Old Mutual to fund solar, export growth
OLD MUTUAL Zimbabwe, the country’s largest financial services group, says it is keen to extend loan facilities for renewable energy development and export oriented initiatives.
This comes after the company invested circa US$12.3 million (over R188 million) into solar projects around the country, which is expected to generate a combined 25 megawatts upon completion.
In a trading update for the period to July 2021 the group, which also has interests in properties, cited mining and tourism as some of the key sectors to be covered by the loan facility.
Agriculture and the horticulture sectors will also benefit from the loan facility, as the company moves to stimulate productivity in economic areas that promote import substitution.
“The initiatives supported through loan facilities and other Investment activities include renewable energy development, foreign currency generating, and import substitution agricultural activities, mining, horticulture, and tourism,” Old Mutual said.
The group will also support Fast-Moving Consumer Goods (FMCG) industry value chains, which it says have shown suppleness in times of distress, particularly under high inflation.
“Across the business units, there was increased thrust to increase our participation in value chains that have demonstrated the ability to be resilient under high inflation conditions. This includes the export sector and certain sub-sectors of FMCG and the service industry,” said Old Mutual.
The funding falls in line with Finance and Economic Development Minister Professor Mthuli Ncube’s sentiments that Zimbabwe’s gold mining sector possesses huge potential.
Zimbabwe small scale and artisanal miners account for roughly 60 percent of annual gold production, hence need to support their ventures, which is hampered by lack of sophisticated equipment and funding constraints.
Critically, the initiative comes at a time when the tourism industry is slowly recovering from the impact of the Covid-19 pandemic having been closed for five months between April and August last year.
The Government, like every administration globally, has enforced regulations which were aimed at curbing the spread of the virus, adversely affecting its performance in the process.
The financial services group highlighted that the good 2020/21 farming season, reasonably stable inflation, and improved exchange rate seen from the second half of 2020 are expected to anchor 2021 economic recovery prospects.
The group however noted that Covid-19 induced lock downs continue to be a significant threat to the business and economic performance in general hence a restrained view on the outlook.-herald.cl.zw
