THE Ministry of Tourism has secured a $50 million line of credit from India that will see Indian company Ashok Leyland supplying 670 vehicles for the sector.
By Business Reporter
In an interview yesterday, Tourism minister Walter Mzembi said the ministry’s permanent secretary was in India sourcing equipment and vehicles for the sector.
“They have successfully completed the transaction. We secured the line of credit from India and we have lined up many lines of credit this year. The vehicles will help for the continued support of the ministry,” he said.
Mzembi said since 2009 the ministry had not received meaningful support from the government so he had resorted to other means of getting access to cash.
Ashok Leyland Limited said that the company had received a contract from government to supply vehicles.
“The company has bagged a contract from the Ministry of Tourism and Hospitality Industry, Government of Zimbabwe, for supply of 670 vehicles valued at approximately $50 million. The order is planned to be executed in the financial year 2014-15,” the company said in a statement to Bombay Stock Exchange.
In the 2014 National Budget, the Ministry of Tourism was allocated $6,1 million compared to $73 million that is required.
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The ministry said the allocated funds would enhance Zimbabwe Tourism Authority programmes and activities assuming the funds were released on time.
The allocation was a decrease of 34,2% compared to the 2013 budget and the amount allocated represents 8,1% of the ministry’s total bid.
The tourism sector contributes 10% to Gross Domestic Product (GDP) and accounts for 13% of employment in the economy.
In 2013 the sector grew by 3,4% in 2014. In 2013 the sector recorded a marginal increase in tourism arrivals to 1,8 million from 1,7 million arrivals in 2012. The sector is expected to contribute 15% to GDP in 2015.
