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Tinashe Makichi Business Reporter
Sweden has contributed an additional $3 million to the Zimbabwe Multi Trust Donor Fund (Zimfund). The contribution will narrow the funding gap to $12 million.

The African Development Bank (AfDB) divided the Zimfund programmes into two phases with the first phase scheduled for completion by the end of this year while phase two began in July this year.

Zimfund is a fund administered by the AfDB on behalf of donors and is a short-term infrastructure development programme that supports economic recovery by improving the lives of ordinary citizens.

AfDB resident representative Mr Mateus Magala told journalists at the signing ceremony of the commitment letter by the Swedish government yesterday that fund donors have shown great commitment towards improving the lives of Zimbabweans.

“The commitment to contribute an additional $3 million brings the total resource endowment of Zimfund to approximately $148 million and narrows the funding gap to $12 million from $34 million at the beginning of this year.

“We are witnessing the signing of the commitment letter that symbolises a pledge by the government of Sweden to make available additional resources to the tune of $3 million to fund the water and sanitation and power sectors through the Zimbabwe Multi-Donor Trust Fund,” said Mr Magala.

“As espoused in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, rehabilitation of water supply, sanitation and energy sectors. We are quite grateful of Sweden’s commitment to increase its contribution to the fund.”

When Zimfund programme was declared effective, it had attained the minimum $40 million threshold as a result of contributions by the seven Zimfund donors.

Zimfund resources standing at about $145 million have been applied towards rehabilitating critical infrastructure projects in the water and sanitation and energy sectors.

“The rehabilitation of water supply and energy systems among other infrastructure bottlenecks are key imperatives for sustained economic recovery and development of Zimbabwe. It is against this background that Zimfund was initiated, as an emergency operation to address some of the water supply deficits among other challenges constraining the country’s rapid progress,” said Mr Magala.

The fund targeted the rehabilitation of power projects including the Ash Plant at the Hwange Power Station and several sub-transmission and distribution facilities in Atlanta (Murehwa), Criterion and Mpopoma (Bulawayo), Gweru, Kadoma, Marvel (Bulawayo), Mazowe, Norton, Pomona (Harare), Redcliff, Sherwood (Kwekwe), Victoria Falls, Zisco (Redcliff), Zvishavane and various electricity-distribution facilities throughout the country.

He said AfDB is confident that other donors will soon close the remaining gap of $12 million.

Finance and Economic Development Minister Patrick Chinamasa said the latest contribution of Sweden to the fund is an indication of growing confidence between Zimbabwe and European countries.

“Despite our problems Sweden has continued to show confidence in us and this has been substantiated by the commitment they showed today. I have always said that for us to get out of this economic situation we need to make friends.

“This is one step towards normalisation of our relations with the Europeans,” said Minister Chinamasa.

Swedish Ambassador to Zimbabwe Lars Ronnas said Sweden is always ready to fulfil its obligations through consistently committing funds to Zimfund.