Zimdef income surges

Business
THE Zimbabwe Manpower Development Fund (Zimdef)’s income surged by 25% to $43 million in the financial year ended December .

THE Zimbabwe Manpower Development Fund (Zimdef)’s income surged by 25% to $43 million in the financial year ended December largely due to improvements in the collection of the training levy and debt management strategies, latest financial figures reveal.

Gamma Mudarikiri Own Correspondent

Audited financial statements for the year ended December 2012 released yesterday show that Zimdef’s income rose from $34,4 million the previous year to $42,9 million, representing a 25% increase in income.

The training levy contributed the bulk of the income which Zimdef collected — $38,3 million from $31 million the previous year — representing a 23% rise.

“The improved performance was largely due to a combination of an aggressive collection strategy, improved debt management policies and sterling co-operation from employers contributing the 1% training levy under such harsh economic conditions,” part of the Zimdef financial statement  reads.

The 1% levy is collected from eligible employers as per Statutory Instrument 74. Zimdef envisages benefiting from a better performing economy which it says has the potential of boosting the levels of contribution by eligible employers.

Zimdef, in the period, disbursed  funds towards human capital development projects including St Patricks Hotel, Kwekwe Polytechnic, Chinhoyi Hotel School, Manicaland and Great Zimbabwe University which resulted  in non-current assets  growing to $22,5 million up from $12,2 million recorded in the previous year.

Interest on investment, however, marginally improved to $2,6 million up from $1,8 million registered in the period while income from management training bureau was almost flat at $1,2 million.

Skilled manpower training and development remained Zimdef’s core business with more than $10 million disbursed for industrial attachment and apprenticeship allowances.

Polytechnics received grants for training equipment and consumables worth $2,5 million which was 19% above last year’s disbursements for the same period.

Administration costs,  however,  soared to $6,3 million  up from $5,1 million recorded in the previous year although management said this was within best practice, as it represented only 2,1%  of all costs while the fund’s mandate was allocated at 79%.

Zimdef was established according to the Manpower Planning Development Act number 36 of 1986 with the mandate to finance development of critical and skilled manpower in the country. The High and Tertiary Education  minister is a trustee of the fund.

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