lease the facility against unscrupulous fly-by-night organisations. There should be transparency especially when choosing the partner with a view to protecting their money and the ZCBTA membership.

We call upon the RBZ to put up another package to revive the dying industry to protect citizens from losing their jobs. The country’s economy is at a crossroads and a sense of collectivity should prevail given the fact that politicians have already failed the people of this great nation.

The fact that the informal sector membership does not have creditworthiness means that government must do a lot to empower them. That means there may be reason to revise some policies retarding progress on the market such as the Indigenisation Act and Statutory Instrument 64 (SI64) because ZCBTA members will be buying goods from neighbouring countries for resale here. And with SI64 in place it will be difficult, hence, the need for government to relook at the measures.

Again, Finance minister Patrick Chinamasa and Industry minister Mike Bimha should look at ways of stimulating trade following the RBZ timely boost.