Chinamasa courts Arab funding

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FINANCE and Economic Development minister Patrick Chinamasa has been invited to the Arab Bank for Economic Development (BADEA) headquarters in Khartoum, Sudan, to tie loose ends on a possible funding arrangement for infrastructure.

NDAMU SANDU

The invitation to visit BADEA was extended last Wednesday when Chinamasa met a team of executives headed by director-general Abdelaziz Khelef on the sidelines of last week’s African Development Bank annual meetings in Kigali, Rwanda.

In an interview last week, Chinamasa said he also held discussions with Saudi Arabia and Kuwait Funds, who expressed interest in funding infrastructure.

He said the appetite for availing loans was there and institutions wanted Zimbabwe to provide projects together with feasibility studies.

“With BADEA, they have invited me to visit their headquarters in October.
I am sure that by that time we would have put our papers in order,” Chinamasa said.

“The money will be going towards infrastructure which is important for economic growth. Kuwaiti Fund indicated that they will support hydro-schemes and they are considering giving us funds for feasibility studies.”
Chinamasa said he requested BADEA to provide funds for feasibility studies.

Saudi Fund requested Zimbabwe to provide projects proposals, Chinamasa added.

Experts say Zimbabwe requires $16 billion for infrastructure which is not available.

The budget is crowded out by recurrent expenditure, notably, salaries leaving little for capital expenditure.

Under its sixth five-year plan (2010-2014), BADEA pledged to commit $1 billion to projects on the continent.

The budget is up from the $900 million under the previous five year plan (2005-2009).

It said during the current plan an annual allocation of $200 million would be channelled to finance development projects, technical assistance and trade financing.

Last Tuesday, BADEA gave Rwanda a $11,2 million to finance its rural electrification programme. The concessional loan is payable over 30 years at a cost of 1% per annum.

7 COMMENTS

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  2. When we’re told that the government is over-borrowed we should know what the money was used for. My worry is that it is misappropriated (as is the case with the Chinese loan to Harare City being used to buy expensive vehicles) and noone is held to acount for that. Our biggest problem is that we continue to borrow borrow and borrow but we don’t really seem to account for what we borrow. There are smaller and poorer nations than us that have “at least” stable economies (never mind the ever-dynamic economic forces at play all the time). The corruption issues we read in the papers everyday only reinforce that they are just plots meant to prop one faction (in ZANU PF) rather than to get things straight. Why is the country going down the drain and nobody seems to care? The latest corruption story in the Herald is on the State Procurement Board boss’s excessive allowance and I bet my last dollar that his conscience will not be questioned. Tinongo delayer delayer kusvika pakufa.

  3. Even if Chinamasa go to the east, middle east and west to borrow. That is not the solution to our problem. Our problem at the moment is the management and accountability of the money. Corruption cancer is at its highest level.

  4. The gvt is not serious, if Chinamasa is serious, we can source funds on behalf of the government.

  5. The present economic melt-down has for the first time in his 34 years in power forced Mugabe to reconsider his life time believe that there was a mountain of money and wealth and his challenge was to see how much he could spend. When you have a mountain of money to spend the waste through such things as mismanagement and corruption regardless how significant they become compared to what was in the pot are ignored because you get an even bigger pot.

    Mugabe has no problem borrowing $27 billion for his ZimAsset project and thus increases the national debt nearly four-fold from $10 billion to $37 billion it is part of his bigger pot philosophy.

    Whilst most people are worried about the $10 billion debt already, Mugabe is not even bothered because his challenge is how much he can spend; he has no intention of ever paying back.

    Whilst Mugabe’s challenged is a mountain of money to spend what he is leaving for future generation is a mountain of debt to pay back and means to pay back the debts with since most of the borrowed money is being wasted through mismanagement and corruption.

    All those institutions and nation bankrolling Mugabe’s spending spree must know that most of the money is going to be wasted by the tyrant; there is overwhelming evidence of this out there now. They must therefore then know that future governments in Zimbabwe will have no obligation to repay any of the money they gave the Mugabe regime knowing it will be wasted.

  6. l doubt the Arabs or any nation in the world at the moment would be stupid enough to lend money to such a corrupt country as Zim, esp after the latest Harare city scandal

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