we are on our own: BitiBiti made the remarks in Harare last Thursday as he disbursed the US$100 million from the International Monetary Fund (IMF)s special drawing rights (SDR) allocations to member countries to help cushion them from the effects of the world financial crisis.
We are not going to get outside help from anyone. Last year we got $30 million from South Africa and $5 million from China, the credit lines are not going to be extended to Zimbabwe again. We are going to be alone, said Biti, whose comments are certain to infuriate civil servants who have been clamouring for more pay.
No outside country is going to come and help us, let it be not be illusion to anyone, he said, stressing that the government had no money.
Civil servants who downed tools a month ago to press the cash-strapped unity government of President Robert Mugabe and Prime Minister Morgan Tsvangirai to hike salaries from $155 to $630 per month called off the industrial action last Tuesday saying they wanted to give dialogue a chance.
The government that is struggling to revive an economy battered by years of hyperinflation and lure back investors has only managed to raise the salaries to an average $236 a month.
There is still a huge gap between our imports and exports, Biti said, adding; We do not print money. Our economy is not ready for high wages.
The cash that Biti distributed last week was part of the $410 million that Zimbabwe got from the IMF last year.
Biti who is secretary general of Tsvangirais MDC-T party said they had appointed the Infrastructure Development Bank to facilitate disbursement of the IMF funds on behalf of the government.
Based on our experience with other projects from last year, the resources will not be disbursed to beneficiary institutions, rather, payments will be made directly to suppliers of goods and services, said Biti.
He said the projects to benefit from the funds were selected on their ability to re-invigorate the economy.
The rehabilitation of the Hwange Thermal Power Station has been granted a $10 million boost while the roads dualisation and bridge construction got $10.285 million.
Biti availed US$18.1 million for the rehabilitation of the Harare International Airport taxiways and the construction of the Joshua Nkomo International airport.
Water and sanitation projects for Bulawayo, Marondera and Mutoko have been granted $6.4 million, $2.9 and $130 000 respectively.
The government has also set aside $7 million for the Mtshabezi water augmentation project. It also set aside $6.2 million for information communication technology (ICT) infrastructure and another $ 800 000 for the development of Broadcasting Transmission Network.
The Finance minister also availed a $10 million for housing projects across the country while setting aside a $3.5 million for the completion of the Central Registry office complex which has been under construction since the late 1990s.
Zimbabwe, once one of Africas most vibrant economies, is said to owe $140 million to the IMF, $676 million to the World Bank and $438 million the ADB, among other lenders.
However, the power-sharing government says it needs more loans $10 billion in total to revive the economy and generate revenue before it is able to repay what it owes.
Post published in: News