Mthuli unveils US$30m industry, tourism fund

LETTICIA MAGOMBO

Finance and Economic Development Minister, Mthuli Ncube,  on Thursday unveiled two revolving funds to retool and develop industry and tourism sectors.

Speaking at the official launch in the capital, Ncube said US$22,5m will go towards retooling facilities purchasing new equipment and supporting value chains through the ministry of industry and commerce while US$7,5m will go towards upgrading facilities in the tourism sector.

“You may recall that in the formulation of the National Development Strategy 1 (NDS 1) the issue of value chains is high on the agenda. It is our view that these funds ought to go a long way in terms of supporting development of these value chains. In line with the national vision of attaining an upper middle income econom.

“The fund will go a long way to support respective companies with foreign currency requirements geared towards retooling development of value chains to increase production for both local and export markets. On the other hand, the tourism fund will go a long way towards resuscitation tourism companies which were mainly affected by the covid-19 pandemic.”

Speaking at the same event, the Minister of Environment, Tourism and Climate Change, Nqobizitha Mangaliso Ndhlovu, said: “From the tourism perspective it’s been a long time coming. We had hoped for this kind of facility for the sector even before the pandemic. So, we want to thank his excellency President Emmerson Mnangagwa who today has come to assist the industry.

“We will make full use of this facility which we know will go a long way in helping our small to medium tourism players as they were adversely affected by the Covid-19 pandemic, jobs were lost, some industries were closed completely and we hope that this is the beginning of an interesting journey.”

Mavis Sibanda, permanent secretary  in the Ministry of Industry and Commerce said: “We have been looking forward to these Special Drawing Rights (SDRs) and we look forward to the manufacturing sector receiving this US$22,5m. As you know in the NDS 1 we chose ten value chains which are prioritized so, the US$22,5m revolving fund will go towards retooling for new equipment, replacement of the requirements of the value chain. “

FNC Holdings CEO, John Mushayavanhu, who also spoke at the event, said:“As banks we have been asked to mobilize the US$30m from our own resources and lend to deserving applicants in manufacturing and tourism. I have moved around and toured some factories and some tourist facilities and I’m sad to say that some of the equipment that we have seen in these factories is pretty archaic and is in need of replacement. Some of the rooms that I have been to you really don’t want to spend the night there and they are in serious need of refurbishment and renovation and if you are serious about growing tourism we need to look into these aspects to improve the quality of our accommodation.”

He added that only deserving applicants would access the funds.

“As banks we are going to lend to deserving persons. We will use our lending criteria. Over the years there is a tendency among Zimbabwean borrowers that when a facility is guaranteed by the government it is a freebie and that they don’t have to pay back. Unfortunately in regard to these facilities us banks are not going to allow that. If you read the agreement, what it says is that we will only go to the Minister to honor the guarantee once we have exhausted all other means, and all the other means involve even sequestrating your estate. Before we go to the minister and say that this person has failed we will liquidate you so I urge you not to treat this as a freebie but a timely intervention by the minister to help you upgrade your business.”