business meeting 20.09.10.jpgMembers of the business community have called on Government to come up with cheap rescue packages to ensure that local industry restores output to full capacity.

Industrialists have expressed concern over the slow pace at which several companies are restoring their productivity on the back of limited funds.

While the financial sector is still offering short term loans at an interest rate of at least 18 %, the major question is to what extent this facility can assist industry to recapitalise and realise profits in order to repay the debts.

This has therefore posed challenges on industry’s capacity to meet the projected 60 % rate by end of this year amid calls for Government to intervene with concessionary loans.

The Zimbabwe National Chamber of Commerce Vice Chairman Mr. Clever Madzara, says while industry is committed towards restoring output to full capacity, limited funds are hindering growth targets and it is high time government introduces an industrial rescue package in the 2011 national budget set for presentation next month.

‘There is nothing we can do because at the moment all is not well and more should be done for the benefit of the nation,” said Mr. Madzara.

But given the fact that the economy is also experiencing financial challenges and also taking into account that the banking industry is in the process of recapitalising, then does it mean that local firms should also rely on the loans or there are other workable systems to source funds and restore productivity?

 A mineral geologist Mr. Vimbai  Chakanetsa  says, companies should implement  income generating  policies to unlock cash resources as well as courting potential regional and international investors through joint ventures to access cash in exchange of equity.  

“ This is another essential element that can really unlock growth opportunities in the country and contribute to the growth of the economy,” added Mr. Chakanetsa.
While the economy is showing some signs of recovery, the revival of industry remains an important element in terms of job creation and overall economic growth to the extent that stakeholder commitment is the real solution to some challenges that are still hindering the full scale operations of companies.