Published: 17 July 2013

The Africa Export and Import Bank (AfrExim Bank) plans to increase Zimbabwe's borrowing limit to $800 million for the benefit of the productive sectors.

The proposed upward adjustment of Zimbabwe's borrowing limit to $800 million from $600 million by the AfrExim Bank is being made after a rise in demand for long-term loans by industries.

AfrExim Bank says in its latest report that local banks with a strong capital base will access long-term credit lines.

An economic analyst Mr Willie Ganda says while the proposed increase in the borrowing limits is a positive development, the regional financier should ensure that its proposed funds become a reality.

"What we want are funds that become a reality as industry seeks to recapitalise," said Ganda.

Another economic commentator Mr Trevor Jakachira said industry is concerned about the tight lending schemes on AfrExim Bank loans.

Jakachira said: "What we are concerned about are the stringent borrowing conditions that make it difficult to borrow."

AfrExim Bank remains one of Zimbabwe's biggest sources of external lines of credit after having advanced about $2 billion to productive sectors since 2009.
- zbc

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