The pledge is meant to assist the country revive its productive sectors. Agribank Chief Executive Officer, Sam Malaba, said the funds would be disbursed to deserving firms in the fourth quarter of the year.
“IDCSA has approved the $30 million loan facility to Agribank after assessing the political risk and other necessary reviews. It is also on that basis that IDCSA was happy with how the first tranche of the facility was used by companies that benefited,” he said. The first tranche was used to boost capacity utilisation in local firms.
“Now we have more Zimbabwean products on the market and some companies did not even retrench. So, it is also on this basis that they decided to release the second facility which will go to the manufacturing sector, tourism and other agro-industries,” Malaba said. “Capital repayments are over a period of six years as per our wish to provide medium-to-long term funding.”
Capacity utilisation by local firms is just above 50 percent, signaling that a lot still has to be done if the country is to revert to its former glory. Lack of credit lines, power outages, no foreign direct investment and poor commitment by government continue to haunt the manufacturing sector.
The government wholly owns Agribank, although privatisation plans are on course. The plans would see the latter assuming a 51 percent stake with the remainder controlled by a private partner.
Post published in: Business