The government has failed to release $5 million for the Distressed Industries and Marginalised Fund (Dimaf), which was set up to rescue struggling companies in cities such as Bulawayo.
Own Correspondent
Industry and Commerce ministry acting permanent secretary Staneslous Mangoma told Southern Eye Business that Treasury had not released the money promised early this year.
“Treasury is still to release the additional $5 million it had promised to add on Dimaf,” he said.
The Finance ministry early this year, had indicated that it would be releasing an additional $5 million to Dimaf after most companies that were eyeing the rescue package in Bulawayo had complained that they had been overlooked.
Dimaf is a $40 million loan facility set up by the government in 2010 to cushion the manufacturing industry against the unavailability of long-term funding.
However, only $13 million has been disbursed to ailing companies countrywide.
According to an assessment of the state of industry conducted by a ministerial task force late last year, industries in Bulawayo alone need $73 million to recapitalise.
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A report released by the of Industry and Commerce ministry early this year showed that 60 companies in the city, once the industrial hub of Zimbabwe, were on the verge of collapse. This could add to the 85 companies which closed in Bulawayo last year, predominantly from the clothing and textile sector representing 74%, motor and construction sectors constituting 22% and 4% respectively.
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