Harare — THE Swedish Agency for International Development will inject US$1million in a three-year partnership programme aimed at building capacity in the private sector as efforts to regenerate the economy move a gear up.

The programme is a partnership between the International Council of Swedish Industry and some key business organisations in Zimbabwe which include the Chamber of Mines, Employers' Confederation of Zimbabwe, Confederation of Zimbabwe Industries and Zimbabwe National Chamber of Commerce.

Acting Swedish Ambassador to Zimbabwe Mr G ö ran Engstrand last week said the support was aimed at promoting economic development in the country in line with the Short Term Emergency Recovery Programme.

The private sector has been bemoaning lack of funds for recapitalisation as hampering efforts to improve production.

"This will strengthen the role of the private sector in facilitating rapid economic recovery and a gainful climate for investments."

"This will in turn contribute to growth and to a sustainable combating of poverty in Zimbabwe," said the Ambassador.

Partnerships between the Government and private sector have been recognised as critical in the successful turnaround of the economy.

Independent economic analyst Mr Flanagan Khumbula said such packages would go a long way in playing a pivotal role in the realigning economic reforms.

"A lot of these funds will go into infrastructure development and to sectors that have been identified as playing a pivotal role in building the economy," he said.

The investments were clear evidence that investor confidence was rapidly creeping back into the economy.

"Investments at this point in time are very crucial and as a nation there is need for us to also build sustainable relationships with our investors," said Mr Khumbula.

Already economic analysts have expressed their optimism in the reduction of inflation saying that the investment funds have helped the economy regain its foothold and by year the livelihood of businesses would have improved remarkably.