By Rungano Dzikira

Confederation of Zimbabwean Industries (CZI) past president, Busisa Moyo has called for the removal of sanctions if Zimbabwean industries are to turn around their economic fortunes.

Speaking on the devastating effects that sanctions have had on the country’s business environment, Moyo said sanctions were at the epicentre of the economic demise in the country.

“For any company, under sanctions, opportunities for expansion are limited. Access to finance is limited. And then you have uncompetitiveness and the rest becomes a destructive cycle at which sanctions are at the centre of,” he lamented.

Adding on, he said the biggest effects of sanctions were felt by industries since it calls for investors to be cognisant of the country risk premium.

“The country risk premium is largely affected, and loan lending rates can reach up to 18% in US dollars whereby a large chuck of that, about 10-12% would be the risk premium,” he said.

Companies which were affected by sanctions included, Chemplex which he said was permanently impaired, ZimPhos which has since failed to retool, ZB Bank, Agribank, Almin Metal Industries, Motec Holdings, Allied Insuarance Company, Sunway city, among many others.

Having realised the devastating effects of sanctions, the business world has also thrown its weight behind the Government’s call against illegal sanctions as they aim to revive the country’s economic prospects.