LIVINGSTONE MARUFU
ZIMBABWE is in the process of negotiating for a $200 million liquidity support facility from a United Kingdom-based fund which will be used for the local manufacturing industry over the next two years.
The two-year facility will enable selected local manufacturing companies to import critical raw materials and intermediate goods.
The facility will also be used by other businesses to restock ahead of the festive season.
The Reserve Bank of Zimbabwe, which is facilitating the credit line expects to conclude the deal before year end.
RBZ governor John Mangudya could not divulge further details but confirmed that more UK loan facilities are coming in the country’s way in the next two years.
“There are many facilities that the country is pursuing from UK and Europe as a whole to ramp up production for all sectors of the economy,” he said.
However sources close to the negotiations said the $200 million facility will be availed in two tranches; $70 million before year end and $130 million early next year.
“Last week, an RBZ delegation was in the UK to meet the fund’s officials to conclude the $200 million loan facility which is required to resuscitate the manufacturing industry.
The funds will be used to boost production in the manufacturing sector where serious shortages continue to persist.
“Monetary authorities are desperate to ensure the manufacturing sector is back on track, if the facility comes in by December, the suspension of SI 122 of 2017 will be lifted by March. This facility will also help the country in other areas where there are serious forex shortages,” a source said.
