The southern African country, ravaged by a decade of economic decline
blamed on President Robert Mugabe’s policies, urgently needs $1 billion
in credit lines to revive industries and the same amount for direct
budget support, mostly to pay workers.
A total of $8.3 billion is needed to restore the country’s economy.
"We’ve made major strides in obtaining lines of credit for the private
sector … so our $1 billion target has already been surpassed,"
Mangoma said during the public launch of a government 100-day economic
plan.
Mangoma said Zimbabwe had so far secured $1 billion from African
financial institutions such as the African Development Bank, the
Cairo-based African Export-Import Bank and $150 million from
neighbouring South Africa and Botswana.
The loans will be used to revive Zimbabwe’s industries, which are
operating at around 10 percent capacity due to foreign currency
shortages, a hostile operating environment and government price
controls.
Mangoma, however, said efforts to raise $1 billion in direct aid from
donors which the government desperately needs to fund its operations,
had largely been unsuccessful, with only $35 million secured from South
Africa and China.
INTERNATIONAL DONORS
International donors are yet to release any funding to the unity
government, formed between Mugabe and Prime Minister Tsvangirai,
insisting the new administration carry out political and economic
reforms and open up the media.
Despite the government’s urgent need to raise funds, Mangoma said there
would be no sell-off of underperforming state enterprises.
"Our focus is not going to be on wholesale privatisation of
parastatals. They will be reformed to increase efficiency. Prices are
low at the moment, so bringing public assets for sale now will not
bring much benefit," Mangoma said.
Speaking at the launch of the economic plan, Tsvangirai said its
success was at risk from some elements in the unity government opposed
to reforms.
"Sadly, there appears to be reluctance by residual elements from the
old government to obstruct and frustrate the successful implementation
of the global political agreement," Tsvangirai said.
"This residual resistance represents an unwillingness to accept the
fact that the new political dispensation is not only irreversible, but
also offers the country the only way forward."
Tsvangirai, however, said progress had been made in finalising
outstanding issues, such as appointments of ambassadors, the central
bank governor, the attorney-general and other senior government
officials. He said an announcement would be made soon.
Justice Minister Patrick Chinamasa, a Mugabe ally, repeated the new
government’s commitment to implement political reforms and to end
Zimbabwe’s international isolation by engaging Western governments that
imposed sanctions on Mugabe’s ZANU(PF) government, all within the
100-day period.
"We want to see the review of media policy and laws to create a plural
media sector, to kick-start the constitutional reform process and the
re-engagement of the international community," Chinamasa said.
Reuters
Post published in: News