News / National
Zimbabwe seeks R2bn from South Africa
28 Feb 2011 at 09:28hrs | Views
The Zimbabwean Government is actively engaging South Africa on an earlier pledge by the latter to provide up to R2 billion in lines of credit to boost the country's economic recovery.
Economic Planning and Investment Promotion Minister Tapiwa Mashakada said the Government was looking to secure the funds soon.
He said the Ministry of Industry and Commerce was in discusions with the South African Department of Trade over the facility.
'At the moment, Minister Ncube has engaged the Department of Trade with regards to the R2 billion pledge so that the recovery process is speeded up,' he said
'South Africa promised US$2 billionn and we are going to pursue that.
'We will focus on South Africa's credit line now that we have disposed Botswana.
'Zimbabwe requires US$10 billion to help revitalise the economy, but we are only generating US$2 billion,' said Minister Mashakada.
Zimbabwe and SA Africa had earlier agreed on a 2,65 billion rand loan facility, which was suspended in 2008 at the height of Zimbabwe's economic challenges.
However, efforts to renewit are now expected to bear fruit, coming as they do on the heels on an anticipated US$70 million (500 million pula) from Botswana.
Zimbabwe Cabinet has approved the signing of the Zimbabwe-Botswana Bilateral Investment Promotion and Protection Agreement set for conculsion within a fortnight.
The funds are largely expected to finance Zimbabwe's manufacturing and mining industries.
In 2009, Botswana pledged US$70 million to boost Zimbabwe's economy and support key industries that had either shut down or were operating far below capacity.
Zimbabwe's manufacturing industries have been operating at around 45 percent due to liquidity constraints, and such funding arrangements are expected to boost the country's economic revival.
The local economy is facing challenges in respect of liquidity, and the Minister of Finance Tendai Biti recently announced that the country had underperformed during the first six weeks of the year, with the Zimbabwe Revenue Authority collecting US$156 million out of a target of US252 million for the period.
This has raised concerns that the country may fail to meet its annual revenue target for this year of US$2,7 billion.
Economic Planning and Investment Promotion Minister Tapiwa Mashakada said the Government was looking to secure the funds soon.
He said the Ministry of Industry and Commerce was in discusions with the South African Department of Trade over the facility.
'At the moment, Minister Ncube has engaged the Department of Trade with regards to the R2 billion pledge so that the recovery process is speeded up,' he said
'South Africa promised US$2 billionn and we are going to pursue that.
'We will focus on South Africa's credit line now that we have disposed Botswana.
'Zimbabwe requires US$10 billion to help revitalise the economy, but we are only generating US$2 billion,' said Minister Mashakada.
Zimbabwe and SA Africa had earlier agreed on a 2,65 billion rand loan facility, which was suspended in 2008 at the height of Zimbabwe's economic challenges.
However, efforts to renewit are now expected to bear fruit, coming as they do on the heels on an anticipated US$70 million (500 million pula) from Botswana.
Zimbabwe Cabinet has approved the signing of the Zimbabwe-Botswana Bilateral Investment Promotion and Protection Agreement set for conculsion within a fortnight.
The funds are largely expected to finance Zimbabwe's manufacturing and mining industries.
In 2009, Botswana pledged US$70 million to boost Zimbabwe's economy and support key industries that had either shut down or were operating far below capacity.
Zimbabwe's manufacturing industries have been operating at around 45 percent due to liquidity constraints, and such funding arrangements are expected to boost the country's economic revival.
The local economy is facing challenges in respect of liquidity, and the Minister of Finance Tendai Biti recently announced that the country had underperformed during the first six weeks of the year, with the Zimbabwe Revenue Authority collecting US$156 million out of a target of US252 million for the period.
This has raised concerns that the country may fail to meet its annual revenue target for this year of US$2,7 billion.
Source - Byo24News
