|Firms face closure|
|Monday, 30 July 2012 15:51|
Liquidity constraints continue to negatively impact on local industries with two firms in Mutare, Zimbabwe Coffee Mills and Karina Textiles on the verge of collapse after failing to access funding under the Zimbabwe Economic Trade Revival Facility (ZETREF) which has already availed US$40 million to other firms.
In an interview in Mutare, Confederation of Zimbabwe Industries immediate past president for the province Mr. Henry Nemaire said the Zimbabwe Coffee Mills and Karina Textiles are facing imminent closure owing to unavailability of funds.
Mr Nemaire said coffee production has decreased from 7000 tonnes to less than 500 tonnes hence the imminent closure of Zimbabwe’s Coffee Mills while cheap imports have affected local textile industry.
“We have two firms that are likely to fold operations in the next few days, that is, the Zimbabwe Coffee Mills and Karina Textiles. Zimbabwe Coffee Mills has been affected by low production of coffee which declined from 7000 tonnes to less than 500 tonnes, hence the issue of volumes is affecting the firm. Karina had its challenges regarding the importation of textiles from neighbouring countries and Mutare industries has failed to access funding under the ZETREF,” said Mr Nemaire.
The country’s manufacturing industry has been limping for the greater part of the year as funding mechanisms adopted by government are failing to yield positive results owing to stringent measures attached to various facilities availed to the industry.
Despite funding constraints facing the local industry, power shortages have affected the productive sectors of the economy hence the need for a collective effort to save the industry from folding operations.