business meeting 20.09.10.jpgThe business community says government should introduce incentives to increase local investments so as to create jobs and restore macro-economic confidence.

The sentiments from the business community are being made when official information from the Zimbabwe Investment Authority (ZIA) shows that approved foreign projects are dominating local investment in terms of implementation due to lack of capital.

Zimbabwe National Chamber of Commerce (ZNCC) Advisory Council Chairman, Mr Luxon Zembe says government should come up with a long term funding scheme at cheap rates to enable local entrepreneurs to set up new business units in line with macro-economic recovery targets.

“The absence of long term funding is the major problem and we need to solve that issue. Government should also introduce incentives in order to motivate local investors,” said Mr Zembe.

While local companies are focusing on joint ventures with potential external investors, a local entrepreneur, Mr Kuda Munyawiri says the absence of loans at concessionary rates has made it difficult for local firms to expand and create new jobs.

“We do not know the future but if anything is possible, fresh capital injection is really important,” Mr Munyawiri said.

Zimbabwe has in the past three years witnessed an increase in foreign investors exploring business opportunities in key productive sectors but economic observers say it is important for government to assist local investors with capital requirements in order to consolidate economic gains.