Business / Economy
Govt signs $64 million deal with Botswana
03 Sep 2012 at 11:37hrs | Views
Government has signed an agreement with Botswana for the availing of a $64 million credit facility aimed at recapitalising the local manufacturing sector.
The credit facility which was signed in 2010 has now come into fruition following the ratification of the Bilateral Investment Promotion and Protection Agreement (BIPPA) between the two countries.
Addressing industrialists and the local business community in the capital at the singing of the Memorandum of Agreement, Finance Minister Tendai Biti said government has ironed out the bureaucracy associated with credit facilities to ensure that there is quick disbursement of the $64 million fund to critical sectors of the economy.
"We have put in place measures to ensure that there is quick disbursement of the fund not the bureaucratic nature of some of the facilities such as DIMAF AND ZETREF which are lying idle in banks saving no purpose," the minister said.
Botswana Minister of Finance and Development Planning, Kenneth Matambo said 70% of the amount will be channelled towards the manufacturing sector while the remaining 30% will cater for other sectors of the economy.
"We are today operationalising the BIPPA through the availing of the 500 million pula credit facility of which 70% will be accessed by the manufacturing sector while 30% will cater for other sectors. The payback period is five years and it can be accessed considering how the funds have been utilised," said Matambo.
Minister of Economic Planning and Investment Promotion, Tapiwa Mashakada said the facility will increase joint-venture partnerships among firms from both countries.
"We have ratified and signed the BIPPA and this money will be critical towards forging strategic alliances by firms from both countries," he said.
Zimbabwe's manufacturing sector has been facing a number of challenges ranging from erratic power supply to unavailability of finance.
According to figures from fiscal authorities, the local manufacturing sector requires $4 billion to realise its full potential.
The credit facility which was signed in 2010 has now come into fruition following the ratification of the Bilateral Investment Promotion and Protection Agreement (BIPPA) between the two countries.
Addressing industrialists and the local business community in the capital at the singing of the Memorandum of Agreement, Finance Minister Tendai Biti said government has ironed out the bureaucracy associated with credit facilities to ensure that there is quick disbursement of the $64 million fund to critical sectors of the economy.
"We have put in place measures to ensure that there is quick disbursement of the fund not the bureaucratic nature of some of the facilities such as DIMAF AND ZETREF which are lying idle in banks saving no purpose," the minister said.
Botswana Minister of Finance and Development Planning, Kenneth Matambo said 70% of the amount will be channelled towards the manufacturing sector while the remaining 30% will cater for other sectors of the economy.
Minister of Economic Planning and Investment Promotion, Tapiwa Mashakada said the facility will increase joint-venture partnerships among firms from both countries.
"We have ratified and signed the BIPPA and this money will be critical towards forging strategic alliances by firms from both countries," he said.
Zimbabwe's manufacturing sector has been facing a number of challenges ranging from erratic power supply to unavailability of finance.
According to figures from fiscal authorities, the local manufacturing sector requires $4 billion to realise its full potential.
Source - Zbc
