There’s light at the end of the tunnel Finance Minister Patrick Chinamasa (middle) is flanked by his deputy Dr Samuel Udenge (left) and African Development Bank regional director Ebrima Faal during a media briefing at the New Government Complex in Harare last week. Government has engaged Africa Development bank to help it assign the true value of the mineral deposits in the country into tangible benefits and enable the country access external funding for the economy
Finance Minister Patrick Chinamasa (middle) is flanked by his deputy Dr Samuel Udenge (left) and African Development Bank regional director Ebrima Faal during a media briefing at the New Government Complex in Harare last week. Government has engaged Africa Development bank to help it assign the true value of the mineral deposits in the country into tangible benefits and enable the country access external funding for the economy

Finance Minister Patrick Chinamasa (middle) is flanked by his deputy Dr Samuel Udenge (left) and African Development Bank regional director Ebrima Faal during a media briefing at the New Government Complex in Harare last week. Government has engaged Africa Development bank to help it assign the true value of the mineral deposits in the country into tangible benefits and enable the country access external funding for the economy

Victoria Ruzvidzo Business Focus
Finance Minister Patrick Chinamasa has engaged into high gear in terms of sourcing funding and technical assistance from Zimbabwe’s partners. The engagement he had last week with the African Development Bank was quite in order and we hope it will yield much for this economy.
The AfDB has remained friendly to Zimbabwe even at a time when other multilateral lenders saw this country as a high risk.
In investment terms high risk means high return, a phenomenon that had escaped those that have sidelined this country for more than a decade now.

Besides, this country, truly speaking, was never a high risk or hard-hat area. It’s just that perception is considered fact when it comes to such issues where the world depends more on hearsay and not what is actually on the ground.

However, the discussions between Minister Chinamasa and AfDB’s regional director, Mr Ebrima Faal, are quite inspiring.
Zimbabwe has never been found wanting in terms of the minerals in its belly. It has more than 40 different kinds, claiming a top spot in most, as a regional supplier. For instance, it has the second largest platinum reserves after South Africa.

But what has boggled the mind over the years has been our failure to turn these reaches into the currency that we need to drive the economy.
Therefore, efforts to assign the true value of these mineral deposits into tangible benefits and enable the country access external funding for the economy are plausible. And who would be better to help us do this but one of the friends that have always stood by us, AfDB.
Certainly, Zimbabwe brags of a diverse portfolio of mineral deposits that could bring us billions if not trillions of US dollars to prop the economy.

“I have asked him (Mr Faal) to give us technical expertise to help us mobilise domestic resources and use those domestic resources in securitisation to unlock capital to flow into the country,” said Mr Chinamasa.

The country has been experiencing liquidity challenges of a high magnitude but this is one avenue through which more funds can become available.

On its list of funding requirements are infrastructure development, agriculture financing, increased electricity generation/importation, facilitating industry’s resuscitation and other demands that are affecting progress.

The AfDB itself says it stands ready to assist.
“The bank is Africa’s bank. It is a bank that it owned by the 54 countries on the continent. We know the continent well and, therefore, we are a trusted partner. Irrespective of what our membership are going through, we have engaged, that is what we have done in Zimbabwe over the last few years,” said Mr Faal.

Zimbabwe has always said home-grown solutions are the way to go, initiated by Zimbabweans for Zimbabwe. The harnessing of mineral deposits is one such domestic solution set to bring results.

An exercise that will determine our underground wealth is due, not only to attract foreign capital but also to take stock of what Zimbabwe has. So much has been lost through smuggling or pilfering, but once information is on hand, where possible, accountability becomes the operative word.

The summer cropping season is upon us and farmers, particularly small-scale and communal, expect the Government to hold their hand, with many still to recover from the droughts that this country has experienced in the past few years.

Minister Chinamasa should also come up with short-term strategies to help resuscitate industry which desperately needs to retool.
Health and education are also beckoning for funding while social safety nets are required to cushion drought-stricken areas and others that are facing immense challenges to meet basic needs such as food and shelter.

Certainly, Minister Chinamasa’s hands are full, but he has started well.
Zimbabwe also has other friends such as the Africa Export and Import Bank, the China Import and Export Bank and others that could chip it with packages to complement these initiatives.

By the way, what has happened to the R2,65 billion rand facility that our southern neighbour South Africa promised us? Minister Chinamasa may need to follow this up and see how this economy can maximise on the facility.

There are also others that have been sitting on the fence awaiting political direction. Now that this has since been established and President Mugabe is firmly in the driving seat, let the funds flow!

There are investors that have promised to pour in large amounts into the mining sector and other facets of our economy while other financiers have pledged their willingness to assist. We expect them to make good their promises.

Over the last few months, the International Monetary Fund and the World Bank have softened their hearts towards Zimbabwe, stressing they are willing to help Zimbabwe find its footing.

Only last week the World Bank said Zimbabwe now qualified for debt relief, but stressed this was dependant on a “convincing recovery plan”.

This country owes the bank US$1 billion. Lending was stopped in 2001, but the bank has shown increasing interest to re-engage Zimbabwe.
“I think Zimbabwe is there now. What we want to see is a strong recovery programme, I hope this is what the new Government is looking at. If that is done, then we can discuss debt relief because that will help the country,” the bank’s senior resident economist, Nadia Piffarreti, was quoted as saying last week.

This can only bring positive news for a country whose economy is choking under a US$10 billion debt.
The onus is also on the private sector to take steps in securing finance facilities to augment Government’s efforts.

Many banks and other private sector bodies have international contacts that they should use as a channel to help finance the economy.
It would certainly be folly of the private sector to expect Government to meet all their requirements while they sit and wait. Everyone must get into the field of play.

The sun is certainly shining brighter for this economy but much work is required before we can begin to enjoy its warmth. It is serious business and Minister Chinamasa and team are not expected to have early nights at all.

In God I Trust!

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