Zim seeks $600m facility for industry

HARARE- The Ministry of Industry and Commerce is negotiating a US$600 million facility with Botswana, for the local manufacturing sector, whose capacity utilisation remains below 50 percent owing to a range of factors including the US- imposed economic embargoes and antiquated production equipment.

The manufacturing sector was also being weighed down by the strong US dollar, which was being used as a transaction currency, making locally produced goods uncompetitive on the exports markets.

Market watchers and some industrialists say using the US dollar as a transaction currency, is not ideal for an economy seeking to boost production, and critically, exports.

Industry and Commerce Minister Mangaliso Ndlovu, told our sister paper Business Weekly this week that Government is engaging Botswana, whose top officials include President Mokgweetsi Masisi, with a view to getting a facility for the manufacturing sector. President Masisi arrived in the country on Wednesday while his minister arrived a day earlier for the inaugural Zimbabwe-Botswana Bi- National Commission (BNC).

Several agreements were inked between President Emmerson Mnangagwa and President Masisi yesterday, which are expected to define a new era of cooperation between the two neighbouring countries.

However, no agreements were signed pertaining to the manufacturing sector as the negotiations are still underway, said Minister Ndlovu.

“We are still negotiating an economic cooperation with Botswana,” said Minister Ndlovu. “It has not reached a stage where we, as the Ministry of Industry, can sign the MoU (Memorandum of Understanding). But we are working on it; there is good progress. We will also discuss it as well (during the BNC meetings). “We are not included in the signing (that took place yesterday) but we (were) part of the ministers’ meetings and it’s an exciting mission really because the agreements that are on board include one of financing so, we expect also to unlock some funding for our local industrial retooling programme. It’s in the range of US$600 million.” - CHRONICLE