The Financial Gazette

BULAWAYO — Over 50 companies have been short-listed as potential beneficiaries of a government fund set up last year to curb deindustrialisation in the country’s second largest city.
Government last year rolled out the Distressed Marginalised Areas Fund (DIMAF), a US$40 million fund that seeks to shore up companies facing collapse due to lack of long-term capital and working capital constraints on the domestic market.
The fund has since been plunged into confusion and political bickering stalling its release.
Under this fund, government undertook to inject US$20 million with mortgage financier, the Central African Building Society, contributing the balance.
Ministry of Industry and Commerce director of enterprise development, Stanslaus Mang-oma, said 58 companies had been identified to benefit from the fund.
“These companies were identified last year by the taskforce (spearheading the Let Bulawayo Survive Campaign).
“The list is based on the interviews we conducted with concerned companies on the grounds of confidentiality,” said Mangoma.
The Zimbabwe National Chamber of Commerce (ZNCC) and the Business Association of Zimbabwe (BUAZ) have both welcomed the short-listing of the companies.
ZNCC Matabeleland regional manager, Bulisani Ncube, however, said although US$40 million was not enough, it would be a starting point for many companies that were on the brink of collapse.
He said US$1 billion was needed for the total recovery of companies in Bulawayo.
BUAZ chief executive officer, Lucky Mlilo, told The Financial Gazette that the companies said to have been short-listed and the business associations themselves were still in the dark regarding the development.
Matabeleland Businesses Association chairperson, Peter Mkhwananzi, said it was still too early for businesses to start celebrating, saying it could take more than six months before benefits could be realised from the fund.
“There is actually a big difference between being short-listed and accessing that fund.
You could be short-listed for a day or even a year and accessing the money could be another thing,” he said. — Own Correspondent.