The Common Market for East and Southern Africa (COMESA) is considering a US$ 1 billion rescue package for local companies through its financial unit the, PTA bank.In terms of the arrangement, the PTA bank will consider the financial requirements for several industries across the country through providing loans at affordable interest rates of at least 10% per annum.
COMESA Secretary General, Mr Sindiso Ngwenya confirmed that the regional trading institution is working on measures to facilitate the recovery of local companies through ensuring that the PTA bank plays a leading role in providing funds to banks for lending by local companies.
â€œ This initiative is already in the process and we hope that once everything is finalised then it will unlock the relevant financial resources for Zimbabweâ€™s industry which is still trying to recover from the financial challenges,â€ said Mr Ngwenya.
The local industry is in need of fresh capital to revive production units.
Curently, several firms are experiencing difficulties from accessing funds from the financial sector whose interest rates of 18 percent at short term periods are being considered expensive.
Expectations are high that the proposed facility from the PTA Bank will enable local companies to realise their potential of increasing profit margins and broaden the scope of business activities at a time the government is focusing on policies to restore macro- economic stability through measures aimed at stimulating savings, attracting investment, facilitating price stability and increasing exports.