czi logo.jpgThe Confederation of Zimbabwe Industries (CZI) says there is urgent need to harness internal resources to reduce the country’s debt so as to improve both the investment climate and country’s creditworthiness. 

 

The proposal by industry to improve the country’s investment climate and credit rating comes at the back of efforts by several local firms to attract lines of credit for recapitalisation following months of low capacity utilisation.

 

 

Confederation of Zimbabwe Industries President Mr. Joseph Kanyekanye said a debt strategy which harnesses internal resources in debt clearance must be adopted so as to improve the country’s creditworthiness and investment inflows.

 

czi president.jpg“We should have a clear structural policy which gives attention to debt so as to improve the country’s credit rating.

 

“This should be done through harnessing internal resources in order to clear the outstanding debt,” said Mr. Kanyekanye. 

 

Mr. Kanyekanye called for the finalisation of the establishment of the One Stop Investment Centre as a way to improve the investment climate.

 

While the recent World Bank Doing Business report ranked Zimbabwe number 159 out of 183, the country has seen growing interests by foreign firms to invest in key sectors of the economy.

 

Zimbabwe has a foreign debt amounting to  6 billion dollars and currently there is debate over how to clear the debt, with Finance Minister Tendai Biti in favour of declaring the country a highly indebted country in the hope that international financial institutions will cancel the country’s debt, while some economic experts believe Zimbabwe can exploit its resources to pay back what it owes.