Retooling package to increase metal casting industry production

THE metal casting industry is expected to maximise its production from the value chain retooling package allocated to all productive sectors by the Treasury using resources under the International Monetary Fund (IMF) Special Drawing Rights (SDRs).

Zimbabwe was allocated SDR677 million (US$958 million equivalent) by the International Monetary Fund (IMF), which is part of the SDR’s General allocation of US$650 billion that was released in 2021.

International Monetary Fund (IMF)

It is from these resources that the Treasury channelled part of the funds towards supporting key economic sectors such as horticulture, industry retooling, tourism, and smallholder farming irrigation systems.

A total of US$80 million has been set aside for productive sector funding and the Government has invited local businesses to start accessing the money to boost the country’s economy.

According to a recent Treasury statement, those eager to access the revolving facility should submit an application letter through selected participating banks for assessment.

The banks will then forward the letter accompanying the support for the project to the Treasury through the respective ministry.

The breakdown of SDR disbursements towards the productive sector includes; a US$30 million horticulture revolving fund, a US$22,5 million industry retooling for value chain revolving fund, US$7,5 million tourism facilities services development/ upgrading revolving fund, and the smallholder farmers irrigation infrastructure development fund to the tune of US$20 million.

Commenting on these facilities, Zimbabwe Institute of Foundries chief operating officer, Mr Dosman Mangisi said the revolving fund package would positively impact the sector as it contributes to all other key sectors including farming and mining.

“Retooling is the way to go in terms of developing value chains. The allocation of the revolving funds by the Government shows that it is keen on retooling and developing the industries,” he said.

“The foundry is the key sector which needs to be given first priority because all the sectors need metal products including machinery.

“This positions metal casting as the key priority sector to be retooled to address mining, farming, food processing, and clothing issues through providing them with local products.”

However, Mr Mangisi is of the view that the Government still needs to inject more funding towards retooling of industries.

For instance, he said the metal casting industry alone needs over US$100 million for retooling for players to operate in full capacity.

He also urged the Government to ensure the cost of the funding is affordable to businesses and consider facilitating the speedy release of the resources to the qualifying applicants.-chronicle.cl.zw