Zimpapers Logo

However, the fund has been mired in controversy since its launch and some businesspeople have since dismissed the fund as a political gimmick since very little progress has been made towards the disbursement of the $40 million fund, with $3 million reported to have been disbursed since the launch of the fund nine months ago.

We believe it is about time the Government and the implementing agency came to an agreement over the administration of the fund for the benefit of industry and also for the credibility of both the Government and CABS.

Relations between the two major stakeholders got to a point where Government even threatened to go it alone due to differences in the way the money was being disbursed since there was a feeling that the conditions were too strict for distressed companies with the requirements more suited to normal firms.

While CABS at the weekend said it had started disbursing funds under Dimaf, the Government said the information given by the building society was distorted.  CABS said it had received 49 applications with 10 of them having been approved since the launch of the fund while Government said it had forwarded more than 60 names of firms for consideration.

“There is nothing for Bulawayo companies in the first $3 million they have disbursed so far. The bank did not consult us and continue to refuse that the first $40 million under that fund is for Bulawayo. They do not want to accept Cabinet decision,” said Professor Welshman Ncube, the Minister of Industry and Commerce.

It seems there is very little consultation between Government and CABS, a situation that is definitely not good for the administration of the fund and ultimately the revival of industry, especially firms in Bulawayo. We believe that since both the financial institution and Government put money towards the setting up of the fund, there should be constant liaison between them and consultation with the targeted industries so that the intervention achieves its desired purpose.

As it is, some firms have possibly gone under in the past nine months and some are now saddled with more debts for lack of a rescue package while the Government and CABS haggle over modalities. Our firms deserve better treatment and the earlier the Government and CABS come to an understanding on the modalities surrounding the fund and speak with one voice, the better for all of us.