Harare - Four South African development financial institutions have expressed interest to fund infrastructure projects outlined in Zimbabwe’s economic blueprint ZimAsset.
According to a report by Zimbabwe's leading news agency, Financial Express, Finance and Economic Development Minister Patrick Chinamasa told a Zimbabwe-South Africa mini investment conference on Thursday morning that his government had received proposals for funding from the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and Transnet.
Chinamasa said the financial institutions have different spheres of interest. DBSA focuses mainly on funding infrastructure and socioeconomic projects in the region while Transnet is involved in rail, port and pipeline projects.
PIC focuses mainly on transport, energy, water and sanitation and telecommunications infrastructural investments and can also invest in projects that can contribute to regional integration, while the IDC supports industrial capacity.
Plea for concessionary loan rates
Chinamasa said more than 50% of the funding at US$14.7bn will go towards infrastructure and utilities.
He also appealed to the SA development finance institutions to charge Zimbabwe fairly when they extend loans to the country.
“We don’t have country risk as perceived everywhere. You don't take advantage of your neighbours' problems to take his wife, we need funding on concessionary rates,” he said.
Chinamasa said some SA development financial institutions are already participating in the economy, with DBSA funding the rehabilitation of the Plum Tree-Mutare highway.
“South African investments continue to grow in almost all sectors of the Zimbabwean economy as witnessed by TM and Pick n Pay retail operators and the ongoing plans by McCormick to construct the Mall of Zimbabwe in Borrowdale,” he said.
- Fin24