Tridge summary
A report by the National Competitiveness Commission (NCC) of Zimbabwe has identified high interest rates charged by local banks as a major hindrance to the competitiveness of the sugar industry. The report points out that bank interest rates in Zimbabwe range between 40 and 60 percent, while in regional countries, loans are usually long-term and interest rates are much lower. The high fuel prices in Zimbabwe in comparison to the regional average and the intermittent electricity supply, leading to the use of expensive backup energy sources, further increase the operating costs. Despite these challenges, there has been a steady increase in the land allocated for sugarcane cultivation, with private farmers contributing significantly. The sector has the potential to contribute more to the economy if the barriers are addressed, as 65 percent of the sugar produced is for the domestic market and the rest is exported.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Source: High bank charges choke sugar industry | Herald (Business) Business Reporter HIGH interest rates charged by local banks on loans inhibit the competitiveness of the sugar industry value chain players, a report by National Competitiveness Commission (NCC) says. NCC’s sugar value chain competitiveness report launched in Harare on Thursday, has since recommended measures to bolster competitiveness of the strategically key sector. Collaborative input from the Government, outgrower farmers, farmers –cum millers, service providers, and suppliers of inputs, has been cited as key to address the challenges. According to the report, bank interest rates in Zimbabwe range between 40 and 60 percent and this is exacerbated by the fact that they are short-term loans. Survey findings established that loans in regional countries were generally long-term while interest ranged between 3, 4 percent and 13, 25 percent per annum. Notably, lending rates in South Africa are the lowest at 3,24 ...
Source: Zimbabwesituation
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