RBZ mulls fund to help local firms

THE Reserve Bank of Zimbabwe (RBZ) is working on ways to create a fund that will assist local companies to be competitive and starve off competition from foreigners.

BY MTHANDAZO NYONI

Speaking during a workshop organised by the Engineering Iron and Steel Association of Zimbabwe (EISAZ) yesterday in Bulawayo, central bank deputy governor, Kupukile Mlambo said local companies needed to be capacitated in anticipation of an influx in foreign companies that would want to set up shop in Zimbabwe.

“We need to support industry; I came specifically because I wanted to listen to these discussions here. We toured a number of factories here in Bulawayo and most of them were in the engineering sector. What fascinated me there was that there is a lot of talent that is there but fund, especially, foreign currency (is a challenge),” Mlambo said.

“What we are trying to do as RBZ is to try and find ways of creating fund that can assist local industry because when President (Emmerson) Mnangagwa says Zimbabwe is open for business he means it. So companies are going to come. But we have our own companies that we need to protect. We want to create a certain fund. We have created a number of them already.”

RBZ has so far created empowerment and productive facilities amounting to $268,59 million to assist local industries.

It created women empowerment fund ($15m), gold support facility ($10m), cross-border facility ($15m), tourism support facility ($15m), business linkage facility ($10m), microfinance revolving facility ($10m), persons with disability ($5m), horticulture facility ($10m), export finance facility ($70m) and university education support facility ($50m).

Mlambo said most of these facilities, except gold support facility, were being administered by banks.

As such, he urged companies to approach their banks to secure the loans.

Following the coming in of a new political dispensation, the government has embarked on a programme to lure investors from across the globe through re-engagement with the international community after over a decade of isolation.

A number of companies in Zimbabwe, and Bulawayo in particular, are in dire need of retooling, as they are using obsolete machinery, designed in the early 1940s.


According to the Confederation of Zimbabwe Industries 2017 manufacturing sector survey report, companies with older machinery and equipment did not record any growth in the period under review, an indication that industry without machinery is dead.

Output growth was only recorded by companies whose machinery was less than 10 years old.

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2 Comments

  1. mari iya yakuzobiwa manje !!!, hapana zviripo kuda kungotsvaga nzira dzekuba mari chete uku

  2. We dont need you fund we need cash in the banks…we need the resignation of your boss for printing worthless sh!t …we need your ex boss Gono arrested and imprisoned for theft…we need zimra to be fair and transparent with dealing with chinese and Nigerian shop owners who never pay vat yet operate on cash basis for their products…we need clueless chinamasas resignation …we need a proper labour law that will ensure workers get paid fairly and to proper international rates…we need banks investigated to see if client withdrawals are fair…we want a currency we can go with to any sadc country that has value…”Stop It” stop insulting the common sense of every zimbabwean with your corrupt quasi bull…fix the health ministry where doctors take home $329. a month…fix the education ministry where teachers are ready to down tools because they are tired of being treated inferior…We dont want handouts …free teeshirts and caps…free promises take your fund and shove it where the sun dont shine…

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