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Minister Chinamasa

Business Reporters
A BRITISH trade delegation that recently visited the country says there is vital need to review the Zimbabwe Agenda for Sustainable Socio-Economic Transformation document and undertake feasibility studies to assess how much and the type of funding will be required for each project under the blueprint.The five-member British delegation was in the country last month to explore areas of co-operation and establish potential ways of funding implementation of Zim-Asset.

It was the first British government- sponsored delegation to Zimbabwe in 20 years. Finance and Economic Development Minister Patrick Chinamasa said the visit marked the first stage in normalising relations between Harare and London.

In its report titled “Zimbabwe Scoping Report October 28-31 2014” released last Friday, the trade mission said international technical assistance would be necessary if Zimbabwe was to realise the goals of Zim-Asset.

“The Zim-Asset plan provides a useful overview of the kind of major infrastructure developments that the Zimbabwean Government would like to execute, but the plan needs to be built upon and taken to a more detailed level,” said the report.

“The document highlights a wide range of projects, some of which are major internationally supported projects that are already underway; others are very speculative. Zim-Asset should be used as a basis from which to prioritise projects and identify which projects are most suitable for soft loans, private sector investment, or PPP models.

“The strategies that support each ‘cluster matrix’ of projects in Zim-Asset are very general especially where the strategies say that the Government should adopt PPPs or mobilise resources from friendly countries and development partners.

“The document clearly demonstrates what the Government would like to achieve but not how. UK companies can be of most assistance by providing detailed specialist support in the planning and execution of projects.”

From the discussions with the Minister Chinamasa, it emerged that Zimbabwe is in the process of developing the legal and legislative framework for a standardised PPP process to help fund Zim-Asset projects. But Minister Chinamasa stated they the Government has no experience in that the area and would welcome any assistance available from the UK companies, according to the delegation.

“The minister indicated its experience of PPPs, or joint ventures, with the private sector had been too one- sided, and it needs help to improve the negotiating terms between the Government and private partners. He reported that it was felt some investors had been recovering their costs too quickly, and if this was not managed appropriately, it would create bad feeling towards the PPP concept.”

The mission said Minister Chinamasa acknowledged that the country could not develop through borrowing alone and an improved approach to PPPs would allow development to proceed with speed and clarity.

“At the time of writing, the majority of Zim-Asset projects need detailed feasibility studies to access which projects are truly bankable. UK companies could again provide support in stress testing projects that could be financed either as PPPs, or via loans.

“As donor engagement with Zimbabwe increases, the UK’s technical expertise in project finance would be most welcome,” said the mission.
While in the country, the delegation met Vice President Joice Mujuru, Minister Chinamasa and senior Government officials. The delegation was made up of experts from infrastructure development, programme management and communications services, physical and infrastructure solutions and socio-economic infrastructure development.