Business / Economy
Zimbabwe manufacturing sector engages South African banks
08 Apr 2011 at 11:59hrs | Views
Zimbabwe's manufacturing industry is in talks with South African banks over a US$260 million loan for the purchase of machinery under a 5-year recapitalisation plan.
In a move aimed at reviving productivity for the manufacturing industry which is currently battling underutilisation of capacity due to financial constraints, players in the sector are in negotiations with South Africa banks.
Confederation of Zimbabwe Industries (CZI) President, Mr. Joseph Kanyekanye said financial institutions from the neighbouring country are interested in assisting local manufacturing companies with loans on the realisation that local financial institutions are facing challenges.
"We are still in talks and once everything is done, we shall provide further details on the matter," said Mr. Kanyekanye.
The financial requirements of the manufacturing industry have been revised upwards from US$1 billion to at least US$3 billion according to statistics from the Bankers Association of Zimbabwe.
Demand for loans from firms within the sector has increased by more than 40% since January this year.
Although productivity for the manufacturing companies remains subdued, the CZI is also calling upon Government to consider a financial rescue package for manufacturing firms with a view to boosting the availability of locally produced goods in local retail markets.
In a move aimed at reviving productivity for the manufacturing industry which is currently battling underutilisation of capacity due to financial constraints, players in the sector are in negotiations with South Africa banks.
Confederation of Zimbabwe Industries (CZI) President, Mr. Joseph Kanyekanye said financial institutions from the neighbouring country are interested in assisting local manufacturing companies with loans on the realisation that local financial institutions are facing challenges.
"We are still in talks and once everything is done, we shall provide further details on the matter," said Mr. Kanyekanye.
The financial requirements of the manufacturing industry have been revised upwards from US$1 billion to at least US$3 billion according to statistics from the Bankers Association of Zimbabwe.
Demand for loans from firms within the sector has increased by more than 40% since January this year.
Although productivity for the manufacturing companies remains subdued, the CZI is also calling upon Government to consider a financial rescue package for manufacturing firms with a view to boosting the availability of locally produced goods in local retail markets.
Source - Byo24News
