Zisco, NRZ ‘dead’ but Zimbabwe still paying loans for collapsed national projects, RBZ John Mangudya

Over 300km of overhead copper wires were stolen along Dabuka-Harare rail line

Reserve bank chief, John Mangudya, has expressed grave concern over the fact that the country is still paying loans for state enterprises and national projects that have since collapsed.

Mangudya said this when he visited Harare Institution of Technology (HIT) incubation unit house at Feruka Refinery in the eastern border city recently. The unit specializes in producing gases such as oxygen, nitrogen, acetylene and LP gas.

Higher and Tertiary minister Jonathan Moyo was also part of the tour.

“We really appreciate this project because it acts as import substitution for the country. This Feruka Refinery was constructed as a strategy for import substitution,” said Mangudya.

State enterprises such as the Ziscosteel and the National Railways of Zimbabwe (NRZ) which were established strategically as import substitution entities in the then Rhodesia.

Redcliff-based Ziscosteel has effectively collapsed while some projects as the NRZ are now defunct but government is still repaying loans secured by the companies from foreign lenders.

“The reason why these institutions have gone while some are now dust is that as Zimbabweans we are failing to care and maintain our investments,” said the RBZ chief.

“I always give an example of National Railway of Zimbabwe. We borrowed money from Germany for electrification of Harare-Dabuka (Gweru) railway line.

“As we speak there no asset to talk of but we are still repaying the loan. We need introspection as Zimbabweans on the way we care and maintain our investments.

“As Zimbabweans, we have invested much in talking rather than doing.”

Mangudya also lamented the fact that Zimbabwe was spending foreign currency “on little things that could be manufactured locally”.

“It’s not about money but knowing what you are doing. It`s a matter of just producing to ensure that the economy at least produce something for export and domestic consumption.

“We go to India to buy small items, to buy diamond polishing machines but if you look into that machine there is nothing on it,” said the RBZ governor.

Please follow and like us:
Source: New Zimbabwe

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Widgetized Section

Go to Admin » appearance » Widgets » and move a widget into Advertise Widget Zone