cash notes.jpgZimbabwe’s export sector is in need of at least US$100 million to kick start a value addition strategy aimed at making sure that the country reaps maximum benefits from the exportation of goods.

The funds will assist local companies in acquiring machinery to process locally produced commodities into finished goods.

In a move aimed at ensuring that local exporting companies reduce their dependency on raw commodity exports, players in the export sector are in talks with key government ministries about the mobilisation of capital at concessionary interest rates in order to enable firms to purchase working capital required in the production processes of export oriented goods.

Zim-Trade Chief Executive Officer, Miss Priscilla Pillime confirmed to ZBC News that the country’s export revival will depend on the availability of capital as research by the trade organisation shows that companies are still struggling to recapitalise in spite of the sudden recovery in productivity levels.

“We hope that at least US$100 million will be adequate enough to assist the export oriented companies and such a process is vital in the future,” she said.

The local industry is failing to take advantage of regional free trade regulations on the back of depressed productivity as companies cannot afford the prevailing short term loans from the financial sector whose interest rates range between 10% and 18%.

According to the Chamber of Mines, the limited capital inflows have resulted in delays by several mining companies in setting up refinery plants that are being considered important in increasing export receipts from the sector.