Local firms cry foul as only one Dimaf application is approved

Local firms cry foul as only one Dimaf application is approved
Published: 21 March 2012 (1965 Views)
ONLY one Bulawayo company has had its application for funding under the Distressed Industries and Marginalised Areas Fund approved. Most other organisations have failed to meet the stringent requirements by CABS, which entered into an agreement with Government to disburse the money.

Industry and Commerce Permanent Secretary Ms Abigail Shonhiwa said Government had engaged the building society to relax the requirements.

Over 60 companies from Bulawayo had indicated their need for assistance to Government last year due to shortages of finance to recapitalise their operations after the decade-long recession in the country.

Government entered into a partnership with CABS and Old Mutual to provide US$40 million to companies in Bulawayo.

"A number of them (companies) indicated the conditions were stringent. By the time we made a follow-up, it was clear that no disbursement had been concluded.

"Others indicated they had not received a positive response because the requirements were stringent," she said.

Ms Shonhiwa said only one pharmaceutical company had its application approved.

She said Industry and Commerce Minister Professor Welshman Ncube had briefed cabinet on the developments and was tasked to engage CABS so that some of the conditions were relaxed.

The building society's requirements include provision of collateral, audited accounts for the past two years and interest rates in the region of 15 percent a year.

Ms Shoniwa said CABS had shown willingness to relax the conditions for small-to-medium enterprises, although this would not apply to listed companies.

"Indications are that they have shown some flexibility on the interest rate and collateral but there is no movement on companies listed on the Zimbabwe Stock Exchange."

Director for Enterprise Development in the ministry Mr Stanislaus Mangoma, said of the US$40 million  provided for the facility, the Government had pledged US$20 million. A further US$10 million was provided for in last year's budget, although nothing had been disbursed yet.

Ms Shonhiwa said a number of companies countrywide had inquired about the availability of the funds to assist their operations.

She said companies from other provinces were being assisted under the Zimbabwe Economic and Trade Revival Facility, funded to the tune of US$100 million, under a partnership between Zimbabwe and the Afreximbank

- zimpapers

Tags: Dimaf, Foul, Firms,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

List of Zimbabwean celebrities who became politicians

by Mandla Ndlovu | 22 April 2019 | 148 Views

NSSA pensioners are 'dying a little each day'

by Tondo | 22 April 2019 | 97 Views

The Gukurahundi Solution

by The Gukurahundi Solution | 22 April 2019 | 88 Views

Is there the biblical 'Lot's wife' among us?

by Tondorindo | 22 April 2019 | 92 Views

Just enjoying our Katuruturu as it is now Zituruturu

by MuHwisiry Chaiyeiye | 22 April 2019 | 79 Views

'Army now fed up with civilians' Jonathan Moyo says

by Mandla Ndlovu | 22 April 2019 | 149 Views

WATCH: Apostle Vutabwashe blasts Mnangagwa's government

by Mandla Ndlovu | 22 April 2019 | 166 Views

Analysts defend Tinashe Kachingwe

by Mandla Ndlovu | 22 April 2019 | 98 Views

'Corruption and cronyism worrying Mnangagwa' ZANU PF MP says

by Mandla Ndlovu | 22 April 2019 | 128 Views

ZANU PF launches 10 000 youths to fight for a mine?

by Mandla Ndlovu | 22 April 2019 | 130 Views

Cyclone Idai victims resist tent homes

by Staff reporter | 22 April 2019 | 93 Views

Price controls the only way to go, says Mutodi

by Staff reporter | 22 April 2019 | 85 Views

Chamisa faces VPs Dilemma

by Staff reporter | 22 April 2019 | 106 Views

Cyclone Idai donations 'looting' soldiers freed

by Staff reporter | 22 April 2019 | 79 Views

Churches taking anti-sanctions crusade to opposition parties

by Staff reporter | 22 April 2019 | 73 Views

Registrar of Deeds dragged to court

by Staff reporter | 22 April 2019 | 63 Views

Chamisa urged to back Mwonzora's bid

by Staff reporter | 22 April 2019 | 97 Views

Bosso, Dembare beaten again

by Staff reporter | 22 April 2019 | 86 Views

Minister fouls Mnangagwa's plans fouled by Owen Ncube

by Staff reporter | 22 April 2019 | 100 Views

Tsvangirai turning in his grave, says daughter

by Staff reporter | 22 April 2019 | 77 Views

Mnangagwa pleads with Diasporans

by Staff reporter | 22 April 2019 | 76 Views

Chamisa unveils Mwonzora, Mudzuri rescue plan

by Staff reporter | 22 April 2019 | 77 Views

11 dead in kombi, Honda fit head-on accident

by Staff reporter | 22 April 2019 | 89 Views

War vets slam bread price hike

by Staff reporter | 22 April 2019 | 128 Views

Charumbira calls for truce in boundary row

by Staff reporter | 22 April 2019 | 105 Views

Mnangagwa hopeful on economy

by Staff reporter | 22 April 2019 | 120 Views

Revolution is the great teacher

by Reason Wafawarova | 22 April 2019 | 98 Views

Econet raises RTGS$479 287 for Idai relief through EcoCash

by Staff reporter | 22 April 2019 | 86 Views

Chief Mvuthu's family in fresh wrangle

by Staff reporter | 22 April 2019 | 87 Views

'Mnangagwa to crack whip on errand businesses'

by Staff reporter | 22 April 2019 | 87 Views

Artisanal miner shot dead

by Staff reporter | 22 April 2019 | 89 Views

'Zimbabwe public finances in bad shape'

by Staff reporter | 22 April 2019 | 44 Views

It's time for South Africa to rethink the economy

by Tapiwa Gomo | 22 April 2019 | 83 Views

'Mnangagwa won't take Zimbabwe anywhere'

by Staff reporter | 22 April 2019 | 92 Views

Military rifle recovered from poachers

by Staff reporter | 22 April 2019 | 90 Views

MDC led council not going back on tariff increase

by Staff reporter | 22 April 2019 | 79 Views