saviour kasukuwere 15.11.10.jpgGovernment has raised concern over mining firms that are shunning local financial institutions, saying it defeats the indigenisation and economic empowerment programme.

The concerns come amid reports that local mining firms are banking with foreign owned financial institutions thereby starving local industries of the much needed long term loans as foreign banks keep their money in offshore accounts.

In an interview in Harare, the Minister of Youth Development, Indigenisation and Empowerment, Cde Saviour Kasukuwere said this development is against the empowerment agenda, hence the need for mining firms to utilise indigenous financial institutions for the growth of the local economy.

New developments that indigenous mining firms have also joined the bandwagon in the sector by opting to bank with foreign financial institutions, have also angered the government which is likely to crack the whip next week.

Information gathered show that over US$450 million from mining firms is outside the country.

Analysts say if that amount of money is put in local financial institutions, it will assist in the revival of the local economy instead of being used for assisting ailing European economies.