SW Radio Africa (London)
Alex Bell
14 May 2009
The country's private sector, which will play a critical role in rebuilding Zimbabwe, is set for a massive boost, with more than US$1 billion in credit lines being secured.
The cash strapped Finance Ministry has been fighting to secure cash investment in the country, to meet the estimated US$10 billion needed to put Zimbabwe on the right track to recovery in the next few years. But international donor governments, waiting to see real change on the ground in Zimbabwe, have understandably held back on direct cash investment. The ongoing violations of the Global Political Agreement that formed the unity government between the MDC and ZANU PF have done little to restore faith in the country. Leading rights groups have even warned against direct investment that could further prop up the murderous regime of Robert Mugabe.
Even fellow African nations, who pledged to support Zimbabwe's economic recovery, have only offered credit line facilities instead of cash for the unity government. Economic Planning Minister Elton Mangoma, who is also chairing the economic cluster of the 100-day action plan launched by the government this week, announced Wednesday that over US$1 billion in credit lines have been secured. The pledges have come from African financial institutions such as the African Development Bank, the African Export-Import Bank, while neighbouring South Africa and Botswana together have chipped in with US$150 million in credit lines.
Economist John Robertson explained on Thursday that the boost for the private sector is necessary, as their potential exports will bring Zimbabwe back to a competitive economic level. When asked about potential debt fears, Robertson explained that the investment in the private sector was different to direct spending by the government; direct spending that has left the government in enormous debt. He said private sector production is a critical step on the country's road to recovery, but warned that the credit line pledges will not mean overnight success for the industries.
Robertson explained that many private industries, such as agriculture and dairy, are still being directly affected by the ongoing political tensions in the government. He said the restoration of productive farming in particular would be held back, no matter what credit lines were available, because of the ongoing land invasions in the name of land reform.
Meanwhile, a delegation from the International Monetary Fund (IMF), will visit Zimbabwe next week, two weeks after announcing it was resuming technical assistance for targeted areas in the crisis-ravaged country. The Washington based IMF said in a statement it would help Zimbabwe with tax policy and administration, payments systems, banking supervision and central banking governance. Technical assistance from the Fund was suspended as a remedial measure because of the country's multi million-dollar debt, and the move to lift the ban is being lauded as a key step toward ending Zimbabwe's isolation from the international community. The IMF decision is also being hailed as a positive step towards encouraging investment in the country.
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why the hell are u always picking on Alex!!! u guys there in Harare are always copying everyone - no one is complaining !!!! GROW UP!!!!
Yes, and Uncle Bob would like the $Billion in 50's and 100's please, preferably brought in on the backs of a few hundred prime angus steers. I predict a shortage of barbecue sauce and utensils at police and CIA stations throughout the country. Im sure the private sector will get to lick the bones and utensils after the Zanuobos are thru with them; massive boost? Well, if you go from absolutely nothing to watching the boyz as they feast on other people's cattle and corn, then I guess you could say that you're moving in the right direction, even if it is just more of the same. Change will only come if you make it happen.
As usual Alex bell has nothing new to say that is "real" true, except copied articles from other sources. This is old news and has been reported several times...Please, no need to repeat copied articles!