BULAWAYO The cash-strapped Grain Millers Association (GMA) has requested a US$250 million loan from local banks to purchase grain from farmers.GMA met representatives of the Bankers Association of Zimbabwe (BAZ) to plead with the financial institution for a rescue package. Speaking in an interview with The Zimbabwean, GMA chairman, Tafadzwa Musara, said that millers were struggling financially following the dollarisation of the economy.
This followed the removal of the monopoly of the Grain Marketing Board in grain purchasing by government early this year. The money is required to purchase least 600 000 tones of maize and 400 tones of wheat. We are ready to go into a win-win relationship with the banking community, said Musarara.
However, the BAZ said it would only release the funds if the millers provided concrete sureties that they would pay back the money. Musarara said millers were running out of time and the situation was becoming desperate. If farmers fail to secure buyers, preparations for the next summer season would be in jeopardy, he said.
The milling industry employs close to 20 000 people, and failure to secure funds by the association poses a threat to a number of jobs.
Post published in: Economy