HARARE - Zimbabwe's cash-strapped government is still anxiously making efforts to secure lines of credit from neighbouring countries, a government official said yesterday.
“The ministry is making frantic efforts to mobilise resources locally and externally, through pursuing pledged lines of credit under Sadc-initiated facilities,” deputy Finance minister Samuel Undenge told delegates at a Buy Zimbabwe stakeholders’ conference.
“These include, among others a $70 million Botswana line of credit, $50 million Angolan line of credit and a South African line of credit whose quantum would be subject to bilateral negotiations.”
Botswana, South Africa and Angola made the financial pledges in 2009 during the consummation of the inclusive government.
Undenge said the emergence of the Brics grouping offered potential for growth in financial and economic cooperation for Zimbabwe.
“We really need vigorous marketing of identified bankable projects and ensure that we cooperate to invest in the production of value-added products,” Undenge said.
This comes as the country is grappling with funding challenges that are affecting economic recovery following over a decade of decline.
Undenge said the country needs to establish a track record of loan repayments to China and other emerging markets in order keep these sources of funding flowing.
The regional financial assistance would help revive local industries, which have declined due to working capital constraints and ageing equipment among other challenges, Undenge said.
“As we all know, companies are confronted with capital constraints, high cost of borrowing and unavailability of long-term financing,” he said.