Nqobile Bhebhe

FOUR local financial institutions are ready to disburse nearly US$70 million as part of a US$100 million Africa Import and Export Bank (Afreximbank) facility to recapitalise local companies, Industry and Commerce minister Welshman Ncube has said.
TN Bank,   FBC Bank, BancAbc and NMB Bank would handle the facility.                                                                                       
Ncube said: “These banks have already signed agreements with Africa Import and Export Bank (Afreximbank) on how to operate the facility. Local companies may access the funds through the Industrial Development Bank of Zimbabwe (IDBZ), Post Office Bank (POSB), Agribank and ZB bank. It is up to industry to use these financial institutions to access the resources.”
Ncube was addressing delegates attending a one day International Business Conference at the Zimbabwe International Trade Fair on Wednesday under the theme: “Key issues that need to be tackled to re-equip the Zimbabwean industry into a high tech and volume output competitive manufacturing sector in the region centre.”
Ncube urged companies to take advantage of potentially large markets within the Common Market for East and Southern Africa (Comesa) and South African Development Community (Sadc) as preferred destinations for exports.
“As the region prepares for the grand tri-partite free trade area, more access to market opportunities would emerge and more competition would result,” said Ncube.
Comesa and Sadc are in talks aimed at setting up a single monetary union and a free trade area by 2016. A tripartite summit is scheduled for South Africa this month.
Alhough Afreximbank has availed considerable resources for local industries, the pace of disbursement could be slow in relation to industry requirements, Ncube said.
“Government appreciates the efforts of these banks in making lines of credit available. Internally government originally availed US$20 million under the Special Drawing Rights (SDR) for distressed companies fund which was subsequently leveraged by US$50-70  million and transformed into ZETREF (Zimbabwe Economic and Trade Revival Facility),” he said.
Ncube said the current situation where 80% of retail shelves of
basic commodities was taken up by imported goods was not only unhealthy but unsustainable in the long-term, given that 60% of the manufacturing sector inputs are from agriculture.
On imports, Ncube said the economy continued to absorb a disproportionately large amount of finished products, with the latest balance of payments projections showing total imports rising from US$$3,2 billion in 2009 to US$3,6 billion in 2010.
“This imbalance is further aggravated by the fact that the composition of exports is highly concentrated on raw materials, with mining contributing 52% of total exports in 2009, agriculture 13% and manufacturing contributing 18% in the same year,” he said.

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