Ratify BIPPAS, CZI urges govt

Perturbed by the debilitating power crisis that continues to cripple industry, the Confederation of Zimbabwe Industries has made proposals to alleviate the crisis.

CZI President Joseph Kanyekanye told the recent 2012 economic outlook symposium that the monopolistic Zimbabwe Electricity Supply Authority could not justify its generation costs.

Mismanagement and an ineffective ZESA board and regulation issues were destroying industry, he said. “It is critical to ensure that the availability and cost of credit do not constrain economic activity. The current situation in terms of accessing credit lines is definitely hampering economic activity. The Multi-Donor Trust Fund must be activated,” he said.

If government would speedily ratify BIPPAS, $2 to $5 billion could be generated, in the form of revolving credit administered by local and international banks with the participating governments giving guarantees to mitigate risk and encouraging banks to lend directly to Zimbabwean firms.

The Botswana line of credit gives up to five years to pay with minimum loans of $500 000.Other proposed measures include securitisation to include a secondary bond market. Kanyakanye also said restoring relations with the West would facilitate help from the World Bank and the IFC. He called on government to deal with the sanctions issue.

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