zimplats construction.jpgGovernment is set to extend industrial production targets to mid next year in order to mobilise adequate funds required to ensure full swing recovery of key economic sectors.

 

 According to proposals by the business community for consideration by the  Ministry of Finance ahead of the 2011 national budget, there is need to extend production targets of 60 percent by end of this year to June next year, as several firms are still experiencing production challenges due to limited funds for recapitalisation.

 

Zimbabwe National Chamber of Commerce Chairman, Mr. Davison Norupiri, said while government is considering extending the production targets duration, industry is concerned with the failure by fiscal authorities to come up with a rescue package to increase output.

 

“Government has already told us that they want to extend the industrial production targets on the back of funding challenges that have resulted in the drop in terms of production levels for industry,” he said.

 

The local industry which has been in the process of reviving production is in need of at least US$2 billion.

 

However, the Ministry of Finance has in the past few months been under pressure from stakeholders over its failure to allocate funds to banks at concessionary interest rates for the revival of industry.

 

Government earlier this year set an industry production target of 60 percent, but some firms in key sectors such as mining, agriculture, construction and tourism are operating at an average of between 30 and 40 percent.