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(HERALD) US$50m for local firms

US$50m for local firms
Friday, 06 May 2011 22:21

THE African Export and Import Bank has raised US$50 million through issuing of bonds on the international market to support Zimbabwe's export firms and pledged to continue financing the expansion of the country's productive capacities.

Officially opening the 52nd Edition of the Zimba-bwe International Trade Fair in Bulawayo yesterday, the bank's president, Mr Jean-Louis Ekra, who was the guest of honour, said the US$50 million was for medium term funding.

The event was attended by the Head of State and Government and Commander-in-Chief of the Zimba-bwe Defence Forces, President Mugabe, Govern-ment officials and ZITF management among others.

The Cairo-based financier has so far advanced a cumulative US$450 million to the country's private sector.

Afreximbank and the Preferential Trade Area Bank are the two financial institutions that have continued supporting Zimbabwe during the 10 years of economic recession when the International Monetary Fund and the World Bank withdrew support programmes in the country.

"On its part, Afreximbank, a clear success story of partnerships, will continue to finance the expansion of productive capacities of Zimbabwe's export sector through its various financing programmes and facilities.

"The bank has successfully raised medium term funds in the international financial market through a US$50 million issue. These funds will complement other financing programmes already in place, such as the Zimbabwe Economic and Trade Revival Facility and various lines of credit," said Mr Ekra.

Mr Ekra also commended the macro-economic stability in the country brought by the introduction of the multi-currency system in 2009.

He said the positive indicators provided a basis for a successful implementation of economic growth policies needed for a rapid positive transformation of the country's economy and its people.

Over the past two years Zimbabwe has managed its inflation levels to a single digit level of 2, 7 percent as of May 2011.

Positive gains have also been attributed to the pursuit of sound macro-economic policies, improvements in the banking sector and enhancement of the supervisory role of the Reserve Bank of Zimbabwe.

"These significant achievements, which were made on the back of one of the severe global economic crises in recent history, reconfirms the benefits of political stability and prudent economic management in driving economic development and human welfare. It also shows the resilience of the Zimbabwean economy," added Mr Ekra.

This year's exhibition was running under the theme "Optimising Business Synergies, Now and Beyond" and attracted participants from Germany, Indonesia Turkey, Ghana and South Africa. The mix of participants is expected to foster the expansion of South-South cooperation through the trade fair.

ZITF, the country's premier trade showcase, recognises trade as an important engine for economic growth and development.

Mr Ekra noted that trade remained the major driver of economic growth through increased and efficient utilisation of resources as a result of specialisation and large-scale production.

"African governments, Zimbabwe included, therefore have the responsibility to ensure that trade remains at the top of their development agenda.

"We, however, recognise that, Africa's efforts at increasing its share of world trade had been hindered by many challenges, including the continent's heavy dependency on primary commodities whose prices are highly volatile and susceptible to circular trends in international commodities markets, lack of diversification and adequate infrastructure," said Mr Ekra.

He added that the situation was further aggravated by the low level of technological know-how and domestic research capacity, limited access to much-needed external finance, limited market knowledge and information and limited government support for trade among other constraining factors.

Earlier President Mugabe toured the stands at the ZITF. - Bulawayo Bureau/Herald Reporters

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posted by MrK @ 3:25 PM