The Africa Export Import Bank (Afreximbank) and the Zimbabwe government have jointly unveiled a US$70 million loan facility to revive the country’s economy mailnly through its agriculture and manufacturing industries.

According to the agreement, Afrexim bank will inject US$50 million, while the Zimbabwean government will add US$20 million to the fund.
But the money would be channeled through banks.

Speaking at an official launch on Monday (August 30) Afreximbank representative Gift Simwaka said the bank remains fully committed to supporting Zimbabwe’s economic recovery so that it retains its position as an economic power house of southern Africa.

He added, “The purpose of the revival fund is to resuscitate a broad range of firms in the productive sector, especially in agriculture and manufacturing by providing medium term funding,” Prime Minister Morgan Tsvangirai said the loan will help the country revive its economy.

“The facility was established to curtail the challenges of high interest rates, unequal distribution of lines of credit of credit between the capital city and the rest of the country, limited lines of credit and lack of financing within the economy,” “While this facility represents a positive development it alone cannot address economic challenges that face Zimbabwe,” The government has been struggling to secure credit lines with the country receiving slightly above US$500 million in aid loans last year and a further US$200 million by June.

“The formation of the inclusive government in 2009 saw an improvement in inflows with disbursed lines of credit amounting to US $656 million being recorded in 2009,” Finance Minister Tendai Biti said.

“However, these disbursements, together with about US$200 million that has come in to June this year, fall far short of industry’s requirement,” he added.

In his mid–term fiscal statement, Biti said the main challenge confronting Zimbabwe in its efforts to revive the economy is lack of capital.

Zimbabwe’s economy has stabilized since last year after the formation of the unity government by President Robert Mugabe and Tsvangirai and dollarisation of the economy.

However, full recovery and donor support has been minimal, as donors demand comprehensive implementation of the global political agreement and inclusive government pitting Mugabe’s Zanu PF party, and the two Movement for Democratic Change.