Lack of funds to continue – Ncube

Industry and Commerce Minister, Welshman Ncube, said it would take time for lines of credit to be available – even though

the ministry was making efforts to curb the economic meltdown. The major factor that has led to low capacity utilization and the subsequent relocation or closure of many companies in Bulawayo is the unavailability of affordable and reasonable finance, he said.

Capacity utilisation in local industry is currently hovering between 45 and 47 percent, (according to government statistics)

Lack of credit lines and the use of old machinery are the major factors in the economic setback, which has seen many industries in Bulawayo, either relocating to the capital or completely shutting down operations.

Ncube said the recent signing of the Bilateral Investment Promotion and Protection Agreement (BIPPA) with Botswana was not a direct translation of the unlocking lines of credit. He said that even if that was the case, a lot of arrangements and

deliberations still have to be made prior to the anticipated access to credit lines. Despite the signing of the BIPPA two or so weeks ago, it will take time for lines of credit to be unlocked but the ministry is making efforts to increase lines of credit, he said.

Government was deliberating with a number of international sectors that might aid unlock credit lines in order to resuscitate the local industries, he said. We have approached a number of players like Afrexim Bank, which is responsible for most of the money circulating in the economy, the AB bank and the investment promotion whereby the Government is encouraging the merger of local companies with international ones that will bring capital into our industries, he said.

Ncube said three major industries had relocated from Bulawayo within the last 12 months and that at least 26 different small

factories had downed tools in the same period due to the lack of access to reasonable and affordable credit lines.