The US$100 million Zimbabwe Economic and Trade Revival Facility is being affected by a low uptake as companies fail to comply with the tight lending conditions.According to findings by the Parliamentary Portfolio Committee on Industry andÂ International Trade, few companies have benefitted from the facility amid stakeholder concern over whether theÂ Ministry ofÂ Finance which is responsible for the disbursement of the loan scheme, is committed to the restoration of industrial productivity.
While it has emerged that the tight lending schemes are being made to avoid huge default rates on the back of limited financial inflows, the Zimbabwe National Chamber ofÂ Commerce chief executive officer, Mr. Andrew Matiza says the Ministry of FinanceÂ should engage Afreximbank, the main financiers of the scheme, toÂ solve challenges leading to the low uptake of the facility.
â€œWe hope something can be done, as for now we are really not happy with what is happening,â€ said Mr. Matiza.
The Business Council of Zimbabwe Executive Secretary, Mr. John Mufukare says although multilateral lending institutions have pledged support to revive companies, there is need for fiscal authorities to introduce policies that boost productivity.
â€œWe really are also amused with what is happening, but we hope something can materialise for the benefit of the nation,â€ Mr. Mufukare said.
The Zimbabwe Economic and Trade Revival Facility was introduced in October 2010 to assist manufacturing companies in restoring production to full capacity.
Economic observers have encouraged relevant authorities to introduce incentives that benefit industry which is struggling to recapitalise.