INFRASTRUCTURE Development Bank of Zimbabwe (IDBZ) chief economist Khutula Sibanda says Zimbabwe needs around $5 billion annually for trade and finance in the retooling of the industrial sector and infrastructure development.
BY SILAS NKALA
Sibanda made the remarks yesterday during a meeting of the Confederation of Zimbabwe Industries at the Zimbabwe International Trade Fair on the sidelines of the 59th edition, wherein he focused on manufacturing industry equipment needs as a way for the country to revamp productivity.
Sibanda said according to African Development Bank (AfDB) trade and finance for Africa was around $110 billion.
“According to the AfDB the study has discovered that the trade finance for Africa is around $110 billion after the establishment of around 34 African countries Zimbabwe included,” he said.
“For Zimbabwe, the insane debt is more than $1 billion. That figure summaries all the things we are to consider, if we are to retool the gap in trade finance is around $1 billion per year.”
Sibanda said the nation needs $5 billion for trade and finance and not withstanding that the nation cannot retool without infrastructure being put in place. He said $1,7 billion is also required for infrastructure development annually.
Sibanda blamed most production problems faced by industry on the poor transport network.
“Forty percent cost of production is added because of poor transport. We are not exporting because other initial value chains are not functioning,” he said.
“There are a lot of resources around us. So if you do what is needed the resources fly around you and you will succeed.
Zimbabwe has a lot of resources which industry must take advantage of,” Sibanda said.
He lamented that governance issues were frustrating resource utilisation in Africa and he urged policymakers to implement policies which favoured industrial development.