Chinese insurer coming to Zimbabwe

Officials from the Chinese export credit insurance agency, China Export and Credit Insurance Corporation (Sinosure) are expected in the country next week to finalise negotiations for lending to the local private sector.

The impending arrival follows negotiations opened by President Robert Mugabe on his recent visit to China where government sealed several mega projects in several key sectors of the economy.

Local industry is battling a myriad of challenges among low capacity utilisation, lack cheap finance and limited lines of credit. When secured, debt finance is either high priced or short term, frustrating efforts towards industrial recovery.

On Wednesday, Finance and Economic Development minister Patrick Chinamasa said the visit by Sinosure was part of ongoing discussions with the Chinese financial institutions that began in January this year, to fund the private sector.

"Sinosure will be here next week to finalise a few issues with the view to pave way for a number of Chinese financial institutions to fund the private sector in the country."

Chinamasa said government had scaled up efforts to re-engage the world to attract foreign direct investment and fresh capital into a cash starved economy.

Sinosure is China's official export credit insurance agency, offering export credit and credit insurance.

Sinosure can insure both China's overseas investments and overseas investments into China, and can guarantee both shares and loans.

Sinosure's services include short-term export credit insurance, medium-and long-term export credit insurance, investment insurance, bond and guarantee business, debt and capital retrieval business and credit assessment business.

Mugabe launched the Look East Policy at the turn of the millennium after Zimbabwe's relations with the west soured over the redistribution of land programme which wrestled land from a few white farmers into the hands of the majority black farmers.

The Chinese have remained all whether friend to Zimbabwe, assisting Harare during times of need. To date, China alone has injected millions of dollars to the economy.

Despite defaulting on several loans, China has remained eager to lend to Zimbabwe.