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Nyemudzai Kakore Herald Correspondent
Government has signed an $8 million loan agreement with the OPEC Fund for International Development (OFID) to support poverty alleviation projects in three of the country’s provinces, Finance and Economic Development Minister Patrick Chinamasa said. Minister Chinamasa said the poverty alleviation projects are a direct translation of the country’s economic blueprint, Zim-Asset, which seeks to eradicate poverty through value-addition of local resources and will benefit three provinces namely Masvingo, Manicaland and Matabeleland North.

As such he said, the successful implementation of the projects will help improve the livelihoods of the beneficiaries through alleviation of hunger, improved food security and boosting of nutrition, increased household and personal incomes and strengthening of entrepreneurial training institutes and capacity building of beneficiaries to gainfully participate in community and national development projects.

“I want to advise Senators that the Government of the Republic of Zimbabwe and OPEC International Development Fund (OFID) signed a $7, 6 million loan agreement to support poverty alleviation projects,” said Minister Chinamasa.

“The loan was sourced at a concessionary interest rate of 1,5 percent per annum, with a tenure of 20 years, comprising of a five-year grace period and 15 years bi-annual repayments.

“I place on the table of the august House a document which sets out the key features of the facility.”

Minister Chinamasa, who was speaking in the Senate while seeking approval of the projects from Senators, said the financing of the projects is $8,3 million, with OFID contributing a loan facility of $7,6 million (91,6 percent) while the Government will provide counter-funding of $700 000 (8,4 percent). He said the projects were earmarked to commence in January 2017 and will be implemented over a period of four years.

“The loan will be serviced from funds deposited by beneficiaries into a revolving fund. The Ministry of Small and Medium Enterprises and Cooperatives Development will be the executing agent responsible for the implementation of the projects.

“In order to ensure the smooth implementation of the projects, a Project Management Unit (PMU) will be established under the ministry, whose mandate will be to oversee the day to day activities of the project,” he said.

“The projects will improve access of beneficiary households to enhanced socio-economic services and income generating opportunities, through support to the following programmes and sub-projects such as livestock development (cattle rearing, construction of cattle fattening pens, drilling of community boreholes) and optimisation of local endowments,” he said.

He said the programme will also encompass value addition of locally available fruits, honey production and processing, fish farming, among others.