According to a press statement released by CABS on Wednesday, all applications will be processed by the bank, which has also set minimum requirements for eligibility by companies to qualify as beneficiaries.
“CABS is pleased to announce that Old Mutual Zimbabwe, in partnership with the government of Zimbabwe, has established the Distressed and Marginalised Areas Fund (Dimaf).
The unveiling of the Dimaf is aimed at addressing the capital constraints currently faced by our local businesses, the bank said in a press statement.
“The fund will allow companies to purchase equipment and raw materials in enhancing output, quality of goods being produced and to assist them in meeting their operating costs. All applications will be processed through CABS.”
The bank added that minimum requirements for companies to qualify to access the funds include, “minimum of two years accounts (management accounts or financial accounts) audited if possible, acceptable collateral, projections for Capex (capital expenditure) loans covering the tenor of loan (12 months), budgets and cash flows and turnaround strategies, including a business plan”.
As part of the requirements, companies have to provide acceptable collateral or be professionals registered with a recognised professional association who should have been in practice for at least five years.
The U$40 million fund for the resuscitation of Bulawayo industries was presented by Finance minister Tendai Biti last month.
Biti told Bulawayo businesspeople during the launch of the fund that it is a five-year collaborative facility between the government and Old Mutual Zimbabwe.
Old Mutual and government contributed US$20 million each to the fund.
The beneficiaries of the fund, Biti said, would be made public in the 2012 national budget statement in December.
More than 90 companies have closed shop in Bulawayo and over 20 000 workers lost jobs in the past year, a development that has put the coalition government under pressure to save the country’s second-biggest city.