Monday unveiled a US$100 million joint loan facility to try to revive the
country's economy.
The US$100 million line of credit that will benefit the private sector saw
Afrexim bank contributing US$50 million, while the government chipped in
with US$20 million to the fund, which will be channeled through banks. It is
expected that another financial institution will chip in with some cash to
push the funds to US$100 million.
Prime Minister Morgan Tsvangirai told guests at the official launch in
Harare that Afreximbank remains fully committed to supporting the country's
economic recovery 'so that it retains its position as an economic power
house of southern Africa.'
The prime Minister added that the purpose of the revival fund was to
resuscitate a broad range of firms in the productive sector, especially
those in the agriculture and manufacturing sectors. The facility was
reportedly the brainchild of the Ministry of Finance, headed by Tendai Biti
from the MDC-T.
Biti said the government has been struggling to secure credit lines, with
the country receiving just over US$500 million in aid loans last year and a
further US$200 million by June.
He said the formation of the inclusive government in 2009 saw an improvement
in inflows, with disbursed lines of credit amounting to US $656 million
being recorded in 2009. Zimbabwe stills needs over US$10 billion to revive
its economy.
But the core problem still remains. The Global Political Agreement has not
yet been implanted and there is still no real sharing of power in the unity
government. The full implementation of the GPA and genuine power sharing
would instantly see mass investment and a real hope for an improvement in
the economy.
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