Vice-President Joice Mujuru is expected to lead a high-powered Confederation of Zimbabwe Industries (CZI) delegation to Dubai seeking to raise at least $2 billion to bail out ailing companies.
The trip has been set for June 6 to 9.
Speaking at a CZI annual general meeting in Harare yesterday, the industry’s body president Joseph Kanyekanye said there were numerous business opportunities available in Dubai.
“Our aim is to get $2 billion on a revolving fund to revive the industrial sector in Zimbabwe,” said Kanyekanye.
Industry and Trade minister Welshman Ncube a fortnight ago said 87 companies closed shop and over 20 000 workers lost jobs in Bulawayo last year.
The government has since set up a seven-member ministerial taskforce to deal with the industrial problems throughout the country. Kanyekanye said investors in Dubai had expressed an interest in investing in food security.
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He said the business community was in a “crisis” as a result of its failure to access funding.
He said substantial amounts of funds could be made available to companies through pension funds rather than to wait for bailouts promised through bilateral arrangements.
He said through pension funds at least $50 million could be unlocked every month to finance business operations.
“The funds don’t have to come from the Budget or the fiscus but there is need to have an instrument asset that can be used to raise finances for the business community,” Kanyekanye said.
Kanyekanye said banks were charging a minimum interest of 25% per annum, which was high, a development that has seen a number of companies failing to access loans.
“We have been on a tour visiting our businesses in Harare, Bulawayo, and Gweru and from what we have observed entire industries have the same crisis, of no funding,” said Kanyekanye.
“Next we are heading to Mutare to look at industry challenges and try to address these problems.”