welshman ncube 09-03-11.jpgIndustry and International Trade Minister, Professor Welshman Ncube has cited the effects of the illegal sanctions and confusion between banks and the Ministry of Finance as some of the reasons that have hampered the development of industry thereby affecting the turnaround of the country’s economy.

Responding to why industry is not developing in a question and answer session in the House of Assembly, Professor Ncube said the country’s failure to source long term lines of credit is affecting industry’s recovery through lack of required capital.

Zimbabwe was suspended from accessing lines of credit from international institutions such as IMF and The World Bank under sections of the Zimbabwe Democracy and Recovery Act (ZIDERA) that was crafted by the US administration in retaliation to Zimbabwe’s land reform programme.

Professor Ncube said apart from sanctions, industry has not managed to access lines of credit that have been released by AfreximBank and deposited in local banks in September last year by the Ministry of Finance due to a slight confusion between the banks and the ministry.

“Industry has been given an unsatisfactory excuse by the banks whenever it made enquiries about the money [and] a proper frame work on how to disburse the money has not been crafted by the Finance Ministry,” Professor Moyo said.

He noted that the ministry in question is indicating that it submitted the required guidelines last year.

Professor Ncube said the standoff has left the money idle for the past 6 months but however said he has organised a meeting between permanent secretaries from his ministry and the Finance Ministry to get the issue resolved.