ZIMBABWE has drawn down $40 million from a $250 million line of credit facility from a United Kingdombased firm, Gemcorp Capital.
Gemcorp is an international independent investment fund management entity that focuses on emerging markets. The company availed a credit line to Zimbabwe to enable it to import essential commodities in the face of a longstanding foreign currency crisis.
A Gemcorp Capital delegation that sealed the deal in November last year believed that the facility would help the country to import critical raw materials to help the resuscitation of manufacturing industry.
The facility was signed by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya, Finance and Economic Development Minister Mthuli Ncube and Gemcorp Capital.
Mangudya told Business Times that the Gemcorp facility was mainly used for the importation of fuel and other critical industry raw materials.
“We have so far drawn down a total of $40 million from the Gemcorp facility and the fund is assisting us in the importation of fuel and other critical raw materials,” said Mangudya.
He said the facility would also go into mining, telecommunication and pharmaceuticals in addition to the manufacturing sector.
Besides the facility, the UK-based firm showed keen interest to invest in various sectors of the economy to help the country industrialise.
The minister responsible for finance is expected to report at least twice a year, report to Parliament on the performance of the facility.
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.
The firm, which is just four years old, focuses on supporting emerging markets and has over $1 billion in funds for investment in the new markets in Africa, Eastern Europe and Latin America.