By Stanley James, Business Editor
ZIMBABWE’S industry and commerce recapitalisation strategies have received huge support from the Reserve Bank of Zimbabwe’s auction system, which has allotted more than US$3,5 billion to productive sectors.
Just four years ago, funding for local industry to recapitalise was a challenge.
However, government through the central bank intervened by unveiling the foreign exchange auction system that has been allotting funds to industry and commerce for recapitalising.
A huge chunk of forex from the auction system has been used for importing raw materials, machinery and equipment as well as services and consumables.
The auction system has also been a huge boost to retail and distribution sector requirements, pharmaceutical imports, paper and packaging, including payments for fuel, gas and electricity.
In a statement released this Friday, the central bank revealed that more than US$3.5 billion has been allotted to productive sectors of the economy since June 2020.
Despite delays in payments to the approved firms, the Central Bank has, however, revealed commitment to continue fulfilling its obligations for the auction system.
The update shows that firms in the fields of mining, agriculture, manufacturing, retail and services, including small to sedium enterprises, are dominating allotments.
According to the latest update from the central bank, more than 7 000 companies have managed to access funds from the auction system.