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Harare Bureau
THE Reserve Bank of Zimbabwe (RBZ) has unveiled a $10 million loan facility for the capacitation of small scale oil producers.

This comes as the apex bank has been making recommendations to increase production so as to cut the country’s import bill.

Addressing beneficiaries at the launch of the loan facility to Zimbabwe Small Scale Processors’ Association (ZISSOPA) on Wednesday, RBZ deputy governor Dr Jesimeni Chipika said the loan facility is meant to support the agro-industry processing sector which falls under the Zim-Asset’s value addition and beneficiation cluster.

“Downstream industries need financial support, so we are here to witness the official launch of $10 million Homelink support to ZISSOPA. It is an agro industry processing sector, therefore this facility is meant to support the value addition and beneficiation cluster of the Zim-Asset,” Dr Chipika said.

The deputy governor said the RBZ was aware of tough conditions that the oil processers are operating in.

“Small scale oil processers have been operating in a manufacturing sector which is characterised by low capacity utilisation.

“This is attributable to structural and infrastructural bottle necks such as erratic power, obsolete machinery and dilapidated infrastructure as well as lack of capital which has had a negative impact on value addition and beneficiation,” she said.

Dr Chipika also highlighted that Homelink has already availed a revolving fund for the purchase of cotton seed for oil production.

“Under this scheme Homelink has already availed a $2 million revolving facility for the purchase of cotton seed from Cottco and ZISSOPA members are already drawing seed from Cottco. There will be a  second phase of the scheme that will target soyabeans for oil and livestock feed production,” said the deputy governor.

She said the Small to Medium Enterprises were immensely contributing to the country’s gross domestic product (GDP) and employment hence the central bank saw need to support the sector.

In an interview on the sidelines of the launch, Homelink lending manager Paradzai Berere said the loan is meant to empower small-scale oil processers.