News / National
Zimbabwe lacks capacity to issue sovereign bonds
26 Apr 2018 at 08:30hrs | Views
Zimbabwe lacks capacity to issue sovereign bonds for its Sovereign Wealth Fund at the moment, a regional think-tank has warned, following a government announcement on launch of the fund shortly impending polls this July.
Thwarting deputy Finance minister Terrence Mukupe's claim that the country was considering issuing between $2,5 billion to $3, 5 billion in sovereign bonds after election, NKC Africa Economics analyst, Jee-A van der Linde, dismissed the announcement as a pie in the sky.
The indebted nation, which saw its economy halve between 2000 and 2013, is struggling to access cash to revive ailing industries and rebuild aging infrastructure.
"Post-election, we should be able to put in place a sovereign wealth fund or an export-related bond and we think we should be able to raise between $2.5 billion and $3.5 billion anchored on trade receivables," Mukupe told the Zimbabwe Broadcasting Corp.
The bonds would be repaid in annual installments of $140 million to$150 million, Mukupe said. Calls to his mobile phone for additional comment weren't answered.
Thwarting deputy Finance minister Terrence Mukupe's claim that the country was considering issuing between $2,5 billion to $3, 5 billion in sovereign bonds after election, NKC Africa Economics analyst, Jee-A van der Linde, dismissed the announcement as a pie in the sky.
"Post-election, we should be able to put in place a sovereign wealth fund or an export-related bond and we think we should be able to raise between $2.5 billion and $3.5 billion anchored on trade receivables," Mukupe told the Zimbabwe Broadcasting Corp.
The bonds would be repaid in annual installments of $140 million to$150 million, Mukupe said. Calls to his mobile phone for additional comment weren't answered.
Source - Daily News
