Zimbabwe leather and footwear industries hope for UAE investment
The Leather and Allied Industries Federation of Zimbabwe (LAIFEZ) is hoping for investment in the sector by Ras al-Khaimah, one of the seven Emirates of the United Arab Emirates.
A trade delegation led by the Emir, Sheikh Saud Bin Saqr al Qasimi, visited Zimbabwe recently, and LAIFEZ was invited to participate under the Industry and Value Addition portfolio.
“Our Federation includes several other sub-sectors apart from leather and we intend to negotiate on their behalf as well,” secretary Bev Jack wrote in a circular to members.
“The total requirement by all our sub-sectors is estimated at US$20 million. The requirements would be $14 million long term loans with tenure of over 6 years at interest rates of below 6% for capital expenditure, and $6 million medium term loans, overdraft facilities or order finance for orders at similar rates. Requirements will vary from company to company.
“LAIFEZ was strongly supported by the Confederation of Zimbabwe Industries (CZI) and our own Ministry of Industry and Commerce. As far as we know, the final details have not yet been worked out and we cannot even guarantee that our sector will be considered by the Ras Al Khaimah team, but the devil is in the details.”
He said the programme would be administered by the President’s Office under the chairmanship of vice president Joyce Mujuru.
He said if the sector’s involvement in the programme was approved, the opportunities were:
1. Strict implementation of regulations for the export of rawhides.
2. Investment possibilities.
3. Equity participation.
4. Outright purchase of existing companies where requested by current owners.
5. Joint ventures (they are aware of the Indigenisation requirements).
6. Any other requests from members.
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