Maravi

(HERALD) US$400m credit lines secured

US$400m credit lines secured
Masvingo Bureau

Zimbabwe has so far secured lines of credit amounting to US$400 million from countries in the region to revive operations of local companies in yet another sign that the international community is warming up to the country after the formation of the inclusive Government.

Industry and Commerce Minister Welshman Ncube said the lines of credit had been secured to specifically meet the working needs of local companies that have been operating way below capacity due to undercapitalisation.

Minister Ncube who was addressing members of the Masvingo Business community in the city last week said Zimbabwe had managed to secure about US$200 million from countries in Sadc and another US$200 million from Comesa to meet urgent and pressing working capital requirements for local companies.

This development dovetails with the Short Term Emergency Recovery Programme.

"We hope to begin to start accessing the funds in the next few weeks but I must point out that this money is working capital for companies seeking to procure raw materials to improve their capacity. The money is not for expansion purposes," he said.

The Minister added that government was still working on the modalities of accessing the funds stressing that all bankable projects would given attention once the funds became accessible.

Minister Ncube could not reveal the identity of the countries or institutions in Comesa and Sadc that would avail the funds because the finer details were still being worked out.

Government has also invited business to pinpoint policy issues that were inhibiting the flourishing of business so that these

gray areas could either be removed or reformed to open more windows for expansion and growth.

Minister Ncube also assured business that Government was working on the revival of Hwange Power Station and the National Railways of Zimbabwe, which he said were vital cogs in the recovery of the economy.

He also challenged the local business community to fully exploit the inclusive Government and start harnessing resources in preparation for the 2010 soccer finals to be held in South Africa and expressed concern there had been a lot of talking without action across the country.

Labels: DONORS, SANCTIONS, WELSHMAN NCUBE

posted by MrK @ 7:12 PM