Business / Economy
R2 billion loan for Zimbabwe being considered
17 Feb 2011 at 10:12hrs | Views
South Africa is considering a R2 billion (US$274 million) loan for Zimbabwe to help the country revive its economy, a top business leader has said. Joseph Kanyekanye, president of the Confederation of Zimbabwe Industries (CZI), the country's biggest business group, said the loan would be specifically for Zimbabwean industry to finance re-tooling and other capital projects.
The country's industry, battered by ten years of economic and political upheaval, is badly short of capital for investment in the face of Western sanctions.
Zimbabwe has been slapped with sanctions, including a withdrawal of balance of payment support, by the West over alleged human rights abuses.
'There is a pledge to the tune of R2 billion from South Africa and that money is set to go a long way in making sure that our industries prosper,' Kanyekanye said.
'We understand that a lot of industries have been largely affected by liquidity and viability problems but we continue to work hard so that we get assistance from regional friends,' he added.
The government has been negotiating the loan deal with South Africa for a long time, and Kanyekanye's comments are the clearest sign agreement is close.
The country's industry, battered by ten years of economic and political upheaval, is badly short of capital for investment in the face of Western sanctions.
Zimbabwe has been slapped with sanctions, including a withdrawal of balance of payment support, by the West over alleged human rights abuses.
'There is a pledge to the tune of R2 billion from South Africa and that money is set to go a long way in making sure that our industries prosper,' Kanyekanye said.
'We understand that a lot of industries have been largely affected by liquidity and viability problems but we continue to work hard so that we get assistance from regional friends,' he added.
The government has been negotiating the loan deal with South Africa for a long time, and Kanyekanye's comments are the clearest sign agreement is close.
Source - Byo24News
