Zimbabwe to engage IFC for financial support

Finance and Economic Development Minister Patrick Chinamasa says he will engage the International Finance Corporation, a unit of the International Monetary Fund, to extend financial support to local industry.

Minister Chinamasa said he did not understand why the International Monetary Fund's private arm was not willing to fund Zimbabwe's private companies.

According to the Confederation of Zimbabwe Industries, the manufacturing industry requires about $8 billion to recapitalise and increase production.

He said he had engaged IFC over the issue, but would not get a satisfactory answer other than the explanation that this was a punitive measure.

Minister Chinamasa said Zimbabwe cannot get financial benefits as a member of the IMF because of the fund's position that it will not give Zimbabwe credit as it had not paid previous debts, but IFC had no reason not to support industry.

Fanezzi said IFC was a separate arm of the IMF and he had no authority to comment on their behalf as to why they did not support local industry.