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 countrys 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.
Post published in: Economy