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Harare - South African companies are taking advantage of Zimbabwe’s unquenched thirst for capital by structuring infrastructure deals.
According to weekend reports, Chressham Investments of South Africa and Neo Capital also of South Africa have structured investment deals with the beleaguered Harare City Council, to fix Harare’s water woes for the former and to rehabilitate roads for the latter.
On Monday The Herald reported that Neo Capital had entered into a deal that will see the company invest US$400m for the road rehabilitation project.
Neo Capital will raise funding for the project against a 30-year concession at a repayment rate of US$15m annually.
This means the city will pay back US$450m, translating to a US$50 m return to Neo Capital at about US$1.67m per annum.
In a separate report, Cressham Investments has offered to fix Harare’s water distribution network at a cost of $100m.
The deal - which is reported by The Standard to be still under consideration - will also see Cressham Investments introduce broadband communication services by using water pipe infrastructure to lay fibre-optics.
Harare reportedly has 1 000 km of aged water pipe network and about 4 000 km of tarred roads that need urgent rehabilitation.
According to weekend reports, Chressham Investments of South Africa and Neo Capital also of South Africa have structured investment deals with the beleaguered Harare City Council, to fix Harare’s water woes for the former and to rehabilitate roads for the latter.
On Monday The Herald reported that Neo Capital had entered into a deal that will see the company invest US$400m for the road rehabilitation project.
Neo Capital will raise funding for the project against a 30-year concession at a repayment rate of US$15m annually.
This means the city will pay back US$450m, translating to a US$50 m return to Neo Capital at about US$1.67m per annum.
In a separate report, Cressham Investments has offered to fix Harare’s water distribution network at a cost of $100m.
The deal - which is reported by The Standard to be still under consideration - will also see Cressham Investments introduce broadband communication services by using water pipe infrastructure to lay fibre-optics.
Harare reportedly has 1 000 km of aged water pipe network and about 4 000 km of tarred roads that need urgent rehabilitation.
