News / National
No money to fund Zimbabwe indigenisation initiatives
26 Sep 2012 at 05:12hrs | Views
Treasury has released less than 10 percent of the $6 million it allocated to the National Indigenisation and Empowerment Board in the 2012 national budget, the chairman Mr David Chapfika has said.
He said the board had survived through borrowing, with minimum support from Treasury.
"The National Indigenisation and Empowerment Fund has failed to grow due to non-disbursement of reasonable funds by Treasury.
"What we are getting has managed to sustain the operations of the board with little left to fund empowerment initiatives for indigenous people," he said.
Mr Chapfika said the board was pressing for the enactment of a Statutory Instrument that would allow it to collect levies from beneficiaries of the empowerment programme.
"In that way we can mobilise more funds to help other aspiring individuals and acquire more resources," he said.
He said the NEEB was also raising working capital by borrowing through empowerment bonds, strategic aid, as well as getting lines of credit from banks.
Mr Chapfika said some financial institutions were reluctant to offer long term lines of credit and loans to indigenous business.
"They demand collateral which most locals do not have hence limiting their chances of acquiring loans to finance their operations," he said.
Meanwhile, an indigenisation indaba is expected to be held in November this year.
Mr Chapfika said the indaba would mainly focus on laying out a proper framework on empowerment.
To date various empowerment initiatives have been put in place to benefit indigenous people.
These include community and employee ownership schemes that have been launched in some parts of the country.
He said the board had survived through borrowing, with minimum support from Treasury.
"The National Indigenisation and Empowerment Fund has failed to grow due to non-disbursement of reasonable funds by Treasury.
"What we are getting has managed to sustain the operations of the board with little left to fund empowerment initiatives for indigenous people," he said.
Mr Chapfika said the board was pressing for the enactment of a Statutory Instrument that would allow it to collect levies from beneficiaries of the empowerment programme.
"In that way we can mobilise more funds to help other aspiring individuals and acquire more resources," he said.
He said the NEEB was also raising working capital by borrowing through empowerment bonds, strategic aid, as well as getting lines of credit from banks.
Mr Chapfika said some financial institutions were reluctant to offer long term lines of credit and loans to indigenous business.
"They demand collateral which most locals do not have hence limiting their chances of acquiring loans to finance their operations," he said.
Meanwhile, an indigenisation indaba is expected to be held in November this year.
Mr Chapfika said the indaba would mainly focus on laying out a proper framework on empowerment.
To date various empowerment initiatives have been put in place to benefit indigenous people.
These include community and employee ownership schemes that have been launched in some parts of the country.
Source - New Ziana.
