Local Automotive Components / Parts Development Fund:
A major factor that has militated against the development of the sub-sector has been inadequate capitalization and funding. Apart from working capital requirements, a lot of forex is needed because currently more than 70% of the sector’s material inputs are imported. The current high interest rate charged by commercial banks makes long-term loans unattractive.
Applications of over #10.00 billion has been received from 63 companies since inception in 2004. They have been assesses and passed to the Bank of Industry for further financial assessments before final loan approval and disbursement. # 9.98 billion has been disbursed to 27 companies. Loan application of # 2.2 billion by 12 companies is under consideration.