czi president.jpgLocal industry plans to mobilise US$3 billion under a Zimbabwe Industry Revival Fund aimed at solving challenges affecting production in key sectors of the economy.

 

 
According to industry revival proposals submitted by the business community to an International Monetary Fund (IMF) delegation which is in the country to assess economic growth, the proposed facility seeks to solve working capital constraints, improve the availability of long-term finance and facilitate infrastructure investment.

Confederation of Zimbabwe Industries (CZI) President, Mr Joseph Kanyekanye said while the IMF delegation is impressed with the facility, industry is concerned with the institution’s failure to pledge funds for industrial growth.

“We are coming up with the facility and we have told the IMF delegation about its effects in terms of industrial recapitalisation,” said Mr Kanyekanye.

The Zimbabwe Economic Policy Analysis and Research Executive Director Unit, Dr Gibson Chigumira, says in spite of the IMF wait and see attitude on economic progress, the facility should focus on workable systems to increase production capacity in the economy.

“We should just forge ahead with the scheme because this will translate into increased production volumes,” said Dr Chigumbura.

The IMF delegation, which arrived in the country last week for a 7-day business visit, has held meetings with Government ministries, industry and households on fiscal and monetary policy management within the economy, amid calls from economic experts for government not to let the Bretton Woods Institution dictate economic policies such as the Structural Adjustment Programmes, which created economic hardships for third world countries.

The US$3 billion facility, which is expected to be operational by mid next year, will be sourced from regional and multilateral institutions such as the African Development Bank, PTA Bank, IDC South Africa and the Development Bank of Southern Africa.