Finance Minister Tendai Biti recently said more than US$20 billion was needed for infrastructure projects such as road and rail networks and to fully kick start the re-emerging mining industry.“The thirst for capital in our country is huge and high,” Biti said
This comes after revelations by the Chamber of Mines that 40 percent of mineral reserves remain unextracted due to limited funds.
Zimbabwe Mining Development Corporation (ZMDC) Chairman, Godwills Masimirembwa says government and the private sector should direct resources into exploration activities.
“What is needed is an urgent establishment of an exploration company to increase production,” said Masimirembwa. The mining sector alongside agriculture is expected to play an important role in economic revival.
“On infrastructure alone, the country requires US$14,5 billion. The mining sector requires US$5 billion to US$7 billion to be fully operational. Our country needs capital in the form of foreign direct investment, lines of credit and cheap access to finance,” Biti said.
Biti said the credit line is part of funds pledged by Zimbabwe’s regional neighbours to help recovery projects after President Robert Mugabe and Prime Minister Morgan Tsvangirai formed a unity government in 2009 after polls chaos.
Post published in: Business