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Canadian company secures $350m for Zimbabwe projects

by Innocent Ruwende
04 Apr 2016 at 05:45hrs | Views
A CANADIAN firm has secured more than $350 million to finance government-backed projects with a service contract now expected to be signed between the firm and the Embassy of Zimbabwe in Canada if the two parties reach an agreement.

Geo-Agri-Consult International Import Export Inc, wrote to its local partner Highshot Provisions, which is hosting an investment indaba in Bulawayo next month where several investors have made pledges to invest millions into the country, confirming that financial groups have pledged funds for the country.

"We are pleased to inform you that, following a request from Mr Macdonald Nyandoro (Highshot Provisions), Geo-Agri-Consult International Inc was able to secure funding in the form of a sovereign loan to finance the development of projects in the Republic of Zimbabwe," reads part of the letter written by Geo-Agric chief executive Benedict Bois.

Bois said the amount was $350 million or over and the tenure for the loan facility was 10 years.

The initiative by the Canadian firm comes after other severals lucrative deals from the Asian economic giants, China and Japan, that are expected to unlock value for the country in many sectors.

Planning and Investment Promotion Minister Obert Mpofu yesterday confirmed that there were many companies interested in investing in the country that have been making some inquiries.

"We welcome them. We've a lot of these companies interested in investing in Zimbabwe and we'll assist them in making sure the process is easier for them," he said.

Bois said a service contract would be signed between Geo-Agri-Consult International Import Export Inc and the government of Zimbabwe through the Zimbabwean Embassy in Canada.

"A conference call will be held between the leaders of the borrowing government, the Reserve Bank of Zimbabwe, representatives of financing group and Geo-Agri-Consult International Import Export Inc.

"The management of these funds will be carried out by an independent committee in Canada, which is a Public-Private Partnership. No funds will be disbursed without the approval of Geo-Agri-Consult International Inc," reads part of the letter.

Nyandoro yesterday said they were inviting investors through their networks to come and invest in the country and those attending the Investment Indaba were being asked to give expression of interest stating the areas which they wanted to venture into.

"When we have such in our hands, we then liaise with the Ministry of Planning and Investment Promotion, and if there are projects which need funding they're forwarded to the potential investor for consideration," he said.

Another French company Lucas Import Export, confirmed its interest in the construction of Waste to Energy plants and mega solar projects in Zimbabwe.

"Since these projects involve millions of euros in capital investment, we shall need a Sovereign Guarantee or bank guarantee for any projects that we shall undertake," said the company.

The company is also interested in establishing fertiliser plants and solar power farms as well as to invest into any kind of project in constructing airports, roads, tunnel, bridge, university, hospital among others.

Highshot Provisions is set to host an Investment Indaba in Bulawayo where Former Real Madrid and Chelsea Football Club manager, Jose Mourinho and American businesswoman and former Facebook spokesperson Randi Zuckerberg, are set to attend.

Binder contracts have already been signed by the organisers of the conference, Highshot Provisions and Zuckerberg, a multi-millionaire and sister to Facebook founder and chief executive Mark Zuckerberg as well as with Mourinho.

Senior government officials and Ministers who will attend the indaba will meet the group's investors.

Source - chronicle
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