Zimbabwe invites Chinese banks
PRESIDENT Mnangagwa has invited Chinese financial institutions to set up banks in Zimbabwe to provide appropriate packages to fund economic reconstruction.
Lack of affordable finance has adversely affected funding for industry and efforts to revive the economy.
Addressing the Zimbabwe China Business Forum here yesterday, President Mnangagwa said the economy continued to face financing challenges.
“Due to the 18 years of isolation as a result of illegal economic sanctions, our economy has suffered from limited affordable long-term financing and credit lines,” he said.
“We therefore invite players in the financial services sector to come and establish financial institutions that offer appropriate financial solutions and packages for the unique realities of Zimbabwe and the region and the African continent as a whole.”
The President was on a five-day State visit to China that ended yesterday. Zimbabwe’s economy has faced funding constraints due to Western economic sanctions which have in turn deterred would-be investors.
A few bilateral and multilateral financiers have been coming, but what has been put on the table is inadequate to meet current requirements.
Estimates are that the country needs about $14 billion for the rehabilitation of infrastructure alone, while firms need millions for retooling.
Furthermore, sectors such as agriculture and mining need funding to realise their potential.
Local banks have been unable to secure adequate funds, while companies across the economy have bemoaned the high cost of borrowing in instances where such funds are available.
The African Development Bank and the Africa Export and Import Bank have supported Zimbabwe over the years, but this has been inadequate to counter the effects of Western sanctions.
Chinese banks have the financial muscle to bankroll major national projects and come up with packages that could prop Zimbabwe’s economy.
At least 200 business executives, 80 of them from Zimbabwe, attended the business forum which was described as highly successful by delegates.
President Mnangagwa said Zimbabwe was strategically positioned to become a regional hub for investment.
“Due to its geo-strategic location, Zimbabwe has the enormous potential to become a regional hub for any sector which investors may choose to commit to,” he said.
Opportunities were also available in the agriculture, mining and manufacturing value chains.
Wildlife, fisheries and forestry were also fertile sectors for investment, he said.
President Mnangagwa challenged the public and private sectors from both countries to leverage on strengthening ties between Zimbabwe and China to do more business and create jobs.