The National Social Security Authority (NSSA) has to fund local companies to save them from collapse, Bulawayo-based policy and economic analyst Butler Tambo has said.
BY MTHANDAZO NYONI
Addressing delegates at the Junior Chamber International guest night meeting last week, Tambo said NSSA should wake up from its slumber and fund local companies in dire need of capital rather than have its money locked up in collapsed banks every year.
“Pension companies are sitting on money and they are underutilising it,” Tambo said.
“This is the reason why NSSA is always losing millions of dollars in banks.
“Why can’t they lend local companies who are in dire need of finance? For example, a number of companies in Bulawayo do not even require more than $500 000 capital injections each.”
Tambo said NSSA could help resuscitate the ailing Zimbabwean economy.
In 2013, late economist Eric Bloch revealed that Bulawayo needed a minimum of $500 million to revive its industries after successive years of economic contraction that saw more than 100 companies folding.
NSSA could bail a number of companies in the country judging by the size of its investments
According to reports, NSSA has lost close to $500 million in closed banks since 2011.
This year it lost close to $500 000 due to the collapsed AfrAsia Bank (formerly Kingdom Bank).
In 2011, NSSA lost $9 million when ReNaissance Merchant Bank was placed under curatorship by the Reserve Bank of Zimbabwe after an investigation exposed financial mismanagement and corporate governance deficiencies that seriously undermined viability.