Zimbabwe exceeds $1 billion target for credit from Africa

Zimbabwe has exceeded its target of securing $1 billion in credit lines from African countries and financial institutions to help rebuild a shattered economy, Economic Planning Minister Elton Mangoma said on Wednesday.

The southern African country, battered by a decade of economic decline blamed on President Robert Mugabe’s policies, has said it urgently requires $1 billion in credit lines to revive its industries and the same amount for direct budget support, mostly to pay workers.

A total of $8.3 billion is needed to restore the country’s economy.

“We’ve made major strides in obtaining lines of credit for the private sector … so our $1 billion target has already been surpassed,” Mangoma said during the public launch of a government 100-day economic plan.

Mangoma said Zimbabwe had so far secured $1 billion from African financial institutions such as the African Development Bank, the Cairo-based African Export-Import Bank and $150 million from neighbouring South Africa and Botswana.

The loans will be used to revive Zimbabwe’s industries, which are operating at around 10 percent capacity due to foreign currency shortages, a hostile operating environment and government price controls.

Mangoma however said efforts to raise $1 billion in direct aid from donors which the government desperately needs to fund its operations, had largely been unsuccessful, with only $35 million secured from South Africa and China.

International donors are yet to release any funding to the unity government, formed between Mugabe and Prime Mininster Tsvangirai, insisting the new administration carry out political and economic reforms and opens up the media.

Reuters.