Govt urged to seek foreign funding for ZimAsset

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INTERNATIONAL Monetary Fund (IMF) representative to Zimbabwe Christian Beddies has urged government to seek funds to bankroll its economic blueprint, Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset), from foreign markets as the local market had no capacity to raise the required amounts.

BY VICTORIA MTOMBA

Beddies made the remarks yesterday when he appeared before the Finance and Budget Parliamentary Portfolio Committee.

“Zimbabwe needs a strategy for the Zimbabwe Agenda for Sustainable Socio-Economic Transformation and it’s a bold plan with a lot of reforms that requires finance. Finance cannot be raised domestically. There has to be finance from outside,” Beddies said.

He said the country needs to find a solution on the arrears. Beddies said there was also need to look at the business climate going forward.

He said if 80% of the National Budget was spent on expenditures then it would be difficult to finance other critical areas.

Beddies said the country failed to qualify for the debt relief because it falls short by 10 percentage points, adding that 44% of the country’s debt was to the Paris Club.

The country’s total debt to the club is $3 billion of which $2,7 billion are arrears.

This is the first time that Zimbabwe would have accessed debt relief from the club.

The country’s total debt totals $10 billion.

He, however, said Zimbabwe’s IMF-supervised Staff Monitored Programme had recorded significant progress.

Relations between the IMF and Harare are improving after they soured a decade ago when Zimbabwe failed to settle a $124 million debt.

3 COMMENTS

  1. So how does government seek foreign funding when companies are closing, some being forced to by the same government? What other questions were asked by the committee? Looks to me a total waste of taxpayers’ time if there are any taxpayers left?

  2. … Mr. John Zaffar represents a Group of International Investors who are very interested in investing substantial sums of money in Zimbabwe for individual viable bona fide mining projects that require funding of US$ 1 million up to US $ 30 million subject to the proviso that such projects have been vetted by The Ministry of Mines and Guaranteed with ZIMBABWEAN GOVERNMENT SURETY BONDS that have been authorised and signed by His Excellency President Robert Gabriel Mugabe, to support their individual applications prior to seeking INTERNATIONAL FUNDING.

    For further information on the above, please contact JOHN ZAFFAR on his email address : johnzaffar@hotmail.comand cite Reference MLSC/EAS/JZ//2015.

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