Zimbabwe productive sector lending up 83 percent

LOANS to productive sectors of the economy have risen by more than 80 percent to over $20 billion during the first half of this year.

The latest central bank data indicates that the agriculture sector dominated total loans, followed by financial services, manufacturing, mining, distribution, commercial, mortgage, among others.

Consumption lending which is salary-based loans constituted 13 percent of the total loans amounting to $37 billion.

Employers Confederation of Zimbabwe president, Dr. Israel Murefu spoke on the importance of a productive sector-led model in Zimbabwe.

“We all need to sustain the industries, but it is how we do it that maters to the extent that those in control should mobilise more resources,” said Dr Murefu.

Tobacco Association of Zimbabwe president Mr George Seremwe said productive sectors require long term loans at affordable rates.

“It is all about how the loans can be used to unlock value in key sectors that matter,” said Seremwe.

An industrialist Mr Archie Dongo said the loans are also benefitting the economy by cushioning firms from the challenging environment, resuscitating ailing operations and stabilizing output in line with vision 2030.

“The loans are needed so that they can have a positive impact on how we can achieve the set targets of the vision 2030,” said Dongo.

Financial support to productive sectors of the economy is also aimed at enabling them to invest, create jobs and increase exports. – ZBC

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