Zim pursues Sadc bail out

HARARE - Zimbabwe's cash-strapped government is still anxiously making efforts to secure lines of credit from neighbouring countries, a government official said yesterday.

“The ministry is making frantic efforts to mobilise resources locally and externally, through pursuing pledged lines of credit under Sadc-initiated facilities,” deputy Finance minister Samuel Undenge told delegates at a Buy Zimbabwe stakeholders’ conference.

“These include, among others a $70 million Botswana line of credit, $50 million Angolan line of credit and a South African line of credit whose quantum would be subject to bilateral negotiations.”

Botswana, South Africa and Angola made the financial pledges in 2009 during the consummation of the inclusive government.

Undenge said the emergence of the Brics grouping offered potential for growth in financial and economic cooperation for Zimbabwe.

“We really need vigorous marketing of identified bankable projects and ensure that we cooperate to invest in the production of value-added products,” Undenge said.

This comes as the country is grappling with funding challenges that are affecting economic recovery following over a decade of decline.

Undenge said the country needs to establish a track record of loan repayments to China and other emerging markets in order keep these sources of funding flowing.

The regional financial assistance would help revive local industries, which have declined due to working capital constraints and ageing equipment among other challenges, Undenge said.

“As we all know, companies are confronted with capital constraints, high cost of borrowing and unavailability of long-term financing,” he said.

 

Comments (9)

How can the Zanu Pf government pursue financial pledges made in 2009 during the inclusive government? Those funds were pledged to help the inclusive governement. Now that we have a Zanu pf governement these guys should look for other sources of financing especially after they have sholen the election result.

chudza - 11 April 2014

Any sane government can not lend you guys the support you require because who doesn't know that you are a party of looters.

kt - 11 April 2014

According to the current government, nothing good came out of the inclusive government. If the inclusive failed to raise meaningful finance including accessing the pledges made then, who in their right mind will lend money to kleptocrats running Zimbabwe now?

Ndezvashe - 11 April 2014

Boy this government of ours is dumb, dumb, and even dumber, how dumb can you get ??? We are stone broke, all finances , resources and assets have been looted by the same people who are now begging for assistance. Free and fair elections, this year 2014, is what is required before any donor finance is going to flow Zimbabwe's way. When is this DIM WIT government going to realise this simple fact. If they really had Zimbabwe's best interests at heart this what must be done. 2018 is just too far away. The right people can fix the mess we are in.

ronaldos - 11 April 2014

After independence the Zimbabwe dollar was one of the best currencies in Africa. It was in the top ten. It competed with major currencies, and at one time was superior over currencies like the US Dollar and SA Rand and Pula. The economy was performing well .Its support coming from agriculture and mining. Zimbabwe was the bread basket of and exporting to the region. Companies were thriving. Despite this,The Government was busy borrowing and borrowing. In fact it developed a strong passion for borrowing. Most of the borrowed money was never fairly accounted for. Ministers became very rich. The poor become poorer and as such very restless. Where was the gain of independence they pondered. Because of greed and the addiction for good life, the government embarked on what it called ESAP, which was financed by a huge loan from IMF . A blueprint which it claimed was meant to boost the economy, make it efficient and subsequently the result would be a boom in all the sectors of industry. Unfortunately for the poor, the opposite was to be true. In Bulawayo, the 2nd capital and then the country's industrial capital, 90% of the companies closed within one year of ESAP. Things got very bad. The majority of workers were retrenched. Suddenly people were unemployed. There was desperation. The people started complaining, strikes, demonstrations, 'stay-aways', 'go slows', became the order of the day. The government reacted with lethal force to all dissent, in a vain effort to silence its people. The Government was afraid of the people. They were now frightening but it turned a deaf ear to their pleas.

mosquito - 11 April 2014

Misrule, corruption, and intolerance to difference of opinion, which had long started immediately after independence, became more manifest. The Government started politicking and stopped administrating the country. Everything was politicised. NGOs became political tools and so were food aid hand-outs. Slowly Zimbabwe was moving from bread basket to basket case of the region. The Prime Minister now President became very unpopular. Then the Gvt in a desperate political error awarded War Vets huge sums of money in what it called was compensation for their contribution in the war of liberation.The money was unbudgeted for and thus it destroyed the little that was left of the economy. Prices of foods and other basics started rising spontaneously. The workers, students, white farmers,civil society and poor masses formed the opposition.To punish the white farmers for joining into the opposition, to cover his gvt's failure,and to create an environment which politicallty favoured him and his party, the President incited land seizures from the mainly white commercial farmers. He was hitting many birds with one stone.Chaos ensured,with a lot of violence mainly from his party.The following elections saw him losing to the opposition. He did not admit defeat and illegally clung to power. The world just as it had done with Gukurahundi turned a blind eye.It said it had sanctioned him even though the sanction wasn't effective. The country became an eyesore in every aspect. People died of hunger, cholera and poverty. People fled to other countries.

mosquito - 11 April 2014

In elections to follow, the President's party would lose dismally despite all their expert rigging tricks. For once the President admitted defeat and shared power with the opposition, but despite losing he remained president an had all the powers he had before. As the days passed his party was busy plotting to completely destroy the opposition in the next elections and so they did. The President claimed victory despite glaring inconsistencies. Observers turned a blind eye. They congratulated him thus endorsing him into office. In the streets poverty was rising, companies closing and his lieutenants were busy stealing the little revenue the country was getting. 25 years earlier the country had companies like Leyland, Anglo Swiss bakeries, Rio Tinto, Ziscosteel, ZOC, R Chitrin, Aroma bakeries, WRS, Supersonic, CSC, Pepsi, Reckitt Benckiser, NRZ. In the shops there were such products like Olivine soap, Pepsi cola, Tarino soft drink, aroma bread, lifebuoy soap, nugget polish, roil cooking oil all made locally. ZOC buses would travel the streets every half hour picking up commuters. The ZRP was one of the best forces in the region and beyond, and so were the GVT hospitals. In fact the country's medical staff were highly sought after elsewhere in the world. The education system was an envy of many an African nation. Teachers were respectable people in communities. It is all gone. It was a taboo to hear of cholera in Zimbabwe. As you approached Makokoba entering the CBD in Bulawayo, you would be greeted by this fresh sweet aroma of confectioneries being baked. The same was the case as you approached the CBD in Harare along Simon Mazorodze. Now all you smell is the stench of raw sewage. The country's CBDs are stinking, with human waste a common sight. The buildings are old and dirty, with no maintenance.IT IS THE COUNTRY 34th BIRTHDAY SOMETHING WENT WRONG SOMEWHERE.

mosquito - 11 April 2014

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