via Bimha urges accountants to advise govt – NewsDay Zimbabwe August 10, 2015 by Tarisai Mandizha in Gand Hyatt, Dubai
INDUSTRY and Commerce minister Mike Bimha has challenged the Institute of Chartered Accountants of Zimbabwe (ICAZ) to advise government on how it could fund the industrial sector.
Bimha told delegates at the ICAZ Winter School in Dubai last week that the country had huge investment opportunities but these were being hampered by lack of funding.
“The good thing is there are some good things going on out there and we should continue to send the positive messages,” Bimha said.
“ICAZ should arrange to fund the industry. We need funding and we don’t have the funding locally, but I am sure there are some arrangements that you can make. We want your members to join government.”
Zimbabwe’s industrial sector is currently facing a lot of challenges which include high cost of production, shortage of electricity and limited lines of credit to replace obsolete equipment to become effective.
According to latest statistics, the manufacturing sector has recorded a 1,9% increase in capacity utilisation to 39% driven by activities in the beverages and construction sectors.
In the same period in 2014, capacity utilisation was 37,1%. Capacity utilisation for the manufacturing sector took off in 2009 at around 10% and rose to 57,2% in 2011. Since then it has been on a downward trend.
Speaking at the same event, Zimbabwe Investment Authority (ZIA) chairperson Nigel Chanakira said ICAZ members who were working in various countries had the capacity to lure investors to Zimbabwe.
“We from the ZIA are calling to you that we are ready to get investment from you. We have gone a long way to reduce the cost of investing in Zimbabwe. Quite clearly, we see that $28 billion is well within our target to tune in investment, but we can’t do it alone,” Chanakira said.
Reserve Bank of Zimbabwe deputy governor Kupukile Mlambo said Zimbabwe was much open to foreign investment as demonstrated by the commitment to re-engage with the international creditor community as well as efforts to make investment policies more flexible.
“The authorities remain committed to taking all possible steps to ensure that the country achieves sustainable economic growth and becomes part of the Africa’s rising story. The government of Zimbabwe is ready to consider foreign investment in all sectors of the economy,” Mlambo said.