czi president.jpgThe local manufacturing industry says production volumes are likely to remain depressed this year due to tight lending policies which have resulted in firms failing to recapitalise.

According to 2012 Economic Outlook Data compiled by the Confederation of Zimbabwe Industries (CZI), companies are experiencing challenges in accessing credit lines.

CZI president, Dr. Joseph Kanyekanye said although government and industry last year held meetings to ensure that lending conditions on industrial rescue packages are relaxed, nothing has materialised so far.

“We have been waiting for the facilities but nothing is materialising for the benefit of industry,” said Dr Kanyekanye.

Players in the manufacturing sector are now calling on government and central bank authorities to ensure that foreign-owned banks allegedly keeping their money outside the country, keep a greater part of their funds locally, to boost loan facilities for companies.

Although industry has set a target of 70% growth from the 57,2% that was registered in 2011, economic experts have raised concern that while the data might reflect a rebound in terms of productivity, several companies across the country are still facing financial problems.