The Sunday News
Chrispen Gumunyu, Business Reporter
MOST businesses, which had their property destroyed and goods looted during the ill-fated demonstrations that were organised by the opposition MDC-Alliance and some civic organisations in January have started accessing funding through Government’s Emergency Relief Loan Fund.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu said a number of retailers who applied for funding under the $30 million emergency relief facility had started receiving their allocations.
“Retailers are not accessing cash but some have already started receiving stock from the manufacturers and wholesalers whom the Government is going to direct payment to. The manufacturers and wholesalers are providing the stock to retailers and the amount varies depending on the losses from the January protests.
“We, however, don’t have the actual statistics of the businesses that have accessed funding because most of the retailers have just started filling in forms since the application process has just begun. We also need to reiterate that this is a loan facility and it is not money that is given for free but it will be paid back,” said Mr Mutashu.
The businesses that are restocking are accessing the loan at a concessionary interest rate of four percent per annum and are expected to repay within three to six months.
Those wishing to replace equipment would be paying an interest rate of three percent per annum and have 12 to 24 months to repay, while those who lost their buildings will access funding at a concessionary rate of two percent per annum and have 10 to 15 years repayment period.
Mr Mutashu, however, said concerns have been raised against some unscrupulous wholesalers and suppliers that have wantonly increased prices of their products as a gimmick to profiteer from the fund.
“We have received complaints mostly from butcheries in Bulawayo that some wholesalers have increased prices in anticipation of the facility.
“As a result they are getting the same quantity of beef at a higher price than they would get it from farmers around Matabeleland but have no choice but to get it from the suppliers that have been engaged by the Government,” he said.
Bulawayo companies were the worst affected with more than 100 shops looted and some destroyed. Contacted for comment Minister of State for Bulawayo Provincial Affairs Judith Ncube said more than 50 retail shops applied for funding.
“As of Wednesday there had been more than 50 shops that had filled loan application forms while others are still sorting out their papers since most of the documents were destroyed.
Most shop owners had difficulties in understanding the terms, conditions and requirements of the loan facility thus we took time to educate them,” said Minister Ncube.
