Speaking at the Confederation of Zimbabwe Industries Midlands Chamber annual general meeting, Nyambirai admitted that local banks were struggling due to less clients compared to the foreign owned banks.He told Captains of Industries that even big co-operatives headed by local people prefer to bank with foreign owned banks.
“ While Zimbabweans head most of the big co-operatives that have more money, it is unfortunate that they prefer banking with foreign owned banks rather than local banks which according to statistics give the least loans, ” Nyambirai said.
He said this disparity had contributed to local banks failing to give loans to Zimbabweans as they did not have the cash as most of their clients are those that immediately withdraw their money as deposits are made.
TN holdings founder also moaned the absence of a functioning central bank saying the Reserve Bank of Zimbabwe (RBZ) is not performing its role of “ lender of the last resort ” hence manufacturing and struggling Zimbabwean companies after failing to access loans from banks have nowhere else to turn to.
“ The RBZ in the past was the lender of last resort but now they can not help collapsing companies. While governments in other countries chip in to help big collapsing companies to be back on their feet, what has the government of Zimbabwe done to help companies that are struggling, ” asked Nyambira.
He advised that for companies to stay afloat, they need to re-strategise adding that companies had to look for alternative ways of raising capital giving an example of groups pulling their resources together. Captains of Industries complained about the lack of capital to inject into their businesses and said they were worried with the culture of banks of no longer giving interests to clients but instead ate from people’s savings.