Zim to benefit from $100m Indian facility

Published: 31 March 2014

Zimbabwean companies will be able to purchase equipment from India through a $100 million credit facility that the Asian country has availed, a Cabinet Minister has said.

Industry and Commerce Minister Mike Bimha said the Zimbabwe Government would be the guarantor to the local companies seeking to utilise the facility, New Ziana reported.

"I am happy to report that, two weeks ago I went to India to the Africa-India Summit and Zimbabwe managed to be one of those countries which will benefit from what is called the buyers credit.

"It is a $100 million facility which will be available for industry," he said.

Minister Bimha said interested and needy local companies would place orders of either equipment or machinery from Indian companies and the Indian government would pay the Indian companies.

"And the role that Government will play is that of a guarantor. And I am happy to report that in my discussions with Finance Minister Patrick Chinamasa that is already in place," he said.

"So that facility will also fall within the industrial funding," he said.

Zimbabwe needs at least $10 billion to revive its distressed manufacturing sector.

According to the 2013 Confederation of Zimbabwe Industries manufacturing survey released last week, capacity utilization dipped in the year to September last year from 44,2 percent to 39,6 percent due to lack of affordable credit lines, ageing equipment coupled with acute power and water shortages.

The Zimbabwe government has since 2009 taken various initiatives aimed at reviving industries but lack of funding has crippled the efforts.

- New Ziana