Harare, Zimbabwe – The Executive Vice President of Finance, Administration, and Banking at the Africa Export-Import Bank (Afreximbank), Denys Denya has voiced serious concerns about the lack of preparedness among Zimbabwean companies seeking financial assistance from the bank.
Speaking on the sidelines of the SADC Industrialisation Week and Investment Conference in Harare, Denya stressed that while the bank is interested in several key sectors of Zimbabwe’s economy, there is a significant shortfall in project development and execution among local firms.
“People want to do a lot of things, but they have not thought through the production process, market access, and the technology needed to undertake the project,” Denya remarked.
Afreximbank has allocated US$400 million to support Zimbabwean businesses aiming to expand their operations across Africa. However, the influx of funding inquiries has been met with disappointment due to the subpar quality of the proposals received.
“We have had approaches where people said they want to do certain projects, yet they lacked factual information as to why they want to do it, where it is going to be situated, and what is needed,” Denya explained. This lack of detail underscores a broader issue of project preparation and execution in the country.
To address this, Afreximbank plans to use its project preparatory facility to help potential beneficiaries develop viable proposals. “There is a gap, not only in project preparation but even in project execution,” Denya emphasized. Despite these challenges, the bank remains committed to supporting Zimbabwe’s economic growth.
Afreximbank is particularly interested in key infrastructure projects, such as the rehabilitation of the National Railways of Zimbabwe (NRZ). “We are able to get people to come in with technical diagnostics so that we actually know the state of the rail tracks, the load they can carry, and the parts that need to be replaced. A lot of investigation needs to happen before projects can really take off,” Denya noted.
The urgency of these investigations is heightened by the need to rehabilitate rail infrastructure and import wagons to facilitate the evacuation of minerals and steel. The bank is also exploring opportunities in the power sector, in line with the Government’s plans to expand the Hwange Power Station. While discussions with the Zimbabwe Electricity Supply Authority (ZESA) are ongoing, Denya highlighted the bank’s prior experience in the sector, particularly with the rollout of smart meters.
“We have been helping ZESA with smart meters and the programme is still ongoing,” he said.
Large corporations like ZIMASCO have successfully accessed Afreximbank funding for projects such as power expansion. However, Denya underscored the importance of supporting small and medium-sized enterprises (SMEs). “It is easy for big companies, but big companies do not create jobs. We want SMEs to be creating jobs; hence, there is still some work to be done,” he said.
This focus on SMEs aligns with the Government’s efforts to promote rural development and job creation. However, the lack of well-prepared projects among SMEs remains a significant obstacle.
Afreximbank’s involvement in Zimbabwe’s economy is anticipated to positively impact the infrastructure and industrial sectors. However, the success of these initiatives hinges on the ability of local businesses to develop credible and bankable projects.
Source: Business Weekly