News / Local
Zimbabwe needs US$12 billion for infrastructure rehab
04 Oct 2023 at 01:18hrs | Views
The Ministry of Energy and Power Development has presented a staggering $12 billion proposal to comprehensively upgrade the country's infrastructure to meet international standards.
The majority of Zimbabwe's infrastructure is outdated, dating back to the period before the country gained independence in 1980. Even the powerlines from Kariba Power Station are over 60 years old. Zimbabwe's ability to secure fresh capital from international lenders has been hampered by its mounting public debt, which currently stands at $20 billion.
Speaking during the ongoing four-day Zimbabwe Economic Development Conference (Zedcon), Energy and Power Development permanent secretary Gloria Magombo revealed the need for substantial investment in the sector. She noted the challenges in accessing global green funds and highlighted that despite the estimated $100 billion available annually for such projects, the funds aren't flowing to African nations.
Magombo emphasized the importance of reevaluating global infrastructure financing and the difficulties faced by African nations, particularly Zimbabwe, in securing financing due to various challenges, including gate clearance and other logistical issues.
In light of these challenges, Magombo stressed that the sector requires an additional $8 to $12 billion in infrastructure development to support the country's ongoing economic growth.
She also called upon the private sector to contribute to long-term infrastructure development projects, emphasizing that infrastructure investments are long-term endeavors that demand long-term financing solutions.
The majority of Zimbabwe's infrastructure is outdated, dating back to the period before the country gained independence in 1980. Even the powerlines from Kariba Power Station are over 60 years old. Zimbabwe's ability to secure fresh capital from international lenders has been hampered by its mounting public debt, which currently stands at $20 billion.
Speaking during the ongoing four-day Zimbabwe Economic Development Conference (Zedcon), Energy and Power Development permanent secretary Gloria Magombo revealed the need for substantial investment in the sector. She noted the challenges in accessing global green funds and highlighted that despite the estimated $100 billion available annually for such projects, the funds aren't flowing to African nations.
Magombo emphasized the importance of reevaluating global infrastructure financing and the difficulties faced by African nations, particularly Zimbabwe, in securing financing due to various challenges, including gate clearance and other logistical issues.
In light of these challenges, Magombo stressed that the sector requires an additional $8 to $12 billion in infrastructure development to support the country's ongoing economic growth.
She also called upon the private sector to contribute to long-term infrastructure development projects, emphasizing that infrastructure investments are long-term endeavors that demand long-term financing solutions.
Source - newsday
