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Zvamaida Murwira Senior Reporter
Government yesterday gazetted the $250 million credit facility from a United Kingdom-based firm, Gemcorp Capital, whose draw-down has already begun.

Finance and Economic Development Minister Professor Mthuli Ncube gazetted the facility which he and Reserve Bank of Zimbabwe Governor Dr John Mangudya concluded in September.

The first drawdown will first focus mainly on fuel and a Gem-corp Capital delegation led by head of investment Ms Parvoleta Shtereva met President Mnangagwa in Harare on Thursday to update him on progress regarding the facility.

Prof Ncube announced the deal in an Extraordinary Government Gazette published yesterday.

“It is hereby notified, in terms of subsection (3) of Section 300 of the Constitution of Zimbabwe, that on 12 September 2018 the Republic of Zimbabwe, represented by the Minister of Finance and Economic Development, concluded a guarantee in favour of Gemcorp on the following terms – (a) the Republic of Zimbabwe, represented by the Minister of Finance and Economic Development, irrevocably and unconditionally guaranteed due performance by the RBZ of its obligations under the finance documents, which included a revolving facility agreement; (b) under the revolving facility agreement, Gemcorp extended to the RBZ a revolving credit facility in an amount of US$250 million maturing 60 months after the date of signature; (c) the proceeds of the revolving facility agreement will be utilised for the purpose of financing defined commodities by approved importers.”

Section 300 of the Constitution deals with State borrowings and guarantees and required that the Government publish in a Government Gazette any agreements that it has entered into.

Section 300 (3) of the Constitution reads as follows: “Within 60 days after the Government has concluded a loan agreement or guarantee, the minister responsible for finance must cause its terms to be published in the Gazette.

(4) The minister responsible for finance must:

(a) at least twice a year, report to Parliament on the performance of:

(i) loans raised by the State; and

(ii) loans guaranteed by the State.”

Gemcorp Capital is an international independent investment management firm focused on emerging markets, for the importation of essential commodities.

It comprises Gemcorp Fund Limited, Gemcorp Multi Strategy Master Fund SICAV SCS, Gemcorp Africa Fund Limited, Gemcorp Capital LLP, Global Loan Agency Services Limited and Glas Trust Corporation Limited.

It focuses on emerging markets with a special interest in Sub-Saharan Africa, Latin America and Eastern Europe where the group has established itself as a reliable long-term partner for sovereigns and growth-focused private companies.

Briefing journalists soon after meeting President Mnangagwa, Ms Shtereva said the facility would also go into mining, telecommunication and pharmaceuticals.